Shell Energy, a significant player in the UK energy market, offers a range of energy products tailored to businesses of various sizes and sectors. This guide provides an overview of Shell Energy business energy products, pricing structures, and how companies can navigate their options to make informed energy purchasing decisions.
Overview of Shell Energy
Shell Energy is part of the global energy giant Royal Dutch Shell, known for its extensive operations in the oil and gas industry. In the UK, Shell Energy serves both residential and business customers, offering electricity, gas, and renewable energy options. The company positions itself as a leader in the transition to low-carbon energy, aiming to provide sustainable energy solutions that meet the evolving needs of modern businesses.
Shell Energy business pricing list – Gas and electricity
Please note that these prices are indicative, as energy prices can vary based on market conditions, contract terms, and individual business needs.
| Product Type | Contract Duration | Electricity Price (p/kWh) | Gas Price (p/kWh) | Standing Charge (p/day) | Additional Features |
|---|---|---|---|---|---|
| Fixed-rate Standard | 1 year | 15.50 | 4.00 | 25.00 | Price stability, suitable for budgeting |
| Fixed-rate Standard | 3 years | 14.90 | 3.80 | 24.00 | Lower rates for longer commitment |
| Fixed-rate Green Energy | 1 year | 16.00 | 4.20 | 26.00 | 100% renewable electricity |
| Fixed-rate Green Energy | 3 years | 15.50 | 4.00 | 25.00 | 100% renewable electricity |
| Flexible-rate Standard | N/A | Variable | Variable | 20.00 | Prices vary with market conditions |
| Flexible-rate Green Energy | N/A | Variable | Variable | 21.00 | 100% renewable, prices vary with market |
| Carbon Offset Gas | 1 year | N/A | 4.50 | 24.00 | Carbon offset projects included |
Notes:
- Electricity Price (p/kWh): This is the cost per kilowatt-hour of electricity used.
- Gas Price (p/kWh): This is the cost per kilowatt-hour of gas used.
- Standing Charge (p/day): A daily fixed charge that covers the cost of providing your energy supply.
- Fixed-rate Contracts: Prices remain the same throughout the contract duration, providing budget certainty.
- Flexible-rate Contracts: Prices can fluctuate with the market, offering potential cost savings or higher costs.
- Green Energy Options: These include electricity sourced from renewable sources and carbon offset options for gas.
- Carbon Offset Gas: Offsets the carbon emissions associated with gas consumption by investing in certified environmental projects.
Business energy products offered by Shell Energy
Shell Energy provides a range of energy products designed to cater to the diverse needs of businesses. These products include:
- Fixed-rate contracts: These contracts offer businesses the certainty of fixed energy prices for a specified term, typically ranging from one to five years. Fixed-rate contracts protect companies from market volatility and are suitable for those who prefer budget stability.
- Flexible-rate contracts: For businesses willing to take on some risk to potentially benefit from lower prices, flexible-rate contracts allow energy prices to fluctuate with the market. These contracts can offer cost savings when market prices are low but also expose businesses to higher costs if prices rise.
- Renewable energy tariffs: Shell Energy offers 100% renewable electricity tariffs, enabling businesses to reduce their carbon footprint. These tariffs support the company’s commitment to sustainability and appeal to businesses prioritising corporate social responsibility and environmental goals.
- Carbon offset gas: For companies looking to neutralise their carbon emissions from gas usage, Shell Energy provides carbon offset gas options. This product allows businesses to offset their carbon footprint by investing in certified environmental projects.
Pricing structures and considerations
Energy pricing can be complex, influenced by various factors such as market conditions, regulatory changes, and supply-demand dynamics. Shell Energy’s pricing structures for business customers typically depend on:
- Contract type and duration: Fixed-rate contracts generally have higher rates than flexible-rate contracts due to the price certainty they offer. The duration of the contract can also impact pricing, with longer contracts often providing more stable pricing.
- Business size and energy consumption: Large businesses with high energy consumption may have access to bespoke pricing arrangements, leveraging their purchasing power for better rates. Small and medium-sized enterprises (SMEs) may benefit from standardised products with competitive rates designed for their consumption levels.
- Market conditions: Energy prices fluctuate based on wholesale market conditions, including supply chain disruptions, geopolitical factors, and changes in demand. Businesses opting for flexible-rate contracts should be prepared for price variations and consider market trends when making purchasing decisions.
