Running a business in the UK gets expensive fast. Between rent, staff wages, and everything else, electricity bills can hurt your bottom line. That’s why smart business owners are always looking for cheap business electricity suppliers to cut costs wherever they can.
What’s Happening with Business Electricity Prices
If you run a business, you don’t get the same protection as regular households. The government doesn’t cap your electricity prices. This means that utility companies UK can charge you whatever they think the market will bear. Some charge way more than others for the same electricity.
Things aren’t as bad as they were back in 2022 when everyone was panicking about energy costs. Well, prices have come down quite a bit since then. But here’s what most business owners don’t realize – there’s still a huge difference between what different suppliers charge.
If your business uses around 25,000 units of electricity per year (that’s pretty typical for a small shop or office), you’re probably paying around 27 pence per unit. But depending on which supplier you’re with, you could be paying way more or way less than that.
Who’s Offering the Best Deals
Some companies are currently beating most other suppliers on price. Some charging businesses around £6,374 per year for a typical 2-year contract. That might sound like a lot, but compared to some of the big names out there, it’s a pretty good deal.
The problem is that most business owners just stick with whoever they started with. Maybe that was British Gas, EDF, or E.ON. But these big companies often charge more because they know people won’t bother switching. Cheap business electricity suppliers know they need to offer better prices to win customers over.
How to Save Money on Your Bills
First thing to look at when you use electricity. If you can run your dishwashers, washing machines, or heavy equipment after 6 pm, you’ll pay less. Evening rates are cheaper because fewer people are using electricity then.
Secondly, don’t just look at the price per unit. Some suppliers charge lower rates but have higher standing charges. Others might give you a great deal for the first year, then bump up prices later. Read the small print.
Thirdly, your bill depends on how much electricity you use. Use less electricity and you’ll pay less money – it’s that basic. Put in some LED bulbs, and switch things off when nobody’s there. You’d be surprised how much this stuff adds up over a year.
Why Most Businesses Overpay
Most business owners hate dealing with utility providers in the UK because it’s boring and confusing. So they just auto-renew their contracts year after year. Big mistake. Energy companies love customers who don’t shop around because they might charge them more.
Another problem is that people think all electricity is the same, so why bother switching? But the difference between expensive and cheap business electricity suppliers can be thousands of pounds per year. For a typical small business, switching suppliers might save £500-£1500 annually.
Smart Meters
If you don’t have a smart meter yet, get one. They are free, and they show you exactly when you’re using the most electricity. Suppliers love this kind of information. Show them you’re using power when it’s cheap (evenings and weekends), and they’ll often cut you a better deal.
Smart meters also stop estimated bills. You know those times when your bill seems way too high? That’s usually because the supplier estimated your usage wrong. With a smart meter, you only pay for what you use.
When to Switch and When to Stay Put
The best time to switch is about 3 months before your current contract ends. Don’t wait until the last minute because business electricity suppliers need time to process your application.
If you’re currently on a variable rate and prices are going up, lock in a fixed rate quickly. If you’re on a fixed rate that’s ending soon and market prices are falling, consider going variable for a while.
What’s Coming Next
Prices keep going up and down. There’s more wind and solar power now, which is good. But all the new cables and equipment cost money, and guess who ends up paying for that? Utility companies are spending billions upgrading the grid for electric vehicles and heat pumps.
The smart business owners are the ones who stay on top of these changes. They don’t just switch once and forget about it. They review their electricity contracts every year, like they would any other major business expense.
Bottom Line for Your Business
Don’t let electricity bills eat into your profits when you don’t have to. The UK has dozens of electricity suppliers competing for your business. Take advantage of that competition. Spend an hour researching your options – it could save you thousands.