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According to a study more than 90% of businesses in the UK are classified as small or medium enterprises. These micro-businesses make up the majority of businesses in the UK. These small businesses, however, do not share the luxury of hiring additional staff or managers to maintain their energy costs.

Micro businesses in turn begin to suffer losses once they compare business energy prices. This is where we come into the picture to help Micro businesses with their electricity bills and gas bills.

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What is a micro business?

There are many definitions of micro businesses. The most common one is a company that has fewer than fifteen employees and turns over less than £1.7 million a year. These definitions although muddled between different territories are much simpler when it comes to managing energy contracts. In the UK the energy regulatory body states that businesses that are classified as micro-businesses must abide by these rules:

  • They must consume less than 200,000 kWh of gas a year
  • They must consume less than 55,000 kWh of electricity a year
  • Must manage fewer than ten employees, partake in annual turnover and balance sheet that does not exceed the budget of € 2 million


Businesses that are not aware of how much energy they are consuming daily should immediately pursue a gas or electricity comparison website. Your energy consumption rate can be found through meter reads, locate your electricity meter to find the data you need. We can give you tips on how to read your energy meters as you most likely won't qualify for a half-hourly meter. You can also get in touch with your energy supplier for a better understanding.

Business owners need to constantly find solutions to their energy usage, ensuring they are constantly being energy efficient. These inevitably include saving costs by making operations more efficient. Micro-businesses find it hard enough to stay afloat in today’s competitive market, comparing theirbusiness'ss energy is a more daunting task.

To help your business operate without any obstacle we advise owners to do sufficient research to ensure they receive the best deals. With the most highly rated business electricity comparison websites compare different suppliers and tariffs online that fit your business requirements.

Before you start comparing different business energy quotes, it's a good idea to read our helpful guide. This will give you a better understanding of what to look out for when searching for competitive prices. We will state how commercial energy differs from residential and the necessary contracts needed for this process.


Business tariff V Domestic tariff

It is common for homeowners to switch their energy providers without a hitch, however, businesses don’t have it that easy. The initial comparison when it comes to switching business energy tariffs and other variables can make the process quite time-consuming.

For starters business, electricity rates are commonly cheaper than domestic rates as they run on two different energy markets. This makes it easier for businesses because they pay a lower unit rate but suffer losses if they terminate their contract too early.

Commercial contracts usually last for longer peperiodsrom three to five years regardless of particular fixed or variable rate tariffs. For as long as your contract is valid businesses cannot switch to a new tariff.

If you run your small business from home and want to switch from domestic energy to a business tariff, you could be eligible to get a better deal for your business. Read our blog about running your business from home for more details.


Business energy contracts can be tricky so make sure you have agreed to all of the terms before signing a contract. Business energy tariffs are not calculated together and so companies need to calculate their gas and electricity usage separately. However, there are some exceptions for businesses to compare their gas and electric rates through websites.

Difference between energy contracts

Business energy suppliers in the UK offer different contact types for all types of orgaorganizationssinesses to neto are aware of different tariffs and being overcharged. Here are the most common types of energy contracts:


  • Fixed-term- These contracts are charged according to a set price per unit for the entire duration of your contract. This means that your standing charge will stay the same each month. You will still be charged according to your levels of consumption.


  • variable rate- Depending upon the wholesale market prices businesses can be charged a specific unit rate. According to this standard, a business’s energy bill can increase and decrease according to the price fluctuations in the market.


  • Deemed rate- Considered as the most expensive rate that can be charged to businesses. Your business will automatically go onto this contract if you fail to negotiate a new deal before your current contract comes to an end.


  • Rollover- Failure to agree to new terms with your previous supplier before the expiration date will result in more expensive unit rates


  • 28-day- This contract type is for businesses that have not switched their business energy suppliers since the market was deregulated.


How much energy should my business be consuming?

Each business has its type of operations and functions that require different energy levels. Depending uponsizesizes of your business, type of production, and hours of operation your business will consume different levels of energy. The price you pay for your energy supply will be calculated through various factors such as:

  • contract type
  • size of the business
  • location
  • supplier
  • tariff
  • consumption.


How are my small business energy ?rates calculated

Gain a better understanding of how to compare different energy prices in the UK. Take into account the different factors that play a key role in how much you are charged. Carefully compare prices and energy suppliers to identify any problems or anomalies.


Micro-businesses electricity consumption is calculated based on these common factors:

  • Energy consumption- A common ideal, you will be charged according to the amount of electricity you period a given period.
  • Unit rate- The price agreed between your supplier and you are the unit rate you have to pay. Businesses agree to pay per kilowatt-hour.
  • Postcode- Depending upon your geographical area, different rates will be paid. A region Distribution Network Operator (DNO) tends to charge different amounts to suppliers for further distribution of electricity.
  • Standing charge- A fixed amount a business agreed to pay their supplier daily. These charges include the transportation of electricity as well. In the UK the average for small businesses is low but they can vary according to particular suppliers.
  • Period of billing- Businesses can choose to be billed monthly, quarterly, or yearly depending on the terms stated on their contract.
  • VAT- Standard businesses are required to pay a 20% VAT. Charities and non-profit organizations pay as little as 5%.
  • Discounts- For customers that offer on-time payments or via direct debit, suppliers are more inclined to offer discounts and other deals.

How to compare business electricity deals?

There is a sure quick and easy way to compare your business energy suppliers. This is a very easy process and only requires the preparation of a few documents. Start by having a copy of your most recently paid bill and head on to our comparison tool to start saving money straight away!


Begin by entering all the necessary details such as the type of business you run and the amount of electricity you consume. Then you will be shown a list of different deals and suppliers from which you can filter the best ones. Each option will state information about the suppliers, contact, and duration so you can make the best choice for your business. After a thorough analysis chooses the best business energy suppliers that meet you’re your requirements.

Switching suppliers for business

Oan once your contract has come to an end businesses can choose to either stay with their suppliers or, switch to other business suppliers. To make this process seamless make sure you have all your important information ready before you switch:


• The name of your current energy supplier

• The current tariff name and expiry date

• The type of energy you are currently being supplied with

• How much energy youthatnsume in kWh


Businesses who currently do not have a current bill to hand in can still search for a newer, better deal. Although it can be done we cannot promise that your free business energy quote will be that accurate.

We hope that this guide has been helpful and solved any queries or questionsswitchingave about comparing or switch your business energy suppliers. Once you have a better understanding of how the energy supplying business works you can come up with better solutions for your business.

Our strongest piece of advice would be to care of the terms and conditions on your contract with a new supplier. This process can be quite time-consuming and daunting so we hope to guide and ease the process whilst helping to reduce your costs.

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