Compare business energy suppliers
Or call the experts at Bionic on:
0800 975 0781Which business energy suppliers do we work with?
We currently compare quotes from a range of energy suppliers, including big names as well as smaller companies that might be able to offer you a great deal on gas and electricity for your business.
We work with our trusted partner Bionic to help you find great energy tariffs. Bionic's experts work with leading energy suppliers to find the right plan for you, whether you’re a barbershop or a bakery.
Switching your business energy supplier is simple
Find out how our business experts can help you switch your business gas and electricity supply quickly and easily.
Simply enter a few details about your business and tell us when you're free to chat
Our UK-based experts will talk you through the available deals on a short call
We'll take care of the switch and help make it seamless for you
Why compare business energy with Compare the Market?
Comparing business energy quotes with Compare the Market could save your business time and money.
Businesses usually use more energy than domestic properties, and large businesses significantly more. Even small variations in price per unit can make a big difference, especially to larger businesses or energy-heavy businesses. This will cost you even more if you’ve been put on your supplier’s out-of-contract rates, which are often their most expensive.
Wholesale energy prices rose dramatically between 2021 and 2022. The Federation of Small Businesses (FSB) estimates that between February 2021 and August 2022, bills rose by 349% for electricity and 424% for gas. This reflects the fact that energy suppliers were increasing their contract rates to cover their own rising costs.
Although prices dropped considerably in 2023, they’re still around 50% higher than they were are the start of 2021. And unlike households, there’s no price cap on business energy. This is why it’s still important to compare business energy quotes and fix your rates to avoid more expensive out-of-contract rates.
If you don’t arrange a new contract to begin when your current one expires, you’ll be placed on those out-of-contract rates and will likely be paying more than you need to for gas and electricity.
Compare the Market’s commercial energy comparison service takes away the hassle of finding a cheaper business energy tariff. We compare quotes from a panel of trusted business energy suppliers to help you find a contract that suits your business.
Our partnered business energy experts, Bionic, are on hand to answer your questions. Call them on 0800 975 0781.
Compare business gas suppliers
With the help of our business energy experts, we can help you compare quotes for your business gas. Whether it’s to save money, get better service or do your company’s bit for the environment, you can search for the right business gas quote for you.
Compare business electricity suppliers
You’ll want to find business electricity tariffs that can offer you the best deal financially. Or perhaps you want to embrace a green tariff with 100% renewable electricity.
Our business utility comparison can help you explore all our latest business electricity supplier deals.
Why switch your business energy supplier?
Businesses often use a lot more energy than homes, which means overpaying for business energy can be even more expensive. When you break down business energy prices into the cost per unit used, even small price differences can lead to big savings on your company’s energy bills over a year. This is why it’s a good idea to carry out a business energy comparison before committing.
Here are a few reasons why you might want to switch your business energy supplier:
You’ve moved to a new business premises
If you’ve moved into new premises, you might be on what’s known as a deemed energy contract. This is a default energy deal that a business is placed on when it moves into a new property without arranging a contract with an energy supplier. It’s typically one of the most expensive contracts available.
You’ve been with the same supplier for several years
If you’ve not switched your tariff for several years, there’s a chance that your business energy supplier will have moved you to its out-of-contract rates. These are variable rate contracts that are often much more expensive than fixed tariffs you’ll find elsewhere on the energy market.
This could result in you paying far more than you need to. A simple switch could fix that.
Your business is expanding
As your business begins to grow, you could end up with more members of staff, as well as bigger or even multiple premises. This will impact your company’s energy use, which makes getting the right commercial energy deal even more important.
You want better customer service
You’ll want to make sure that you’re with a business energy supplier that’s reliable and has good customer service. If your energy supply is cut – and your supplier must give you notice before they do – your business won’t just suffer financially, it could also impact your company’s reputation with customers.
To help prevent that, find a supplier with excellent customer service to get problems resolved quickly.
