Compare Business Electricity

All the information you need will be on your latest bill. You’ll need to know your current supplier, tariff end date, supply type, and how much energy you use.

The switchover will take up to three weeks, with the new supplier doing most of the running around. There is no loss to your electricity supply in that time.

Business electricity rates are cheaper than domestic, but are balanced out by a higher amount of VAT.

Electricity bills are the total of two charges:

Unit cost – The price for each unit of electricity (kWh) your business uses.

Standing charge – A daily fixed rate covering National Grid maintenance and transportation of electricity to your business.

Electricity rates are based primarily on business size and consumption, but there are other factors to consider:

• Business size and location
• Business usage
• How many sites your business has – you may want to consider a multi-site meter to help save time and money
• Business Credit Score – This gives you access to the best possible deals
• Contract length – the longer the contract, the better the price
• The wholesale electricity market

If you run a large company or have high energy demand, you might be charged for electricity per half-hour, or have multiple meters installed for more accurate readings.

There are some additional smaller charges to take into consideration when choosing your supplier, including meter costs and transmission charges.

VAT

VAT on electricity is usually charged at 20%, but businesses that use less than 33 kilowatt hours per day can pay a reduced rate of 5%.

Climate Change Levy (CCL)

The Climate Change Levy is an environmental tax on electricity and gas services.

Businesses that pay the standard VAT rate (20%) will usually pay the CCL. Businesses that pay the reduced VAT rate (5%) don’t pay the CCL.

Some electricity companies supply their electricity from renewable sources – solar, wind, geothermal heat, etc. Choosing one of these companies would be a fantastic way to show that your business cares about the planet.

Look for a green tariff – the supplier will give an equivalent of your energy usage in renewable energy back to the National Grid.

Some suppliers will also help you to lower your electricity bills, giving you advice on reducing consumption in the workplace.