Best Business Electricity Rates: 5 Smart Ways to Compare

What are the best business electricity rates?

The best business electricity rates are the ones that suit your contract type, your usage and your renewal date, not simply the lowest number on a quote. A low unit rate on a contract that rolls over at a higher price is not much of a bargain.

Nobody can hand you one universal figure for the best business electricity rates, because business electricity is priced to the business: your size, your usage and when you sign all change the price. What you can do is learn how the contracts work and ask the right questions. Leaving your electricity to roll over without a look is the Do-Nothing Default, and it can leave you on higher rates. This guide uses Ofgem’s own advice for businesses, read on 3 November 2026.

What types of business electricity contract are there?

Ofgem lists several types, and suppliers may not offer all of them. Knowing which one you are on matters before you hunt for the best business electricity rates.

A fixed rate contract fixes the unit rate and standing charge for the length of the contract, so the cost per kWh stays the same whatever happens to wholesale prices. A variable rate contract can go up or down during the term, perhaps as wholesale prices move. Neither is automatically the best business electricity rates option, because it depends on how much price risk your business can carry.

A deemed contract starts automatically if you move into new premises without arranging a contract, or if your supplier goes out of business. Out of contract rates apply if a fixed term ends without a new deal. Ofgem says both are usually more expensive than a fixed term contract.

A rollover or evergreen contract renews itself at the end of a fixed term if you have not made a new arrangement. Ofgem says the new term is usually 12 months and may be on a higher rate. Flexible contracts, which Ofgem says suit large businesses using a lot of energy, let a company buy energy in smaller portions.

How do you compare the best business electricity rates fairly?

Compare the whole cost, not one line. A quote has a unit rate per kWh and a standing charge, and you need both. Ask whether the price you are shown includes VAT, so you compare like with like.

Then look at the length of the contract, any fees agreed in special clauses, and what happens at the end. Ofgem says to check whether a contract will renew automatically, or move you onto out of contract or deemed rates. That end of contract rule is where a cheap looking deal can turn expensive, and where the best business electricity rates on paper can stop being the best in practice.

It also helps to know your usage. Ofgem says the contract you can get usually depends on your size and how much energy you use. Look at a year of bills before you ask for quotes, so you compare on the same figures.

What protections apply when you chase the best business electricity rates?

Protections depend on the size of your business. Ofgem says a microbusiness has fewer than 10 employees and a turnover or balance sheet total of no more than £2 million, or uses up to 100,000 kWh of electricity a year.

Ofgem and Citizens Advice both say a business can also count as a microbusiness if it uses no more than 293,000 kWh of gas a year. Citizens Advice’s microbusiness guide.

If you qualify, Ofgem says your supplier must give clear information about your contract and provide renewal price information before your contract ends. For evergreen contracts it must limit termination notice to 30 days and acknowledge a request to end the contract within five working days.

Microbusinesses and small businesses can get help from Citizens Advice, and help with unresolved supplier complaints from the Energy Ombudsman. If you work from home, Ofgem says you are probably on a domestic contract, so check with your supplier. The household price cap does not help here: Ofgem says you are not protected by it if you have a business energy contract.” with “The household price cap does not apply to business energy contracts.

Should you use a broker to find the best business electricity rates?

You can arrange a business contract yourself, or use a broker, consultant or comparison service. Ofgem says brokers charge for their services. Some charge an upfront fee, but most are paid a commission by the supplier you choose.

Ask who is paying and how much. Ofgem says to check whether a contract price includes broker fees or commission, and that a broker paid by a supplier must belong to an approved redress scheme. It points to the Energy Ombudsman broker register and the list of accredited Utilities Intermediaries Association members.

For comparison sites, Ofgem says to check which suppliers are included, whether the whole market is compared, and whether the site receives commission.

There is no cooling off period after you agree to a contract, which is why checking first matters. Our business energy renewal checks and guide to fixed, variable and flexible tariffs explain what to look at before your contract ends, and our post on business electricity bills covers recent figures.

You can read the advice on Ofgem’s page on business energy contracts.

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Frequently asked questions about the best business electricity rates