Business electricity rates in the UK: what shapes your price per kWh
Ask three businesses what they pay for electricity and you'll get three different answers. And at least one will say 'it depends'. (They're right. Annoyingly.)
So what actually shapes a business electricity rate? And how do you know if the one you've been quoted is a good one? We'll take it from the top.
How are business electricity rates worked out?
Your rate has two parts:
Unit rate: the price you pay for each kWh of electricity you use, in pence
Standing charge: a fixed daily amount, whatever you use. We explain it in full in our standing charge guide.
On top of that, VAT and Climate Change Levy may apply to your bill.
| What shapes your rate | How it affects your price |
|---|---|
| Where your business is | Some network costs vary by region, so the same usage can cost different amounts in different places. |
| How much you use | Your annual usage (in kWh) is a key input to your quote. Bigger and smaller sites are priced differently. |
| Your meter type | The kind of meter at your site can affect the tariffs available. |
| Contract length | Locking in for longer can mean more certainty. Shorter contracts mean you can shop around sooner. |
| Fixed or variable | Fixed rates stay the same for the whole term. Variable rates can change at any time. |
| When you use energy | On time-of-use tariffs like Shape Shifters, energy is cheaper outside the 4-7pm peak. If you can shift usage, you can cut your costs. |
| Government charges | Some charges are set by government and passed through supplier bills. How a supplier handles them can change the rate you see. |
Why do business electricity quotes differ between suppliers?
A few reasons, and not all of them are innocent:
Unrealistic rates. Some suppliers offer rates that aren't sustainable. Sometimes it's new suppliers chasing instant growth. Other times it's established suppliers trying to 'tease and squeeze'. We aim for great value in a consistent way instead
Hidden costs. Some suppliers leave certain charges out of new quotes and add them to existing contracts later. That makes the quote look cheaper than it'll end up
Brokers and comparison sites. They tend to charge suppliers for finding customers. Suppliers often roll that into the rate. We only sell directly, so there's no commission hidden in ours.
100,000+ businesses powered by Octopus
0 brokers or comparison sites between us and you
6 pricing principles we publish and stick to
How do I find out what my business electricity rate would be?
Your rate is personal to your site and usage. So the only way to see it properly is to get a quote. With Octopus it takes seconds: enter your postcode, pick your address and we show you your rates for a range of tariffs. Start at our homepage.
How do I know if a rate is a good one?
Work out the annual cost for each quote: (unit rate x annual kWh) + (standing charge x 365)
Check whether VAT, Climate Change Levy and any additional costs are included
Ask whether the rate can change mid-contract
Look at the supplier too: Trustpilot rating, how easy they are to contact and what perks they offer
Our guide to comparing business energy quotes walks through this with a free scorecard.
Prices moving around lately? Read what the Middle East conflict means for your business energy prices.
Here's how we keep your business' prices fair
We follow 6 pricing principles, from selling directly to never adding hidden fees to your bill.
Business energy prices, explained
A deeper look at what goes into your business energy bill.
Your business energy questions, answered
It depends on your site, usage and contract. The best way to judge is to compare the annual cost of each quote, not just the unit rate. Our comparison guide shows how.
Business and home energy are priced and billed differently, and different taxes can apply.
Our help article explains how to know if your business qualifies for reduced VAT and CCL.
On a fixed contract with Octopus, no. We don't change your rate during the term, and we don't add extra fees. On a variable contract, yes.
We only sell directly, with no brokers or comparison sites, so all customers get our best deals. Your own rate still depends on your site, usage and contract.
A deemed rate is what you can be charged if your contract ends and you carry on using energy without choosing a new one. Our deemed rates are the same as our standard variable rates.
Curious what your business rate would be?
Get your instant quote from Octopus Energy for Business. Fair, transparent pricing with no brokers and no hidden fees.
We power over 100,000 businesses.
Our business customer base reached 100,000 in early 2026 - and we've continued growing since.
We're rated 4.9 out of 5 (Excellent) on Trustpilot.
Head to our Trustpilot for up-to-date ratings and reviews.
No brokers, no hidden fees.
We don't work with energy brokers. You won't find us on price comparison websites. That means there's no commission or third party charges hidden in your rates. It's one of our pricing principles that keep your rates fair.
Our pricing is transparent.
When you sign up, we show you exactly what you'll be paying for. Our bills do this too.
We also have guides to help you understand your energy prices better, like this one.
With us, your fixed price is just that: fixed.
We don’t change it during your contract term. We don’t sneak on extra fees. It's one of our pricing principles that keep your rates fair.
You can get a quote in under a minute.
Our data shows that business customers get an online quote in 44.1 seconds, on average.
Here's how we worked it out:
We measured the duration of a big sample of online user journeys from 1/6/26 to 16/7/26
We excluded business portfolios that are complex, multi-site or extremely high-consuming
The timer started when a user reached the Quote page, before putting in any details
The timer stopped when they saw the first set of tariff quotes
We calculated the average time from start to stop as 44.1 seconds
You can sign up in under 10 minutes.
Our data shows that, for 20% of SMEs, signing up online takes less than 10 minutes.
Here's how we worked it out:
We measured the duration of a big sample of online user journeys from 1/6/26 to 16/7/26
The timer started when a user reached the quote page, before putting in any details
The timer stopped when they reached the success page, meaning the sign-up was complete
We calculated that 20% of SMEs did the whole process within 10 minutes
We give customers award-winning service.
Octopus Energy has won loads of awards for customer service. In fact, we're the UK's most awarded energy supplier.
Octopus Energy is Britain's biggest supplier, trusted by over 8 million homes.
You can find all the data here.
We show you exactly what goes into your bill
Our bills are itemised, so you can see how much of the cost comes from usage and other charges.
They also direct our customers to these even more detailed explanations, if they're interested.
1 in 3 small businesses don't realise that energy brokers get paid commission.
This is based on a May 2026 YouGov survey with 1034 UK SMEs.
'Small businesses' refers to the micro-business segment, which represents c.95% of total UK SME businesses (source: UK Parliament).
We lobbied the government to regulate brokers and now they're doing it.
Check out our campaigns for a better broker system, including the success we've had so far.
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Pete McNally
Content Manager at Octopus Energy For Business