Comparing commercial electricity offers is not the same as comparing household tariffs. Business supply is priced against your own usage profile, so the first job is to establish what that profile actually is.
Start with your own consumption
Your previous bills show annual consumption in kilowatt hours for each supply point. Use the same figure for every option you compare. If a quotation is built on an estimated consumption level and another is built on your billed usage, you are not comparing like with like and the difference between them may be an artefact of the assumptions.
If you do not have twelve months of bills, gather as many as you have and note the period covered. Seasonal businesses in particular can find that a summer-only picture understates their winter demand considerably.
Understand what sits behind the unit rate
A commercial electricity price normally combines several elements. The unit rate is charged for each kilowatt hour used, the standing charge covers the fixed cost of the supply, and some premises carry a capacity or availability charge linked to the maximum power the site can draw.
Two offers can show an identical unit rate and produce materially different annual costs once those other elements are included. Where a site has a half-hourly meter, the capacity element can be significant, and it is often the part of a quotation that receives the least scrutiny.
Check the terms, not just the rate
The commercial terms determine what happens at the end of the agreement and how much freedom you have during it.
- The length of the fixed term and whether the price is fixed throughout.
- The notice period required before the end date, and the last date on which notice can be given.
- Whether an early termination fee applies, and how it is calculated.
- What rate applies if the agreement runs past its end date without being renewed.
- Whether the contract covers every meter at the site or only some of them.
A contract that is cheap for twelve months but difficult and expensive to leave is not necessarily the best option for a business whose requirements may change.
Timing affects the options available
Suppliers generally have more appetite to quote when there is time before a contract ends. Leaving a renewal until the final fortnight narrows the field and, in some cases, removes the ability to move at all before the end date.
Recording the contract end date and working back from the notice deadline is a simple habit that prevents the most common and most expensive mistake in commercial energy: missing a notice window and continuing on rates that were never negotiated.
What to prepare before asking for a comparison
- A recent bill for each supply point, showing annual consumption and meter details.
- The site address and postcode for every meter.
- The business name that should hold the account.
- The current contract end date and notice terms if you have them.
- Any known changes to how the site will be used, such as new equipment or extended hours.
With those details in hand, a comparison can be prepared on a consistent basis, and any difference between the options can be explained in terms of price, term and risk rather than a single headline figure.
This guide is general information for UK households and businesses. It is not advice on your specific contract, and it does not replace the terms agreed with your supplier or the guidance published by regulators and network operators.