Compare business energy prices

Energy prices are constantly changing. The reasons for those sudden price hikes can range from an increase in energy transportation costs to a simple surge in demand. This means that even if you run an energy-efficient business, you could still see an increase in your overheads, regardless of whether or not you’re using any more gas and electricity than usual.

A little confused? Your energy questions answered.

How much should I pay for my business energy?

Unlike household energy deals, we offer a range of ‘off-the-shelf’ tariffs to suit the needs of different households. However, business energy contracts are calculated to meet the exact needs of each individual business.

This tailored approach means you can be sure your tariff meets the needs of your business. But it also makes it difficult to put an exact figure on how much your business should be paying for gas and electricity.

Even if you compare your company to a similar sized one in the same industry, location is one of the many factors that can also affect the cost of business electricity and gas. So unless you share the same postcode, you may still pay a different rate.

These regional variations can account for as much as a 20% price difference. Businesses in rural areas typically pay more for energy than their city-based peers.

What is an SME?

An SME is an independent business that employs less than a certain number of staff, and has a turnover under a certain threshold.

The UK government currently uses the European Union (EU) definition of an SME:

• Micro Business – employs fewer than 10 staff and has a turnover under £2 million
• Small Business – employs fewer than 50 staff and has a turnover under £10 million
• Medium Business – employs fewer than 250 staff and has a turnover under £50 million

If you run a larger business with a maximum energy demand of 100 kVA or more per half hour, you’ll be placed on a half-hourly meter tariff. This will affect the overall price you pay for energy.

How is my business energy bill calculated?

There are a number of charges that go into making up your commercial energy bill. But there are two main charges you need to consider when comparing business energy prices:

• Unit cost – this is the amount you pay for each unit of gas or electricity you use. It usually accounts for the biggest price difference between tariffs. The lower your unit price, the less you pay for your energy (depending upon your consumption rate), so it’s a good idea to go for a fixed rate deal to avoid any price increases for the duration of your contract.
• Standing charge – this is a fixed cost that's charged by the day and covers the cost of infrastructure repair and maintenance.

Once you have an idea of how much energy your business will use, and know what the standing charge and unit costs are, you can work out how much your annual energy prices should be.

Alternatively, you can save yourself the time and hassle of calculating costs and get in touch with the Confused.com business energy team on 0800 326 5542. The call will only take 10 minutes at most. We’ll ask a few questions about your business and its energy use, so we can compare business energy tariffs and find a deal that’s right for you.

Should I go with the supplier that offers the cheapest business energy prices?

Although it might be tempting to go with the cheapest energy provider, the best-prices deal might not be the best fit for your business. And because business energy contracts don’t offer a cooling-off period, it’s vital you only sign up to a deal that ticks all the boxes. You don’t want to be tied into a long-term deal that offers poor energy supply or shoddy customer service, no matter how much money you save.

So, when you compare business energy prices, make sure you properly assess each quote. Choose the one that completely meets the needs and budget of your business, and doesn’t just offer the cheapest price.

If you need further advice on finding the best energy deal for your business, speak to one of our commercial energy experts today on 0800 326 5542. Or leave your details with us, and we’ll give you a call back.

Why should I compare and switch business energy with Confused.com?

Get a quote for a new and possibly lower electricity price with just a few clicks. Our electricity price comparison tool does the hard work for you, searching the market to see what the best prices are. An expert will then chat through the results with you, so you can choose the rate that’s right for you. However much electricity you use in your business, we could help you save money.

With our business energy comparison, you could get a quote for:

• Business electricity
• Business gas
• Renewable energy

Enter your details once and we’ll search our electricity providers, including British Gas, E.ON, npower and more. We’ll share all the available tariffs with you. When it’s this easy to compare electricity prices, there’s no reason not to give it a try today.