Business electricity fixed rates per kWh UK: what you’ll actually pay

Understand how UK business electricity fixed rates per kWh are priced, what changes them (even on a “fixed” contract), and how to compare like-for-like before you sign.

  • Clear explanation of unit rates, standing charges, and contract terms
  • Two realistic cost scenarios (with assumptions) to sense-check quotes
  • Simple form to request whole-of-market business quotes (no obligation)
Get your business electricity quote How fixed pricing works

Rates vary by meter type, usage, region, payment method and credit checks. This guide explains the moving parts so you can compare quotes fairly.

Fast answer: business electricity fixed rates per kWh UK

Business electricity fixed rates per kWh UK are the unit prices you agree with a supplier for a set contract term (often 1–5 years), and they’re quoted in pence per kWh. The most important number is the total cost, not just p/kWh, because standing charges, VAT, meter type and pass-through items can still change what you pay.

Key takeaway 1

A “fixed” business contract usually fixes the unit rate and sometimes the standing charge, but other elements may be variable depending on contract terms.

Key takeaway 2

To compare fairly, ask each quote for: p/kWh, standing charge, contract length, VAT %, and any uplifts/fees.

Key takeaway 3

Your rate depends heavily on your meter type (e.g. smart/AMR/HH), annual usage, profile, payment method and credit checks.

Note: This page explains how pricing works and how to avoid common comparison mistakes. For exact current unit rates and standing charges for your business and postcode, use the quote journey.

What a fixed business electricity rate includes (and what it doesn’t)

A fixed-rate business electricity contract is designed to give you predictable pricing over an agreed term. In practice, “fixed” can mean different things depending on the supplier and the way your contract is written.

Unit rate (p/kWh)
The price you pay for each kilowatt hour you use. This is the headline figure people focus on, but it’s only one part of your bill.
Standing charge (p/day)
A daily fee covering fixed costs of supplying your premises. Some contracts fix this for the full term; others may treat certain elements as pass-through.
VAT
Many UK businesses pay VAT on energy at 20%, but some may qualify for a reduced rate (commonly 5%) depending on eligibility. Your quote should state the VAT basis used.
Contract term & end date
Common terms are 12, 24, 36, 48 or 60 months. Longer terms can reduce exposure to market changes, but may come with higher exit fees and less flexibility.

Important: Many business contracts can include variable or pass-through elements (wording varies). Always request the full written quote and terms, not just a headline p/kWh.

Why your business unit rate changes

Suppliers price business electricity based on risk and cost to serve. Two premises in the same town can be offered different p/kWh because of how and when they use energy.

  • Meter type: non-half-hourly (NHH), AMR, smart, or half-hourly (HH) metering
  • Consumption: annual kWh and expected peaks
  • Load profile: daytime-heavy vs evening/weekend usage
  • Region & network costs: distribution area charges vary across the UK
  • Payment method: direct debit vs other payment arrangements
  • Credit factors: time trading, company structure, credit checks, deposits/guarantees
  • Contract length & start date: market conditions change daily

Best “like-for-like” comparison

Compare quotes with the same: contract length, payment method, VAT assumption, meter type, and estimated annual usage. If any of these differ, the p/kWh alone won’t be a fair comparison.

Get fixed-rate business electricity quotes (whole of market)

If you want exact p/kWh and standing charges, the quickest route is to request quotes using your business details. We’ll use your usage and meter information to help you compare options that are actually available for your premises.

What you’ll need

  • Business postcode
  • Contact details
  • Estimated annual kWh (if you have it)
  • Meter details (MPAN / meter type) if available

What you’ll see in quotes

  • Unit rate (p/kWh) and standing charge (p/day)
  • Contract length and start date options
  • Any required deposit/credit terms (where applicable)
  • Key contract notes (e.g. renewals and termination windows)

Tip: If you have a recent bill, keep it nearby. Even one page is usually enough to confirm meter type and avoid mismatched quotes.

Request your quote

Start your comparison

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How to compare fixed rates per kWh (without getting caught out)

A good comparison makes sure every quote is built on the same assumptions. Use the table below as a checklist when you’re reviewing fixed-rate offers.

What to compare Why it matters What to ask for
Unit rate (p/kWh) Drives the bulk of your variable cost. Is the unit rate fixed for the full term? Is it single-rate or does it vary by time/use pattern?
Standing charge (p/day) Can outweigh small p/kWh differences for low-usage sites. Is the standing charge fixed? If not, what parts can change and when?
Contract length Longer terms reduce repricing frequency but reduce flexibility. 12/24/36/60 months options, and whether prices differ by term.
Meter type HH/AMR/smart/NHH can change how suppliers price your usage risk. Confirm the quote matches your meter setup (or planned upgrade).
Estimated annual usage Quotes based on unrealistic kWh can look cheaper than they’ll be. Which annual kWh figure was used, and what happens if you use more/less?
Fees & contract terms Exit fees and renewal windows can be costly if missed. Termination notice window, deemed/rollover rates, and early termination charges.

Quick decision checklist: fixed rate suits you if…

  • You want budget stability for the next 1–3+ years
  • You can commit to a term and can plan around renewal windows
  • Your usage is predictable enough to avoid unpleasant surprises
  • You prefer simplicity over trying to time the market

Fixed rate may not suit you if…

  • You might move premises, close, or change trading pattern soon
  • You’re uncomfortable with potential exit fees
  • Your usage swings widely month-to-month
  • You’re actively managing risk and can monitor pricing frequently

Two realistic cost scenarios (with assumptions)

The examples below show how p/kWh and standing charge combine into an estimated annual cost. They are not market rates and are provided to help you sanity-check quotes.

