Business Energy Rates: A Comprehensive Guide

When it comes to running a business, managing overheads is crucial. One significant expense for many businesses is energy. Understanding business energy rates is key to ensuring you’re getting the best deal for your company. In this guide, we’ll cover everything you need to know about business energy rates in the UK. 

What Are Business Energy Rates? 

Business energy rates are the prices that commercial entities pay for gas and electricity. These rates differ from domestic rates due to the varying energy consumption patterns and needs of businesses. Business rates often include additional charges, such as the Climate Change Levy (CCL) and the Meter Operation Service Agreement (MOP). 

How Are Business Energy Rates Calculated? 

Business energy rates are calculated based on several factors, including: 

  • Energy Consumption: The more energy your business uses, the lower the unit price may be. 
  • Meter Type: Different meters have different rates. Half-hourly meters, for example, may have different rates compared to non-half-hourly meters. 
  • Location: Energy rates can vary depending on where your business is located due to factors such as distribution costs and local taxes. 
  • Energy Supplier: Each supplier sets its own rates, so it’s important to compare quotes from different suppliers. 

Types of Business Energy Contracts 

There are several types of contracts available for businesses: 

  • Fixed-Rate Contracts: These contracts offer a fixed unit price for a set period, providing price stability and protection against market fluctuations. 
  • Variable-Rate Contracts: With variable-rate contracts, the unit price can change at any time, often in line with market conditions. 
  • Deemed Rate Contracts: These contracts are often more expensive and occur when a business moves into premises and uses energy without agreeing to a specific contract. 

Frequently Asked Questions 

Q: Can I switch my business energy supplier?

A: Yes, businesses can switch energy suppliers. It’s advisable to compare quotes regularly to ensure you’re getting the best deal. 

Q: How long does it take to switch business energy supplier?

A: The switching process can take anywhere from four to six weeks, although it can sometimes be quicker. 

Q: Will my business experience any downtime during the switch?

A: No, your energy supply will not be interrupted during the switch. The process only involves a change in billing and customer service. 

Q: Are renewable energy options available for businesses?

A: Yes, many suppliers offer renewable energy options for businesses looking to reduce their carbon footprint. 


Understanding business energy rates is essential for managing your company’s finances effectively. By comparing quotes, choosing the right contract, and considering renewable energy options, you can ensure your business is getting the best possible deal on its energy supply.