The UK's lowest cost business electricity

What might a business electricity bill look like at current rates?

Last updated: April 2026. Refreshed monthly alongside the rate table above.

The cost of your business electricity bills will depend on your contract type, the rates you are paying, and how much electricity your business uses. Based on the indicative rates above, here is a rough estimate of what businesses of different sizes might expect to pay annually. Because the underlying unit rates drift with the wholesale market, treat these as a planning aid, not a forecast.

These figures reflect the average rates and standing charges on the Purely Energy panel for different business sizes. Your unit rate and overall bill may vary depending on your DNO region, profile class, capacity charges and credit rating. Businesses with peak demand above 100 kVA are required to have a half-hourly meter and are priced on a different cost stack that includes Triad avoidance and DUoS red/amber/green bands. Businesses consuming more than 65,000 kWh of electricity per year usually qualify for bespoke I&C pricing and should speak to our large business team directly.

How to switch business electricity supplier

Switching business electricity supplier should take no more than a few working days once paperwork is in place. Here is our step-by-step process.

1. 1. Pull your latest bill

   We need your company name, annual electricity consumption in kWh, contract end date, MPAN (13 digit S number) and current supplier. All of these are on your most recent bill. If you cannot find it, call the Meter Number Helpline on 0870 608 1524.

2. 2. Request a whole-of-market comparison

   Submit your details at /get-a-quote or call 0161 521 3400. We tender across our panel the same day and return a like-for-like comparison, with every quote showing wholesale price, non-commodity costs, supplier margin and our margin separately.

3. 3. Pick a contract and sign

   Choose the rate and term that suits your budget cycle and risk appetite. Most clients select a 1 to 5 year fixed contract via Purely Fixed. Larger consumers may prefer a flex arrangement through Purely Flex. Businesses that want 100% renewable supply should ask about Purely Green.

4. 4. Confirm your switch date

   Your new supplier will register your supply at the Central Switching Service. Most business switches complete in 5 working days under the Ofgem Faster Switching Programme, though some legacy half-hourly meters and blocked transfers can take 4 to 6 weeks.

5. 5. Final meter read and handover

   On the day of supply start, submit a meter read (or let the half-hourly data flows handle it) so both suppliers can close out the old account and open the new one cleanly. This prevents estimated bills and avoids the most common source of billing disputes.

6. 6. Ongoing contract support

   Once switched, Purely Energy validates every bill you receive, handles supplier queries on your behalf, and flags your next renewal window at least 12 months ahead of the contract end date. Unlike most brokers, we stay with the account for the full contract term.

Frequently asked questions

The ten most common questions UK businesses ask about electricity procurement, pricing and switching, answered by our Warrington procurement team.

What is the average business electricity rate?

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As at April 2026, indicative business electricity unit rates sit in the region of 20 to 23p/kWh, with daily standing charges between roughly 40p and 150p depending on business size and meter type. Wholesale power moves every trading day on Elexon BMRS and the forward curve, so any single point figure goes stale within weeks. The figures here are wholesale-led averages across the Purely Energy supplier panel, refreshed monthly, and are published as a guide only. Your actual rate depends on your MPAN profile class, postcode, annual consumption, DNO region, credit rating and contract length. For a binding quote, request a tender at /get-a-quote (SME) or /online-quote (mid-market and I&C) and we will tender your consumption across every supplier on our panel.

How do I compare business electricity suppliers?

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Pull your most recent bill, note your annual kWh consumption, contract end date and the 13 digit Meter Point Administration Number (MPAN, often printed as an S number in the top-left or bottom-right corner of the bill). Give those details to a broker like Purely Energy and we will run a whole-of-market comparison across our panel, which includes Drax, EDF, British Gas, SSE, Total, Crown, Pozitive, Corona, SEFE and Yu Energy. We present every quote with wholesale price, non-commodity costs, supplier margin and our margin shown separately, so you can see exactly what you are paying for.

