What is the average price businesses pay for their energy?
There are two main elements that make up the cost of business energy bills – a daily standing charge that you’ll pay regardless of how much energy you use, and a set cost for each unit (kWh) of gas or electricity you consume that is determined by your business gas or business electricity quote.
The price you pay per unit will depend on your deal, which is why it's important to run a business gas and electricity price comparison to get a contract that properly suits your business’s energy needs. This will help to ensure that you’re not overpaying for the energy that your business uses.
Your standing charge has less of an impact on the overall cost of your business energy bills but is still worth noting – it won’t vary based on how much energy you use, but remains constant as it’s the cost you pay your supplier for transporting gas or electricity to your business.
| Business size | Annual usage (kWh) | per kWh | Standing charge per day | Average annual bill |
|---|---|---|---|---|
| Microbusiness (e.g. church hall, domestic landlords) | 5, 000 - 15, 000 | 12.5p | 27p | £1, 349 |
| Small business (e.g. estate agents, hairdressers) | 15, 000 - 30, 000 | 11p | 25p | £2, 566 |
| Medium-sized business (e.g. pubs, cafes) | 30, 000 - 50, 000 | 10.5p | 22p | £4, 280 |
| Price per kWh | |||
|---|---|---|---|
| Microbusiness (e.g. recruitment office) | 4p | 32p | £516 |
| Small business (e.g. retailers, garages) | 3.8p | 30p | £965 |
| 30, 000 - 65, 000 | 3.5p | 28p | £1, 502 |
Source: Make It Cheaper 2015
How can I reduce the amount I pay per kWh?
The best way to reduce your business energy bills is to switch to a better deal to find cheap business electricity and gas rates.
If you’re not currently in an active contract, this means getting business energy prices from various suppliers to see who’ll offer you cheap business gas and business electricity rates. It’s important to do this quickly, as out of contract business electricity and business gas prices are invariably expensive and you’ll be paying well over the odds for your business electricity and gas supply.
If you are currently tied into a contract, you’ll need to check if you’re in a position to negotiate a new deal – failing to do so could mean that you find yourself on inflated rates when your existing contract ends.
