What are the latest business electricity rates in January 2025?

Electricity Prices in January:

Type of Business	Unit Rate (p/kWh)	Standing Charge (p/Day)
Micro Business	24.4 p	35.2 p
Small Business	23.1 p	47.3 p
Medium Business	22.8 p	61.4 p
Large Business	20.8 p	102.7 p

Note: Prices are accurate as of Jan. 2025.

Energy prices and invoice costs will vary depending on your meter type, business location, and credit rating. The rates we quote may differ from the averages shown, so it’s worth giving us a ring.

The figures displayed are the average unit rates and standing charges provided by Purely Energy for different business sizes between 1st and 5th September 2024.

Every business consumes energy differently, so these figures should only serve as a guide when estimating your rates. For precise savings and the best contract options, contact Purely Energy anytime to speak with a member of our team.

We’ve also published a recent blog on energy prices and a detailed breakdown of electricity costs – click here to learn more.

How much should your business electricity bills be in January 2025?

The cost of your business gas bills will depend on your contract type, the rates you’re paying, and how much electricity your business uses. Based on the latest rates, here’s a rough estimate of what businesses of different sizes might expect to pay annually:

Business Energy Usage and Costs

Business Size	Annual Usage (KWh)	Estimated Cost Per Year (£)
Micro Business	5,000 to 15,000 kWh	£814 (based on 10,000 kWh)
Small Business	15,000 to 30,000 kWh	£1,569 (based on 22,500 kWh)
Medium Business	30,000 to 65,000 kWh	£3,922 (based on 47,500 kWh)
Large Business	More than 65,000 kWh	£4,827 (based on 65,000 kWh)

Note: Prices are accurate as of January 2025

Your unit rates and overall bill may vary depending on your meter type and business location. The quotes you receive could differ from these averages. These figures reflect the average rates and standing charges provided by Purely Energy for different business sizes between 1st and 5th November 2024.

Who Supplies My Business Electricity?

It’s easy to lose track of your business electricity supplier, especially if you’re on a long-term fixed contract. The simplest way to find out who supplies your business electricity is by checking your latest bill or email correspondence. Your supplier’s details will usually be listed there.

Alternatively, you can:

Call the Meter Number Helpline at 0870 608 1524.
Use the Find My Supplier website by entering your postcode. You'll need your Meter Point Administration Number (MPRN), which can be found on your bill.

If you’ve switched with Purely Energy, feel free to contact us, and we can tell you who your current supplier is. We can also help you compare quotes for your next contract when the time is right.

At Purely Energy, we work with a variety of suppliers, including:

British Gas
British Gas Lite
EDF Energy
Crown Gas and Power
E.On Next
Total Energies
Valda Energy
Yu Energy

For businesses consuming over 65,000 kWh per year, your energy supply might be handled differently. For more details, visit Purely Energy’s large business energy guide or give us a call.

What is the average electricity consumption for UK businesses?

Understanding how much energy similar-sized businesses use can help you gauge whether your business is consuming too much. Your electricity usage will vary depending on the size and needs of your business.

The table below outlines the average business electricity usage, based on business size:

How many KWh should my business be using?

Micro Business

5,000 - 15,000 kWh

Small Business

15,000 - 30,000 kWh

Medium Business

30,000 - 65,000 kWh

Large Business

More than 65,000 kWh

How much electricity do businesses use in a year?

If your electricity bills seem too high, the issue may not solely be due to an expensive tariff—you might be consuming more energy than necessary. Common reasons include inefficient energy habits, like overheating, or a lack of energy-efficient infrastructure at your business premises.

Here are the average annual gas consumption figures for small and medium enterprises (SMEs):

Micro businesses (fewer than 10 employees, turnover under €2 million) typically use around 10,000 kWh of gas per year.
Small businesses (fewer than 50 employees, turnover under €10 million) usually consume around 25,000 kWh annually.
Medium-sized businesses (fewer than 250 employees, turnover under €50 million) use about 45,000 kWh of gas each year.

For further details on how your consumption compares to the average, check out Purely Energy’s guides to micro and small business energy. If your usage is above these averages, you may want to explore energy efficiency improvements or check out our guide to high-consumption and large business energy.

How are my electricity bills calculated?

When calculating your business electricity bills, there are three key factors to consider:

Unit rate – Measured in kilowatt hours (kWh), this is the cost you pay for each unit of gas your business consumes. If you're on a fixed tariff, this rate remains constant throughout your contract.

Standing charge – This is a daily fee charged whether or not you use any gas. It covers the cost of managing your gas supply and delivering it to your premises.

Non-commodity costs - Non commodity costs are additional charges on a business electricity bill. These charges cover the distribution of electricity, maintenance of the grid, and other network costs. Non-commodity costs are usually included in your standing charge (if not stated elsewhere on your electricity bill). Non-commodity costs can be up to 16% of your total electricity bill.

