Running a business comes with daily challenges, but one thing that often slips through the cracks is comparing electricity rates. Many companies are unknowingly overpaying, even when cost-saving options are available. A proper business energy comparison can uncover lower rates and hidden contract issues that may be quietly draining your budget. Energy bills comprise a large part of operational costs, so it’s essential to examine every line on your bill and understand where you might be paying too much. In this guide, we’ll explore why businesses often overspend and how to take simple steps that could lead to serious savings.
Are You Paying More Than You Should for Business Electricity?
One of the biggest reasons businesses overpay for electricity is staying on the same contract for too long. Many companies stick with their current energy suppliers even after their fixed deal ends. This often moves them onto a standard variable tariff, which usually comes with higher prices. According to UK energy market data, switching to a cheaper fixed tariff could reduce bills by up to 25%, depending on your usage and region. And yet, most small businesses don’t switch in time, often missing their renewal window and falling into auto-rollover rates.
Another hidden factor is outdated usage habits. Without regular energy audits, it’s hard to see how much electricity is wasted during non-peak hours. Leaving machines on standby, inefficient lighting, or poor insulation in the business premises can cause unnecessary spending. A basic business energy audit can highlight areas for improvement and help identify energy-saving opportunities. Even small changes, like installing motion sensor lights or upgrading appliances, could bring measurable results in monthly bill payments.
The High Cost of Sticking to the Same Supplier
Staying with your old supplier out of habit can be expensive. Some suppliers rely on customer inaction, knowing many businesses won’t review their contracts regularly. Without comparison, companies won’t see the list of available energy deals or understand how much they could save with a new supplier. One report found that businesses that perform a yearly energy comparison save up to £1,200 annually.
Importance of Reviewing Electricity Tariffs
Many types of electricity tariffs exist, such as fixed, dual fuel, prepayment, etc. Each comes with different pricing models, contract lengths, and exit fees. Understanding these details matters because choosing the wrong tariff for your usage habits can lead to higher energy bills. A fixed energy deal may provide price certainty and help you budget more accurately, especially during energy price hikes.
Smart Meters Are a Must
A smart meter is more than just a fancy device. It provides real-time data about your energy use, helping you make better decisions. These meters also take automatic meter readings, which means no more estimated bills or disputes. Businesses using smart meters have seen up to a 15% drop in electricity usage because they could finally track and adjust their habits in real-time.
Comparing Energy Prices Can Save You Thousands
Running a business energy comparison should be part of your yearly routine. Doing this helps you compare energy deals side by side, making it easy to find the most suitable tariff based on your size, industry, and annual usage. The energy market changes quickly, and prices often rise due to wholesale costs, environmental charges, and political changes. Keeping an eye on these changes allows you to switch soon.
- Example: A bakery using 35,000 kWh yearly cut its electricity costs from £6,300 to £4,850 after comparing and switching to a new electricity supplier.
Understand Peak Hours and Standing Charges
Electricity used during peak hours tends to be more expensive, so it’s helpful to understand your usage pattern. Some suppliers offer time-of-use tariffs that charge different rates depending on when you use energy. Also, don’t ignore standing charges, which are fixed daily fees just for being connected to the grid. These can vary depending on the supplier switching and significantly impact small business users’ electricity bills.
Pay Attention to Contract Details
Every business should read the small print of their energy contract. Is there a legal requirement for notice? Are there exit fees? What happens at the end of your contract—do you automatically roll into a standard variable tariff? These questions are essential. Also, many businesses don’t realise that if they don’t switch suppliers on time, they may not be eligible for the final bill refund if they’ve overpaid.
Conduct a Business Energy Audit
If you haven’t done a business energy audit this year, now’s the time. This process identifies wasteful practices and areas of cost savings. A professional audit often includes checking for energy waste, reviewing energy usage history, and finding potential savings with modern systems. It’s also the first step to meet energy efficiency goals and apply for some government rebates or incentives.
Hidden Opportunities to Save on Energy Bills
Here are a few often-overlooked strategies to save energy and money:
- Switch to energy-efficient LED lighting across all business premises
- Install a smart meter to track your exact usage
- Adjust work hours to reduce use during peak hours
- Encourage staff to power down non-essential equipment
- Request a business energy quote from multiple suppliers to compare options
- Ask your electricity supplier about discounted dual-fuel packages
Average Business Electricity Costs by Size (2024 UK Stats)
| Business Type | Average Usage (kWh/year) | Average Bill (per year) | Cheapest Fixed Tariff (per kWh) |
| Micro (1-9 employees) | 5,000 – 15,000 | £1,500 – £3,000 | 23.1p |
| Small (10–49) | 15,000 – 30,000 | £3,100 – £5,400 | 21.8p |
| Medium (50–249) | 30,000 – 65,000 | £6,000 – £11,300 | 20.7p |
Based on market stats and supplier rates.
Final Words
Most businesses can lower their energy bills by simply checking what they’re paying and comparing options. Contracts change, prices shift, and usage habits evolve, so conducting a regular business energy comparison could be the easiest step toward long-term savings.
FAQs
How often should I compare electricity deals for my business?
Every 6 to 12 months is ideal. Frequent comparisons help you avoid automatic rollovers into costly variable tariffs and find better energy rates from suppliers.
What if my landlord pays the business electricity bill?
You can still ask for access to the energy data or recommend a business energy audit to improve efficiency. Some landlords are open to switching if it lowers everyone’s bills.