What to consider when you compare business energy suppliers
It’s important to know that business energy suppliers don’t usually offer dual fuel deals. Instead, you’ll probably need to get your business gas and electricity supplied through separate tariffs.
This does mean you’ll have to manage your energy types separately. But it also offers you the potential to use different suppliers for each, which could get you a better deal. You can still get gas and electricity from the same supplier, but they’ll most likely still be on separate contracts.
It’s also useful to understand how your business energy prices are calculated, as this can help you understand what makes for a good deal. Business energy rates are mainly based on current wholesale energy prices, but things like your company’s size (in terms of staff and business premises), its location and meter type are also taken into account. Understandably, more people working in larger premises are going to use more energy, so your bill will reflect this.
Energy prices also differ by region, which makes a business in London likely to pay a different price to one in Scotland.
Finally, certain meters – like an economy 7 – charge different rates depending on the time of day. A ‘time-of-use’ tariff could be useful for different types of businesses. A nightclub, for instance, could potentially enjoy off-peak rates that a 9-5 office wouldn’t.
Before you compare business energy suppliers, you should first decide which type of tariff would suit your business best.
There are a variety of business energy tariffs available:
- Fixed-term tariffs
- Variable tariffs
- Deemed tariffs
- Out-of-contract rates
- Rollover tariffs
- Flex-approach tariffs
- Pass-through tariffs
- Blend and extend tariffs.
Business energy tariffs explained
Business energy contracts can’t usually be terminated once they are signed and agreed, so it’s important to choose the right contract in the first place.
Fixed-term
The most popular type of energy tariff for businesses. Energy suppliers typically offer commercial customers a range of fixed-term tariffs over one to four years. Although bills will vary depending on how much energy you use, the unit cost and standing charges remain the same for the agreed fixed term.
Variable
The rate charged per unit of energy (measured in kWh) is linked to market activity. This means what you pay for each unit of energy could change throughout your contract. These tariffs historically have been the most expensive. When prices go up, you’ll have to pay a higher rate.
However, you’ll benefit if prices start to come down. Your supplier will usually give you notice of an increase in prices.
Deemed tariff
You’ll be put on a deemed tariff if you move into new premises and start to use gas or electricity without agreeing a contract with an energy supplier.
Out-of-contract rates
You’ll be put on out-of-contract rates if you reach the end of an energy contract without switching suppliers or signing up to a new one with your current supplier.
Deemed and out-of-contract rates are usually more expensive than other contracts. This is why it’s a good idea to negotiate a new deal with your existing supplier or a new provider before your current contract expires.
Rollover tariff
With some energy contracts, if you don’t cancel or renew your contract, you’ll be switched to terms set out in a pre-fixed rollover contract. These automatically tie you into a new deal with your existing supplier.
They’re not as common as they once were. But it’s always a good idea to keep an eye out for when your contract ends and start negotiations in a timely way.
Flex-approach tariff
This allows you to bulk-buy your energy in advance, so when it comes to using it, you already know how much you’ve paid. Bulk-buying this way also means you can benefit from wholesale prices. It does have a downside if you find yourself out of contract when energy prices are high.
Pass-through tariff
This allows you to split your bill between the fixed wholesale price and other charges, like the National Grid and Transmission Network Use of System (TNUoS), which can vary over the year.
The idea is that the variable charges passed on to you, the business customer, may increase over time and offset the cheaper fixed wholesale price that you’ve been given.
Blend and extend contracts
Some, but not all, providers are willing to renegotiate with small businesses who fixed their tariffs during market peak in 2022.
This allows businesses to blend their existing contract at a higher price with a new contract that better reflects current prices. In return, you extend the length of the contract with the supplier.
What are the average business gas and electricity prices?
When searching for great business energy deals, it’s important to have an idea of current rates. The amount you’ll pay for your business energy will vary depending on your business size, the type of contract you’re on and the amount of energy you use.