For more in-depth information on how energy pricing works—and why drops in wholesale prices don’t always immediately reflect in your rates—check out our guide on best time to review and fix your energy supply.

What is green business electricity?

Green business gas is produced from sustainable sources, such as plants or animal waste, through processes like biomass. While many suppliers now offer 100% green electricity as standard, the technology for producing environmentally friendly gas isn’t as advanced, making green gas options much rarer.

Currently, green business gas is available all across Great Britain, the main benefit is to people conscious of their carbon reporting and targets to reach net zero.

Green gas usually costs around 1.2 - 1.5 p/kWh more expensive than brown gas. If you choose to buy green gas, somewhere in the UK your gas supplier will be putting the green gas onto the grid, and they will receive a certificate for this gas. The gas out of your meter may be not the exact same as the network is shared, but for the 1.2-1.5 p/kWh extra you are buying the certificate of generation which can only be sold once.

To learn more, explore our guide to renewable business energy or speak to one of our expert team at Purely Energy . If switching to green gas isn’t feasible, you can choose a supplier that supports environmental projects and sustainable energy initiatives in other ways.

Your Meter Point Administration Number (MPRN) is a unique identifier for your gas meter, consisting of up to 13 digits. It's essential for any changes to your gas supply or when switching providers.

How to find your MPAN number

Unlike your MPRN for the gas network, the MPAN number isn’t actually printed anywhere on your electricity meter. The simplest way to find your MPAN number is to check the top left or bottom right of your last electricity bill.

If you haven’t got a previous bill to hand, you can get your electricity supply number by ringing your regional electricity supplier on one of the numbers below. The ID numbers shown should correlate to the Distribution ID on your meter, depending upon your region.

For more information about MPANs and why they’re important, check out our guide to MPAN and MPRN numbers.

Most businesses are required to pay the standard 20% VAT on gas. However, you may be eligible for a reduced 5% rate if you run a charity or a not-for-profit organisation. You might also qualify for this lower rate if your business uses less than 4,397 kWh of gas each month. To check your usage, simply refer to your latest bill for the exact figure.

If you believe your business qualifies for the lower VAT rate, contact your gas supplier and request a VAT declaration form. For more information, visit our guide to VAT for business gas and electricity.

Business electricity rates can often be cheaper per unit compared to domestic rates, mainly because businesses typically use more energy, allowing suppliers to offer lower unit prices. However, business energy bills may seem higher due to the 20% VAT charged on business gas and electricity, compared to the 5% VAT on domestic energy. Additionally, businesses often face higher standing charges—fixed daily fees—contributing to the overall costs.

While the unit price may be lower, these factors can make business electricity bills appear more expensive overall.

Regularly comparing rates can help businesses secure the best deals.

We can switch your supplier in as little as five working days. If you are currently out of contract and would like to switch suppliers as soon as possible, give us a call, and we will ensure your supply is switched as soon as possible.

Don’t worry, switching suppliers will not interrupt your energy supply.

If you could send a copy of your most recent energy bill, then that would be fantastic! It gives us all the information we need without you having to dig around for it. All we need is:

- Your company name

- Your contract end date,

- MPAN

Business electricity prices change daily, making comparing rates regularly essential. Locking in a new contract when your switching window opens can be a great way to secure lower rates and avoid potential price hikes. Some of the top business gas deals currently include offers from big suppliers like EDF, British Gas Lite, and Scottish Power. These suppliers offer rates starting from 23p per kWh, depending on your business size and location.

To find the most competitive business gas deals for your company, call us anytime on 0161 521 3400.

Due to government regulations, if your business uses more than 100 kVa at any time, you will need to have a half-hourly meter installed. Half-hourly meters take automatic meter readings every half an hour, which ensures your energy bills are accurate and that you don't get overcharged for your energy usage.

Yes, electricity prices can vary depending on what region of the UK you are in. This is mainly because of:

- Supply and demand

- The cost paid by suppliers

- Transportation costs (This is why electricity energy is often more expensive in rural areas).

With more electricity being generated by sustainable sources, prices are also dropping in areas that can produce their own renewable energy.

Micro business electricity refers to electricity supply contracts specifically tailored for micro businesses. A micro business is defined as a company with:

- Fewer than 10 employees.

- An annual turnover of less than £1.7 million.

To qualify for micro business electricity tariffs, your business must meet at least one of the following criteria:

- Use less than 200,000 kWh of gas per year.

- Use less than 55,000 kWh of electricity per year.

- Have fewer than 10 employees and an annual turnover or balance sheet total not exceeding €2 million (approximately £1.7 million).

Microbusinesses often benefit from special rates, as energy suppliers recognise their smaller energy needs compared to larger businesses.