Do I pay VAT on business electricity?

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Most businesses pay the standard 20% VAT rate on electricity. You can qualify for the reduced 5% rate if you are a registered charity or not-for-profit, or if your premises uses less than 1,000 kWh of electricity per month (roughly 12,000 kWh per year). If you think you qualify, ask your supplier for a VAT declaration form. HMRC publishes the full eligibility rules in VAT Notice 701/19. The Climate Change Levy (CCL) is also charged on business electricity at a rate set by HMRC each April.

What are deemed or out-of-contract electricity rates?

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If your fixed electricity contract ends and you do nothing, your supplier automatically moves you onto deemed or out-of-contract rates. These rates are typically 2 to 3 times the rate you were paying under your fixed deal, and in recent years have commonly sat well above 40p/kWh for many suppliers. Ofgem requires suppliers to publish deemed rates on their websites and on your bill, so always check yours directly. The only way to avoid them is either to sign a new contract or switch supplier before your end date. Purely Energy flags every client renewal at least 12 months ahead of the end date.

Can I switch business electricity supplier mid-contract?

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Generally no. Business electricity contracts are legally binding for the full term you sign for, and exiting early usually triggers termination charges that wipe out any saving. The window to switch is after you receive your renewal notice, typically 6 to 12 months before your contract end date. Micro businesses have protections under the Ofgem Microbusiness Strategic Review, including simpler contract terms and a cooling-off period on telephone sales. Half-hourly (HH) sites can typically switch with 30 days notice once in the renewal window.

How long is a typical business electricity contract?

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Business electricity fixed-price contracts typically run for 1 to 5 years. Shorter terms (1 to 2 years) let you retender more often if wholesale prices fall; longer terms (3 to 5 years) lock in certainty and usually secure a lower unit rate because suppliers price in less near-term risk. Large I&C sites often prefer flex contracts of up to 7 years to give the trading desk room to hedge across multiple forward seasons. See our <a href="/products/fixed">fixed</a> and <a href="/products/flex">flex</a> product pages for more.

Does my meter type affect my electricity rate?

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Yes. The three main profile classes are non-half-hourly (profile classes 1 to 4 and 5 to 8), advanced meter (AMR) and half-hourly (HH). Sites with peak demand above 100 kVA are required by Ofgem rules to have a half-hourly meter, and the half-hourly consumption data lets suppliers price much more accurately. Smart meters (SMETS2) also remove estimated billing. The availability of capacity and settlement data at your site typically makes a 1 to 2p/kWh difference to the quoted rate.

Do smart meters change my business electricity rate?

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A smart meter does not change your unit rate or standing charge directly, but it does remove estimated bills by sending half-hourly or daily reads to your supplier. SMETS2 smart meters work across all suppliers, while older SMETS1 meters can lose smart functionality when you switch, reverting to manual reads until the national DCC upgrade completes. Market-wide Half-Hourly Settlement (MHHS), mandated by Ofgem, is rolling out across all non-HH meters between 2025 and 2027 and will eventually make half-hourly data standard on every supply point.

What happens if I pay an electricity bill late?

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Most business electricity suppliers charge late payment interest from the day after the bill due date, and can issue a disconnection warning after 28 days. Interest rates vary by supplier but typically sit at 8% above Bank of England base rate for statutory late commercial payments. Repeat late payment also damages your credit rating with energy suppliers, which will push up the rate you are quoted at renewal. If you are struggling, contact your supplier early; most will agree a payment plan.

Can I cancel a business electricity contract?

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Once signed, a business electricity contract is legally binding for the full term. Micro businesses have a 14 day cooling-off period on contracts sold over the phone, introduced under the Ofgem Microbusiness Strategic Review. Outside that window, cancellation before the end date almost always triggers termination charges. The right to cancel applies only at the contract end date, during the switching window your supplier is required to confirm in your renewal notice.