Business electricity rates are different to domestic electricity rates because businesses require a much greater amount of energy overall. As a domestic customer, you would usually be charged a set rate based on your demographic. However, as a business owner, there are a number of factors to take into account. This not only includes your demographic, but how much energy you require, when you need it, and the type of business you run. Electricity rates for a coffee shop in Manchester are going to be very different when compared to those of a tech firm in Cambridge.
The best way to make sure you benefit from the best business electricity prices is to use an expert comparison service.
When comparing deals, you will need to have a good idea regarding the different types of charges you could be subject to. The unit cost is the price of the electricity per kWh, which is simply what electricity is managed in: kilowatt-per-hour. The standing charge is the fee that electricity companies charge for providing you with energy. You can get some deals whereby you don’t have to pay a standing charge.
In the table below, you can see the average business electricity bill per annum for different sized businesses in the UK depending on how much energy they consume. Please note that there can be additional costs added to these figures, for example, 20% VAT, which can increase your overall cost considerably.
| Business Size | Annual Electricity Usage (kWh) | Annual Electricity Cost |
| Micro | 5,000 to 10,000 | £723 to £1,348 |
| Small | 15,000 to 25,000 | £1,741 to £2,841 |
| Medium | 30,000 to 50,000 | £3,233 to £5,330 |
| Large | 55,000+ | £6,100+ |
HOW DO ELECTRICITY METERS FOR BUSINESSES WORK?
An electricity meter is simply a device that measures how much energy your business has used. There are many different types of electricity meters, such as…
– Standard meter – This is the most common type of business meter. This is a one-rate meter, which means there is only one measurement period and one price.
– Multi metered MPAN
– Evening weekend and night meter
– Economy 7 meter
– Half hour meter
Those are just a handful of examples. You can also get meters that are designed for use with specific types of businesses; for example, maximum demand meters are ideal for business with very high electricity usage.
One type of meter that you may have heard about lately is the ‘smart meter.’ This is a meter that digitally sends reading to your energy supplier, so that you benefit from more accurate bills. This is a good way to save money on your energy bill, as it ensures you are not paying over the odds due to estimated bills. Click here for more on smart monitoring.
You will not need to install a business electricity meter yourself. This is something your energy supplier will do for you. Electricity meters typically take around one hour and 20 minutes to install. For duel meters, i.e. for measuring both gas and electricity, you can add another hour onto the time.
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