Our partners Bionic have crunched the numbers to give you a rough idea of how much you should be paying on average for your business energy.
The figures below are the average price per kWh and standing charges quoted by Bionic per business size from 1-5 August 2024[1]. The prices you’re quoted may be different from the averages shown:
Business size Annual usage |
Gas unit price per kWh/daily standing charge | Electricity unit price per kWh/daily standing charge | Gas average cost per year | Electricity average cost per year |
---|---|---|---|---|
Micro business (5,000 to 15,000 kWh) |
8.2p / 47.9p | 26.0p / 57.0p |
£990 (based on annual usage of 10,000 kWh) |
£2,807 (based on annual usage of 10,000 kWh) |
Small business (15,000 to 30,000 kWh) |
7.6p / 41.8p | 28.3p / 67.8p |
£1,871 (based on annual usage of 22,500 kWh) |
£6,623 (based on annual usage of 22,500 kWh) |
Medium business (25,000 to 65,000 kWh) |
7.7p / 50.9p | 25.9p / 84.6p |
£3,861 (based on annual usage of 47,500 kWh) |
£12,623 (based on annual usage of 47,500 kWh) |
Large business (more than 65,000 kwh – gas) (more than 50,000 kWh – electricity) |
7.6p / 48.3p | 25.5p / 71.4p |
£5,116 (based on annual usage of 65,000 kWh) |
£14,279 (based on annual usage of 55,000 kWh) |
[1]Prices correct as of August 2024.
How can I save on my business energy bills?
Here are some tips to help you save on your business energy bills:
Compare quotes and switch supplier
If you’ve been on the same business tariff for years, you may be paying more than you need to, and a simple switch could see you making savings with little effort. If you’re on a good rate, now may not be the best time to switch. But it’s always good to see what’s out there for when you do come to the end of your contract.
Install business energy-efficiency technologies
There’s a growing variety of energy-saving devices for businesses. For example, you could install lights that activate with sensors, meaning they won’t be on unless people are in the area and need them. When you buy new equipment, check its energy efficiency and take that into account when choosing between suitable options.
Introduce energy-efficient workplace habits
You could give employees training and other guidance to get them into the habit of adopting energy-saving practices. For example, people should turn their computers and printers off when they leave for the day, rather than leaving them in sleep mode.
Run a business energy audit
This helps you find out how and where your business uses energy the most. Not only will it highlight your company’s energy usage, but it can also highlight areas where energy is being wasted. Simple things, like changing lightbulbs to more energy-efficient LEDs, could save money.
Get a smart meter installed
Ask your business energy provider about installing a smart meter at your business premises so you can track your company’s energy usage more closely. This could potentially allow you to spot opportunities for energy efficiency.
How to switch business energy suppliers
Switching business energy supplier is simple. You can change supplier when your contract enters the ‘switching window’, which is usually between one and six months before its end date. Time periods can vary, so check your contract.
As soon as this happens, you should run a business energy comparison. That’s because it’s a good idea to have your next energy tariff in place and ready to go for when your current contract ends. That way, you’ll avoid ending up on volatile out-of-contract rates.
To make the switch, just answer a few questions. Ideally, we’ll need to know:
- What you want to compare – gas, electricity or both
- How much you spend on business energy each year
- Whether you’re in or out of contact with your supplier.
If you’ll allow us, we can look up the information we need with just your business’s name and postcode.
Once you’ve answered everything, we’ll compare quotes from our panel of suppliers for you. Then, one of our energy experts will give you a quick call when you’re free, to run you through the available tariffs based on your needs.
Once you choose your tariff, Bionic will sort out all the finer details and arrange for the switch to take place.
What our expert says...
“With wholesale energy prices still fluctuating, it’s more important than ever to make sure you don’t slip onto volatile out-of-contract rates. When the time comes for you to switch, we can help you make a business energy comparison with the help of our trusted partner and industry experts Bionic.”
