Small business energy suppliers – compare 2024 tariffs

It’s never been more important to find the best energy price as small businesses battle with rising costs and a squeeze on profits. If you’re researching energy price suppliers and a new deal, we’ve done some of the legwork for you.

What types of energy tariff can you get?

If you’re considering switching business energy suppliers then you’ll first need to understand the different types of contract on offer:

• fixed rate – the unit price for your electricity and gas will stay the same throughout your contract (usually between one and three years but can be as long as five years)
• variable rate – as the name suggests, your energy tariff will vary (up or down) based on wholesale energy price
• green tariff – when your supplier matches the amount of electricity you use with renewable energy
• no standing charge – standing charge is the daily fee for supplying your energy, so tariffs with no standing charges mean you don’t pay this fee (but this can mean higher tariffs)

Business energy comparison guide

We’ve looked at business energy tariffs, green energy options, and customer feedback to find the best energy supplier for business owners.

Your business energy consumption and needs will be specific to your business, so it’s important to do your research. You’ll need to get a quote from each to find the best deal and tariff for you.

And as gas and electricity deals are usually treated separately for business energy customers, you’ll need to get a quote for each.

Below is a summary of some of the main business energy suppliers to consider.

Supplier	Business energy tariff	Green energy	Good to know	Trustpilot score
British Gas	Fixed rates for one to three years	Renewable energy plans available if you use more than 150,000 kWh of electricity or gas	One of the UK’s ‘big six’ energy suppliers	4.1
EDF Energy	Fixed rates for one to three years	Zero-carbon for business and 100% renewable contracts available for large businesses	One of the UK’s ‘big six’ energy suppliers	4.4
E.ON Next	Bespoke tariffs, including fixed options	100% renewable electricity on fixed business tariffs	Larger businesses are directed to npower Business Solutions. One of the UK’s ‘big six’ energy suppliers	4.3
Octopus Energy	Fixed 12-month tariffs with exit fee or variable contracts	100% green electricity for every customer	Offers a ‘No Standing Charge Tariff’ with no set daily payment amount	4.8
SSE	Fixed-price and flexible contracts	100% renewable electricity available	One of the UK’s ‘big six’ energy suppliers	1.7
Scottish Power	Fixed-price and variable contracts	Renewables for business available on fixed term contracts	One of the UK’s ‘big six’ energy suppliers	1.1
Utilita	Fixed price or variable contracts available	Doesn’t generate renewable electricity or buy directly from renewable generators (Which?)	Supply through smart meters	4.3

Who are green energy suppliers?

Green energy is generated from a renewable source such as wind or solar. You might consider a green energy supplier to make a more environmentally friendly choice, although this can mean higher tariffs.

Ovo Energy, Octopus Energy, EDF Energy, and British Gas are just a few examples of green energy suppliers.

If you’re interested in running a more sustainable business, we have a guide to implementing more environmentally friendly practices.

Another way to start is by measuring your environmental, social, and governance (ESG) factors – of which your energy usage will be a part of. And an ultimate goal can be achieving net zero in your small business.

Check out these tips for saving the planet from startup OLIO for some more inspiration.

Summary

Octopus Energy has far and away the best customer reviews when it comes to Trustpilot scores. They were also the overall customer satisfaction winner at the 2023 Uswitch Energy Awards.

You can compare current and historical tariffs with Octopus Energy by just putting in your business postcode. And with green electricity for all customers, they’re an environmentally-friendly option for your business energy too.

Can you switch energy supplier?

Yes, it’s possible to switch energy suppliers but this depends on your contract terms.

Small businesses may be able to switch if:

• your current contract is due to end soon (usually between one and six months)
• you’re moving to another commercial property
• you’re on a deemed rates tariff – these are 28-day rolling contracts that occur when you move business premises without agreeing a new deal with your energy supplier

It’s worth bearing in mind that exit fees can apply if you choose to leave your contract early. But according to Citizens Advice, this can’t be charged if your contract ends in seven weeks or less.

How to utilise comparison websites

Ofgem (Office of Gas and Electricity Markets) has a list of accredited comparison websites to help you find the best deal.

Uswitch for Business is one site you can use to compare tariffs. They also have annual awards for the best energy suppliers across a range of categories.

What’s happening with energy prices?

The global energy crisis has been affecting consumers and businesses alike since the end of 2021.

A range of factors have contributed to this, including higher demand after the coronavirus pandemic, cold weather in winter, and the Russia-Ukraine conflict.

However, the Office for National Statistics reports that electricity prices fell by 13 per cent in the year to January 2024.

Are energy prices going down?

Falling wholesale energy prices are reflected in Ofgem’s latest price cap for July to September 2024.

The energy regulator sets a price cap for domestic customers every quarter, and it’s down £122 from £1,690 in April to £1,568 in July.

While Ofgem only sets a price cap for consumer prices, there’s nothing in place for businesses. That said, if you run your business from home then you may well benefit from this as you’re unlikely to be on a business energy contract.

Support tapered off for small businesses with the end of the energy bill relief scheme in April and the energy bill discount scheme in April 2024.

However, the main challenge is that many businesses are locked into expensive, long-term contracts so high prices are likely to continue despite wholesale prices starting to fall.

7 steps to get the best business electricity rates

Here are seven tips for how to get the best business energy rates for your business:

1. Compare quotes from as many suppliers as you can.
2. Claim back the VAT on your energy bills if you’re VAT registered.
3. Negotiate with suppliers if you’re struggling to pay your bills.
4. Know your rights – you can switch if your contract is coming to an end within seven weeks (or sooner depending on your contract terms).
5. Avoid staying on rolling or deemed contracts – compare and research better deals as soon as you can.
6. Look for online deals – for example some suppliers offer online fixed for business contracts with the cheapest tariffs.
7. Select how you pay – paying by Direct Debit can mean cheaper tariffs as it’s cheaper for suppliers to administer.

Solar panels for business – are they worth it?

Generating your own electricity with solar panels on your business premises will reduce your energy bills. And some business energy suppliers offer special contracts if you’re selling electricity back to the National Grid.

However, there are setup costs to consider and the initial outlay of investing in solar could mean it’ll take a long while for you to see the benefits.

That said, you might be able to access solar panel grants for businesses to help with some of the costs. There’s not much out there currently but keep an eye on the government’s website for funding to help your business become greener.

Are you researching business energy suppliers and deals? Let us know how you get on in the comments below.

Small business guides and templates

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• How to budget – template for small businesses
• Cost of living support
• What type of business insurance do I need?

Photograph: DragonImages/stock.adobe.com