- Green energy options: Renewable energy tariffs may come at a premium compared to standard tariffs, reflecting the cost of sourcing and certifying green energy. However, the premium for renewable energy has been decreasing, making it an increasingly viable option for businesses.
Navigating Shell Energy business energy options
Choosing the right energy product is crucial for businesses to manage costs effectively and support their operational goals. Here are some tips for navigating Shell Energy’s offerings:
- Assess your energy needs: Understand your business’s energy consumption patterns and future needs. This assessment will help determine whether a fixed or flexible contract is more suitable and how much emphasis to place on renewable energy options.
- Consider market trends: Stay informed about energy market trends and forecasts. Businesses with flexible-rate contracts should monitor price movements to identify opportunities for cost savings.
- Evaluate sustainability goals: If sustainability is a key objective, consider Shell Energy’s renewable energy and carbon offset options. These products can enhance your company’s green credentials and appeal to environmentally conscious customers and stakeholders.
- Consult with Shell Energy representatives: Engage with Shell Energy’s business advisors to explore customised solutions. They can provide insights into the best products and pricing structures based on your specific business needs and objectives.
For more, see our business energy comparison, and our price lists for business gas and business electricity.
Shell Energy business pricing FAQ
Shell Energy offers fixed-rate contracts for business customers with durations typically ranging from 1 to 5 years. For example, a 1-year fixed-rate contract might have an electricity price of 15.50 pence per kWh and a gas price of 4.00 pence per kWh, with a standing charge of 25.00 pence per day. A 3-year fixed-rate contract might have slightly lower rates, such as 14.90 pence per kWh for electricity and 3.80 pence per kWh for gas, with a standing charge of 24.00 pence per day.
Shell Energy flexible-rate contracts allow business energy prices to vary with the market. While specific rates are not fixed, a typical standing charge for a flexible-rate contract is around 20.00 pence per day. The electricity and gas prices will fluctuate based on market conditions, potentially offering cost savings when market prices are low.
Yes, Shell Energy offers renewable energy tariffs for businesses, including 100% renewable electricity. For instance, a 1-year fixed-rate renewable energy contract may have an electricity price of 16.00 pence per kWh and a gas price of 4.20 pence per kWh, with a standing charge of 26.00 pence per day. Longer-term contracts, such as 3 years, might have rates like 15.50 pence per kWh for electricity and 4.00 pence per kWh for gas, with a 25.00 pence daily standing charge.
Shell Energy’s standing charges vary depending on the contract type. For example, a fixed-rate standard contract might have a standing charge of 25.00 pence per day, while a flexible-rate contract might have a standing charge of 20.00 pence per day. Green energy contracts typically have slightly higher standing charges, such as 26.00 pence per day for a 1-year contract.
Shell Energy provides carbon offset gas options for businesses looking to neutralise their carbon emissions. A typical 1-year carbon offset gas contract might feature a gas price of 4.50 pence per kWh, with a standing charge of 24.00 pence per day. These contracts include contributions to certified environmental projects, ensuring that the carbon footprint from gas usage is offset.
Yes, Shell Energy offers bespoke pricing options for larger businesses with significant energy consumption. While specific rates will vary, large businesses often benefit from customised contracts that reflect their higher usage levels, potentially achieving better rates than standard tariffs. For example, a large business might negotiate an electricity rate of 14.00 pence per kWh and a gas rate of 3.50 pence per kWh, with standing charges tailored to their specific requirements.
Choosing a longer-term contract with Shell Energy, such as a 3-year fixed-rate contract, can provide businesses with lower rates and budget stability. For instance, a 3-year fixed-rate contract might offer an electricity price of 14.90 pence per kWh compared to 15.50 pence per kWh for a 1-year contract, with corresponding reductions in gas prices and standing charges. This stability can help businesses better manage their long-term energy costs.
Shell Energy offers competitive pricing options designed for small and medium-sized enterprises (SMEs). For example, SMEs might access standard fixed-rate contracts with electricity prices around 15.50 pence per kWh and gas prices of 4.00 pence per kWh, with a standing charge of 25.00 pence per day. These rates are structured to meet the typical energy needs of SMEs, providing both cost-effectiveness and reliability.