- Dan Tremain, Energy and business energy expert
Frequently asked questions
Why is business electricity so expensive?
There are a few reasons why business electricity is more expensive than domestic:
- Most businesses are charged the standard VAT rate of 20% for their electricity, while domestic customers pay 5%
- Businesses pay a climate change levy on their electricity bills, which is currently £0.775p/kWh
- Unlike domestic customers, out-of-contract business rates aren’t protected by the Energy Price Cap. Deemed contract rates for business electricity are typically much higher than deemed domestic rates.
What is the Climate Change Levy (CCL)?
The Climate Change Levy is an environmental tax charged on the energy that businesses use. Its aim is to encourage businesses to be as energy-efficient as possible and reduce their carbon emissions. You may be excluded from paying CCL if your business energy usage falls below the minimum limit.
The current CCL rate from 1 April 2024 is £0.00775. Any business can join the climate change agreement scheme and get up to 92% reduced rates.
What’s the difference between domestic and business energy?
Here are the main differences between domestic and business energy:
- There’s no price cap on business energy – domestic energy unit rates and standing charges are capped, but there are no such protections on business energy contracts. It’s important to compare quotes and fix your business energy rates to avoid price volatility.
- You can only switch business energy tariffs in the switching window – unlike domestic energy tariffs which you can switch at any time (subject to any exit fees).
- The market works differently – domestic energy customers can pick from energy tariffs available across the market. For business energy, you’ll need to get a bespoke quote from suppliers depending on the size, type and location of your business.
Are dual fuel business energy tariffs available?
No, business energy suppliers don’t offer dual fuel tariffs. Instead, business energy is split between business gas and business electricity. Because of this, you’ll need to agree separate deals for both types of energy. But you can still get both fuels from the same supplier. That’s where we can help you.
How do business energy contracts work?
While domestic energy contracts usually last for 12 months, business energy contracts can last anywhere up to five years, maybe longer. Business energy is also priced on a per unit basis, with both gas and electricity being contracted separately.
With a business energy contract, it’s industry standard to not offer a cooling-off period, and you won’t be able to switch suppliers until you enter the ‘switching window’.
How are commercial energy plans calculated?
The costs of a commercial energy plan are calculated using several factors, including:
- Your business’s energy usage – naturally, using more energy will cost more
- The size and type of business – for example, larger businesses tend to be charged less per unit because they will use more energy overall
- Your business’s location – energy is priced differently among regions
- Contract length – locking your business into a longer business energy contract may reward you with a cheaper per unit price. Just keep in mind that locking yourself into a longer term commitment means you won’t be able to switch to a better deal if prices fall.
Will my business energy be disrupted when I switch?
There won’t be any disruptions to your supply when you switch commercial energy suppliers. Your new energy supplier will liaise with your old one and make all the arrangements for the switch over.
As with domestic switches, you’ll be expected to take an up-to-date meter reading and pay off any outstanding bills.
What should I do if my business is moving premises?
If your business is moving premises, you’ll need to tell your current supplier:
- Where you’re moving – they’ll need your new business address
- When you’re moving – they’ll need the date you’re leaving your current business address, as well as the date you move into your new premises
- Provide meter readings – both when you leave your old address and when you arrive at the new one.
You should ideally give your supplier a month’s notice of your move. Just don’t leave it too late. If you end up cancelling your old supplier without arranging a new one, you’ll likely be put on a more expensive deemed rate.
How do I find out when my energy contract ends?
You should be able to find out when your energy contract ends by looking at a recent energy bill. If you can’t find the end date or it’s not clear, you should get in touch with your business energy supplier.
It’s important to know when your energy contract ends. It gives you time to start looking for a new tariff before you roll onto a more expensive variable rate.
How long does it take to switch?
How long it takes to switch business energy suppliers can vary between businesses, but according to Ofgem, it should take up to five working days.
But remember, if you’re on a fixed contract, you won’t be switched to your new supplier until this current contract has ended.