Scenario A: small office (low usage)

Assumptions: 12,000 kWh/year, single-rate, standing charge 60p/day, unit rate 26p/kWh, VAT excluded for simplicity.

  • Unit cost: 12,000 × £0.26 = £3,120
  • Standing charge: 365 × £0.60 = £219
  • Estimated annual total: £3,339 (before VAT and any other charges)

Why it helps: on low usage, a higher standing charge can erase a “better” p/kWh.

Scenario B: small workshop (higher usage)

Assumptions: 85,000 kWh/year, standing charge 75p/day, unit rate 23p/kWh, VAT excluded for simplicity.

  • Unit cost: 85,000 × £0.23 = £19,550
  • Standing charge: 365 × £0.75 = £274
  • Estimated annual total: £19,824 (before VAT and any other charges)

Why it helps: as usage rises, p/kWh differences dominate—so it’s vital your annual kWh estimate is accurate.

Assumptions and limitations: These scenarios ignore potential pass-through items, capacity/reactive charges (where applicable), billing fees, and any differences in VAT eligibility. Real quotes can vary significantly by meter type, profile class, and region.

Costs, exclusions and common pitfalls (UK business energy)

Fixed-rate quotes can look similar on the surface, but these are the areas that most often cause unexpected cost or frustration.

1) Renewal & notice windows

Business contracts can have a defined termination window. Missing it may roll you onto a new arrangement you didn’t intend. Always diarise end dates and notice periods once you sign.

2) Exit/early termination fees

Leaving early (or changing circumstances) can trigger fees. Ask for the exit fee wording in writing and consider whether your business may move premises or change structure.

3) Usage estimate mismatch

If the quote assumes 10,000 kWh but you use 30,000 kWh, the “annual cost” comparison becomes meaningless. If you don’t know usage, use a bill or your smart/AMR data.

4) Metering and data quality

Incorrect MPAN, wrong meter type, or missing reads can lead to re-quotes, delays or estimated bills. Confirm your details early—especially if you have HH metering.

5) VAT assumptions

Quotes may be shown excluding VAT, including VAT, or with different VAT eligibility assumptions. Ensure you compare on the same VAT basis and confirm what your business should be paying.

6) “Fixed” doesn’t always mean everything is fixed

Depending on contract wording, some elements can be variable over time. If a quote is significantly cheaper, ask exactly what is fixed and what can change.

If you’re a microbusiness, you may have extra protections around contracts and complaints. Ofgem and Citizens Advice explain how microbusinesses are defined and what support is available.

FAQs: business electricity fixed rates per kWh (UK)

What is a fixed business electricity rate per kWh in the UK?

It’s the unit price (pence per kWh) you agree to pay for electricity for a set contract term. Your bill will also include a standing charge and usually VAT, and some contracts may include other variable or pass-through elements depending on the written terms.

Are business electricity rates covered by the Ofgem price cap?

Generally, no. The Ofgem price cap applies to most domestic customers on standard variable tariffs, not typical business energy contracts. Business prices are usually set by the market and your contract terms, so you need to compare quotes for your meter and usage.

Do fixed business electricity contracts include standing charges?

Most do, because the standing charge covers fixed costs of supplying your site. Whether the standing charge itself is fixed for the whole term depends on the quote and contract wording—so always request both the unit rate and standing charge in writing.

What information affects my business electricity unit rate the most?

The biggest drivers are your annual kWh, how your usage is spread across the day/week, your meter type (NHH/AMR/smart/HH), your location (distribution region), payment method, contract length, and credit factors. Quotes built on different assumptions won’t be directly comparable.

Can I leave a fixed business electricity contract early?

Sometimes, but you may face early termination or exit fees, and the process depends on supplier terms. If you think you may move premises or close during the contract, ask for the exit fee wording before signing and consider shorter terms.

What’s the difference between business electricity and domestic electricity pricing?

Business electricity pricing is typically contract-based and tailored to your meter and consumption profile, often with negotiated fixed terms. Domestic pricing is more standardised and many households are on capped standard variable tariffs. Business bills can also be more sensitive to metering and usage shape.

How do I compare two quotes if one has a lower p/kWh but a higher standing charge?

Convert each quote to an estimated annual total using the same annual kWh and the standing charge × 365 (plus VAT if you’re comparing inc. VAT). For low-usage sites, a higher standing charge can outweigh a lower unit rate, so total-cost comparison is essential.

How quickly can I switch to a fixed business electricity rate?

Timelines vary based on contract end dates, any cooling-off/objection windows, and whether meter details are confirmed. A common cause of delay is incorrect MPAN or meter data, so having a recent bill and accurate business details can speed things up.

Trust, methodology and sources

Editorial details

How we assess “fixed rates per kWh” for UK businesses

We don’t publish live p/kWh figures on this page because business prices change frequently and depend on premises-specific details. Instead, we focus on helping you compare quotes correctly and avoid common errors.

  • Assumptions: Quotes are only comparable when meter type, annual kWh, VAT basis, contract length and payment method are aligned.
  • Limitations: Supplier availability, credit outcomes, and contract wording can materially change results; always verify the written offer.
  • Examples: Our scenarios use simple arithmetic (kWh × unit rate + 365 × standing charge) to illustrate total-cost thinking, not to represent market pricing.

Sources and official guidance

  • Ofgem (UK energy regulator) for market rules, consumer protections, and price cap context
  • Citizens Advice energy supply guidance for practical help and complaints routes
  • GOV.UK for VAT and business guidance (eligibility depends on circumstances)

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Updated on 3 Aug 2026