In 2024, UK businesses are navigating a challenging landscape of rising electricity prices, making it crucial to find the best deals to minimise costs and maximise efficiency. Read on for a list of the best business electricity prices available in 2024.
Our analysis of current market rates provides insights for companies seeking to optimise their energy expenses. Whether you’re a small startup or a large enterprise, you can find the data on cheapest business electric.
Average business electricity rates in 2024
| Supplier | Annual Consumption (kWh) | 2024 Average Rate (p/kWh) |
|---|---|---|
| Average for Small Businesses | 10,000 to 50,000 | 27.43 |
| Average for Medium Businesses | 50,000 to 100,000 | 25.43 |
| Average for Big Businesses | 100,000+ | 25.24 |
Cheapest business electricity prices in 2024
| Supplier | Unit Price (p/kWh) | Standing Charge (p/day) |
|---|---|---|
| British Gas | 60.78 | 464.67 |
| SSE | 84.79 | 123.21 |
| E.ON Next | 75.37 | 200.00 |
| EDF | 61.25 | 198.10 |
| Scottish Power | 53.20 | 125.00 |
| Engie | 66.72 | 337.00 |
| Opus Energy | 80.00 | 250.00 |
| Ørsted | 95.71 | 379.00 |
| Total Gas and Power | 107.32 | 203.00 |
| Corona Energy | 79.19 | 321.00 |
| BES Utilities | 139.00 | 300.00 |
| Smartest Energy | 108.48 | 218.83 |
| Shell Energy | 78.13 | 456.00 |
| SEFE Energy | 114.24 | 198.00 |
| Yu Energy | 80.00 | 159.00 |
Understanding market trends
Recent data reveals significant variations in electricity rates. For small businesses (consuming 10,000 to 50,000 kWh), the average rate is approximately 27.43 pence per kWh.
Medium-sized enterprises (50,000 to 100,000 kWh) and larger businesses (over 100,000 kWh) are looking at average rates of 25.43 pence and 25.24 pence per kWh, respectively.
These rates indicate a trend where larger consumption leads to slightly lower per-unit costs.
Comparing supplier offers
Diverse offerings from different suppliers underscore the importance of comparison.
British Gas, for example, charges 60.78 pence per kWh with a standing charge of 464.67 pence per day, while Scottish Power offers a lower unit price of 53.20 pence but with a daily standing charge of 125.00 pence.
It’s essential to consider both the unit price and the standing charge when evaluating costs.
Evaluating the impact of standing charges
Standing charges are a fixed daily cost, regardless of consumption.
Suppliers like Shell Energy and BES Utilities have high standing charges (456.00 and 300.00 pence respectively), which can significantly impact overall expenses, especially for businesses with lower energy usage.
Seeking the best fit
The “best” deal is subjective and depends on your business’s specific needs. A company with high energy usage might benefit from a tariff with a lower unit price but higher standing charge, while the opposite might be true for a smaller business.
Green energy options
With an increasing focus on sustainability, businesses should also consider green energy options. These might come at a premium but can align with corporate social responsibility goals and potentially offer long-term cost savings.
Negotiating contracts
Finally, don’t hesitate to negotiate with suppliers. Given the competitive nature of the market, there might be room for negotiation, especially for long-term contracts or larger energy commitments.
In conclusion, while 2024 presents challenges in terms of rising electricity costs for UK businesses, careful analysis and comparison of available options can lead to substantial savings. It’s more important than ever to stay informed and proactive in managing your company’s energy needs.
FAQ about best business electricity prices
Business electricity prices are influenced by factors like market demand, fuel costs, government policies, and the supplier’s pricing strategy.
Business rates often vary due to higher consumption levels, different contract terms, and the potential for tailored pricing structures compared to domestic rates.
Yes, businesses can often negotiate rates with suppliers, especially for longer-term contracts or larger energy use.
A standing charge is a fixed daily fee covering the cost of supplying electricity to your business, irrespective of how much electricity you use.
Green energy options can be more expensive, but they offer environmental benefits and can align with a company’s sustainability goals.
Longer contracts might offer more stable prices, while shorter contracts can provide flexibility but may have higher rates.
Businesses should consider the unit price, standing charge, contract length, customer service, and any green energy options.
Electricity prices can fluctuate often, influenced by market conditions and energy demand.
Switching suppliers can potentially reduce costs, especially if you find a tariff better suited to your business’s energy usage patterns.
Without a fixed-rate contract, businesses might face price volatility and unexpected cost increases, especially during periods of high market prices.