When are prices per kWh used on an energy bill?
There are all sorts of costs that go into making up your monthly energy bill, but when shopping around for a new business gas or business electricity tariff, there are two costs you should pay particular attention to:
- Unit cost - the price you pay for each unit of electricity (measured in kWh) your business uses
- Standing charge - a daily charge that covers the maintenance of the national grid, and the cost of transporting electricity directly to your business premises.
If you switch to a deal that offers lower unit costs and standing charges, you’ll be well on your way to saving money on your gas bills and electricity bills. To find out more about what makes up your business energy bills, check out our guide to business energy bills.
How to compare business energy costs per kWh
One of the major barriers business owners face when it comes to switching to a new energy deal is the time it takes to compare business electricity prices. Not only do you need to get a separate quote for gas and electricity, but the only way to make sure you’re on the best rates is also to compare the standing charges and business electricity prices per kWh from each individual supplier – a far cry from the relative ease of simply choosing from a set of predefined tariffs when switching domestic energy.
It’s not all bad news though, as this bespoke service means you can be safe in the knowledge your tariff will be suited to the consumption needs of your business. And comparing business energy with Uswitch for Business means you’ll save both time and money, as our energy experts can quickly compare commercial gas prices per kWh to find you a better deal in minutes.
A quick call is all it takes to compare quotes from a range of suppliers to find out who has the cheapest electricity per kWh for your business. But before you get in touch, it’s a good idea to know roughly how much energy a business the size of yours should be using, and how much it can expect to pay.
The table below shows the industry average electricity and gas cost per kWh, as well as standing charges, based on business size.
Average electricity price per kWh and usage figures
| Business size | Annual usage | Unit price per kWh | Daily standing charge |
|---|---|---|---|
| Microbusiness | 5,000-15,000 kWh | 29.5p | 51.9p |
| Small business | 15,000-25,000 kWh | 29.3p | 73.4p |
| Medium business | 25,000-55,000 kWh | 27.0p | 223.7p |
| Large business | 55,000 kWh+ | 29.0p | 79.1p |
Note: Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from August 14 to August 18, 2023. Rates do not include any Energy Bills Discount Scheme discount.
Average gas rate per kWh and usage figures
| Business size | Annual usage | Unit price per kWh | Daily standing charge |
|---|---|---|---|
| Microbusiness | 5,000-15,000 kWh | 10.1p | 46.9p |
| Small business | 15,000-30,000 kWh | 9.6p | 59.0p |
| Medium business | 30,000-65,000 kWh | 10.4p | 95.7p |
| Large business | 65,000 kWh+ | 11.2p | 57.2p |
Note: Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges quoted by Bionic per business size from August 14 to August 18, 2023. Rates do not include any Energy Bills Discount Scheme discount.
Large businesses, or those with high energy demand, are metered and billed differently to smaller or less energy-intensive operations. For more information, check out our energy guide for large businesses.
If you’re paying above the average prices for electricity or gas per kWh, there’s a good chance you could cut your business gas bills and electricity bills by running a business energy comparison.
What can affect your business energy cost per kWh?
The cost per kWh you pay can vary between business energy suppliers. When designing your business energy quote, suppliers first assess the circumstances of your business by looking at things like energy consumption and business location. Gathering this information enables them to know more about your energy needs and will determine the cost of your quote and the cost per unit (kWh) you’ll have to pay for the energy that your business is using.
When assessing and designing your business energy costs, a supplier will look at:
The industry that your business operates in
The size of your business
The number of fuels you are being quoted for
Your current business energy supplier
The location of your business
The length of contract that your business requires.
Outside of the factors given above, the energy cost per kWh can also be impacted by factors outside of your control and the control of your supplier. For instance, the wholesale cost of gas and electricity (the price your supplier pays for the energy it supplies to your business) can be affected by anything from natural disasters to political events and conflicts.
How to get the best price per kWh for your business energy
It’s easy to assume that the cheapest gas or electricity tariff will be the best deal for your business, and while getting the cheapest possible deal is always a priority, if the supplier you choose isn’t the best fit for your business, you could run into problems further down the line, which could lead to a disruption in your supply, or even see you paying more than you budgeted for.
How to cut your business energy costs
Making sure you're on the best rates is one way to cut costs, but it also helps to be more energy efficient. There are several ways to improve the energy efficiency of your business, from fitting double glazing to simply making sure you switch things off. Here are some cost-cutting measures you can put into practice to help lower the price of your business energy bills:
Switch off all non-essential appliances - when you're done for the day, or even if you're not using equipment for a prolonged period, get into the habit of switching things off instead of leaving them running unnecessarily. Even leaving equipment on standby can waste energy and money
Switch to energy-efficient lighting - this will come with an initial cost, but fitting energy-efficient light bulbs can really make a difference to the amount of energy you use and the cost of your bills. It's also important to make sure light fittings and bulbs aren't dusty or dirty as this affects the amount of energy they use
Block up draughts - use draught excluder seals or tape to cover gaps in doors and windows and stop hot from escaping and cold air from seeping in
Unblock heat sources - having furniture or filing cabinets in front of heaters can stop heat from circulating properly and leave your premises cold. Even having curtains draped in front of radiators can have an effect. So make sure there's clear space in front of all heaters as much as possible
Get the temperature right - normal working environments should be between 16°C and 19°C, so try to keep heat within this range and limit the number of people that can access the thermostat. It might also be a good idea to put the heating on a timer to make sure it's only ever used as needed. If you run a cafe or restaurant, bear in mind that the temperature might need to be a little warmer for customers - around 20°C is usually enough
Keep equipment maintained - all equipment must be regularly maintained to make sure it's working as well and as efficiently as possible. This includes everything from computer monitors to fridges, freezers, and cookers. It’s also important to get regular services for the boilers in your workplace (ideally, once a year) so you can be sure they’re working properly and are fit for purpose.
How Uswitch business energy comparison works
Your comparison is free.
If you decide to switch, we’ll be paid a commission by the new supplier that is included in the prices we quote.
We find your details
Just enter your business address and we'll use industry data to accurately find and understand your energy usage.
We talk through your quotes
One of our UK-based experts will search our supplier panel and give you a call to talk you through the results on screen.
You choose the deal you want
With all the information to hand, you choose the deal that best suits your business and we'll handle the switch for you.
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