8 Questions Answered About Business Electricity


Running a business often means thinking about all sorts of details, from the big picture to the tiny details. Questions like “What’s my business’s vision?” and “How much do I pay in taxes?” are important. But questions related to your business energy and electricity bills are just as important.

In this guide, we’ll cover some of the most common questions about business electricity contracts and how to find the right one.

Is a business electricity contract the same as an electricity contract for a home?

No, a business electricity contract is not the same as an electricity contract for your home.

Businesses have to pay more than just the price of electricity; they also have to pay for other services such as maintenance and repairs.

Business electricity is often slightly cheaper than electricity used in the home because of a higher increase resulting in suppliers reducing their rates.

How much does electricity cost per month for a small business?

On average, a small business can expect to spend £354 per month on electricity. 

What are the different business electricity tariffs?

Different business electricity tariffs are designed to encourage you to use power when it’s least expensive. Many businesses can benefit from using less power during peak periods, which is when the most expensive energy is used.

The cheapest electricity rates are often called “off-peak” or “off-peak hours.” These rates apply only at specific times of day and may be available only during certain months of the year.

Time of Use Tariffs

There are three basic types of time-of-use tariffs: On/Off-Peak; Day/Night; and Seasonal. As their names suggest, these tariffs charge different rates depending on how much energy you use during different parts of the day or year.

What affects the price of business electricity?

The cost of business electricity is affected by several factors. The price of retail electricity (what you purchase from the supplier) depends on the wholesale price of electricity (what the supplier pays to the generator).

The wholesale price is dependent on the weather, how the electricity is stored, the supply and demand, regulatory pressures, as well as the prices of crude oil.

If I want to save money, what should I look for when switching to a new provider?

Business Electricity
Business Electricity

If you want to save money, it’s important to find a supplier with a good reputation. You can do this by checking out their customer service record, following the company on social media, and looking at reviews from other customers.

It’s also helpful to look for a company that has been around for some time and has a track record of offering competitive rates.

This doesn’t mean that newer companies aren’t reliable or won’t offer competitive rates – but if your goal is saving money, then choosing an older company could help ensure that your electricity rates are protected from unforeseen rate increases down the road.

What is an AMR Device?

An automated meter reading (AMR) device is a device that automatically reads all data on electric meters, such as consumption as well as status data. The AMR device then sends all this information to a database from which electricity bills are determined and the data is analysed.

Although an AMR device negates the need for manual meter readings, small business owners should still check their meters themselves and compare them to their monthly bills.

Speak to your utility company if you are interested in having an AMR device installed.

How is my energy bill calculated?

Your utility company charges you rates in accordance with your energy plan – whether it is fixed-rate or variable rates. This calculation is based on the volume of kWh your business has used, which will then be used to provide you with your monthly electricity bill.

On top of that, your business will have to pay 20% VAT on their energy usage.

What is CCL, and Why Am I Being Charged For It?

The Climate Change Levy (CCL) is charged on taxable services like heating and lighting for businesses in the commercial, public service, industrial or agricultural sectors. The purpose of CCL is to encourage businesses to improve their energy efficiency.


​We hope this article has helped you understand more about business electricity and how to choose an energy provider that is right for your company. Once you understand business energy, you will also have a better understanding of your energy bills, and the steps you can take to reduce your monthly energy expenditures.