Who is the cheapest electricity supplier for small business in February 2024?
Finding the cheapest electricity supplier for small business is no easy task! Business energy prices seem to be increasing all the time & for a SME’s that can have a huge impact. Electricity bills are one of the easiest to forget & with the increased use of electrical technology, they seem to be getting higher. By following these steps you can make a start on reducing your business electricity costs by getting your staff more energy efficient. If you would like to read more information or learn more about the pricing of business energy, you can do so here.
We also want to help you understand how to pick a good electricity supplier for your business. Enterprise companies have the brand & weight to push suppliers right down on price, while SMEs are left to try & figure out the best deals from the hundreds out there. So we have developed this post to help you do just that & educate you about business electricity suppliers & more importantly how to get the best deal on your business electricity.
Most energy suppliers will refer to your small business as a micro business – Ofgem would categorise you as a micro business if you meet one of the following criteria :
- You employ less than 10 employees (or their full time equivalent) and has an annual turnover or balance sheet no greater than €2 million, or
- You consume less than 100,000 kWh of electricity per year, or
- You consume less than 293,000 kWh of gas per year
It doesn’t change much for you in terms on contracts, although you may get a slight discount if a supplier is specifically wanting to grow that part of their customer base. But you will hear the term a lot so its good to understand the meaning.
Why do business electricity suppliers rates vary so much?
There’s a number of factors that impact your business electricity prices, none of which are advertised to you by the suppliers. As with most big dominant brands in any industry, the likes of British Gas, Scottish power etc can all charge more because they have the monopoly of the market… for now anyway.
However, if the UK gets an unexpected cold spell this means that the demand for electricity increases & electricity suppliers are not always able to predict that so won’t be generating as much power as they need. This along with the cost to make electricity can have a noticeable impact on the cost of energy for small businesses.
The good news for UK businesses is that two important things have increased which help to drive prices down, or at least stabilise them. The first is the increase of suppliers , according to Ofgem from 2008 – 2018 there has been over a 408% increase in the amount of domestic energy companies in the UK. Nearly all of which supply business energy, although no specific study on business only suppliers.
But these figures show you how much more competitive the market has to be on price. If there are more suppliers competing most will be lowering their margins to win the business, which is why more & more of us have been moving away from “the big 6” who have dominated the business energy market for decades.
The second thing that has had an impact on price & been on the rise in recent years is the use of wind & solar generated energy aka renewable energy. Businesses are more concerned than ever with ensuring their brand is seen as eco-friendly & renewable energy can help reduce the costs long term & have a positive impact on the environment.
How can my small business get the best deal on electricity?
The easiest & quickest way to get the cheapest electricity supplier for small business is to compare business electricity & switch suppliers. Much like insurance companies, business energy suppliers rely on consumers staying with them & subsequently will give their best rates to new customers so a simple way to lower your costs is taking advantage of that.
The cost of business gas and electricity is also impacted by the location of your business – regional variations can account for up to a 20% price difference. This usually means the rural businesses end up paying more so if you are in the middle of no where & considering moving into the city, whilst I appreciate rent being higher your business energy, broadband & other commodities are likely to be cheaper so can be worth it.
What information do I need to get the cheapest electricity supplier for small business?
Unlike your home energy supply, when you get a quote for your business electricity the quotes are tailored to your business. So, its not as black & white as British gas will charge X for X. That makes it easy to compare & get your quotes though.
All you need to compare & save is your post code, current supplier & contact details – It really is that simple. Requesting a comparison should take you no longer than 30 seconds & we would then call you up to confirm its a genuine request & do all the leg work of searching for you. Two business energy experts would contact you with the best quotes available. Our customers save £941 on their electricity tariff on average when they compare & switch their business energy with us.
Let us help you find the cheapest electricity supplier for small business today!
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Business Aims, Objectives & Values
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as:
James Ward is CEO and founder of CompareYourBusinessCosts.co.uk, a website that won the Prestigious ‘Website of the Year’ only in its second year of operations in 2015. The website has grown organically since then offering comparisons on over 20 different products including insurance, energy, telecoms, card machines, coffee machines and much more. James has a range of interests including horse racing, skiing, rugby and boxing. He splits his time between home family life, friends, exercise and socialising.