Business energy unit rates vs standing charges UK
Understand what you’re really paying for electricity and gas: the per-kWh unit rate and the daily standing charge. Compare whole-of-market business tariffs with EnergyPlus and get a quote that suits your usage pattern.
- See how unit rates and standing charges affect your monthly bills
- Compare whole-of-market business energy deals in minutes
- Switch at contract end, mid-contract (where possible), or for a new premises
- Support for microbusinesses, SMEs, multi-sites and landlords
No obligation. Quotes based on your meter type and usage. Switching timelines and availability vary by supplier.
Get business energy quotes based on unit rate and standing charge
A headline unit rate (p/kWh) can look competitive, but the standing charge (p/day) may make the total cost higher for your site. EnergyPlus compares whole-of-market business tariffs so you can judge the overall cost—not just a single number.
Tip: Low-usage sites (e.g., small offices, intermittently used units, seasonal businesses) often benefit more from a lower standing charge, while high-usage sites typically feel unit-rate changes more strongly.
What you’ll need (takes ~2 minutes)
- Business postcode and trading name
- Electricity MPAN and/or gas MPRN (recommended)
- Estimated annual usage (kWh) or a recent bill
- Contract end date (if switching)
Prefer to learn first? Jump to unit rates vs standing charges and then come back to compare.
Looking for a more accurate comparison? Include your MPAN/MPRN and annual kWh when you speak to our team—this helps us benchmark unit rates and standing charges for your meter type and profile.
Why unit rates vs standing charges matter for UK businesses
Total cost depends on your usage
Two tariffs can swap places depending on kWh used. A lower unit rate can be outweighed by a higher daily standing charge (and vice versa).
Standing charges apply even when closed
If your premises are quiet overnight, between tenants, or seasonal, you’ll still pay the daily charge—so it’s crucial to compare properly.
Some meters have different pricing bands
Tariffs vary by region, meter type (e.g., HH vs NHH), and profile. A “cheap” rate for one site may not be cheap for another.
Easier budgeting and forecasting
Knowing which component drives your bill helps you forecast costs and choose fixed or flexible arrangements with confidence.
Better decisions at renewal time
At contract end, suppliers often roll businesses onto higher deemed/out-of-contract rates. A quick comparison can reduce exposure.
Supports multi-site optimisation
Different sites can have different load patterns. Comparing unit rates and standing charges per meter helps optimise across locations.
Unit rate vs standing charge: what’s the difference?
Business energy unit rate (p/kWh)
The unit rate is what you pay for each kilowatt-hour (kWh) of electricity or gas your business uses.
- Higher usage = unit rate matters more
- May differ by day/night (e.g., certain electricity tariffs)
- Varies by contract length, supplier, region, and meter type
Business energy standing charge (p/day)
The standing charge is a fixed daily cost to keep your premises connected and to cover network, metering, and administration charges.
- Charged daily—even if you use no energy
- Can be significant for low-usage or vacant periods
- May differ between electricity and gas meters at the same site
In practice, your best deal is usually the tariff with the lowest total annual cost for your consumption profile—not necessarily the lowest unit rate.
Quick check: If you’re a low-usage business, a standing charge difference of 20p/day is ~£73/year (per meter). Across multiple meters, this adds up.
How business energy bills are calculated (simple examples)
To compare unit rates and standing charges properly, convert them into an estimated monthly or annual cost. Here’s the basic method:
- Estimate your consumption (kWh/month or kWh/year) for electricity and/or gas.
- Multiply usage by the unit rate (p/kWh) to get variable cost.
- Add standing charge (p/day × number of days) to get fixed cost.
- Compare totals across suppliers and contract terms.
| Example | Unit rate | Standing charge | Assumed usage | Estimated annual cost* |
|---|---|---|---|---|
| Tariff A (lower unit rate, higher standing) | 26.0p/kWh | 80p/day | 12,000 kWh/year | £3,120 + £292 = £3,412 |
| Tariff B (higher unit rate, lower standing) | 27.5p/kWh | 45p/day | 12,000 kWh/year | £3,300 + £164 = £3,464 |
| Same tariffs at higher usage | A vs B | A vs B | 60,000 kWh/year | A: £15,600 + £292 = £15,892 B: £16,500 + £164 = £16,664 |
*Illustrative examples only. Actual business energy pricing varies by supplier, meter type (e.g., HH/NHH), region, profile class, consumption, and contract terms. Prices shown exclude VAT and other bill components that may apply.
How to reduce unit rates and standing charges (practical actions)
Reduce your unit rate impact
- Time your renewal: start comparing before contract end to avoid higher out-of-contract/deemed pricing.
- Match contract length to risk: fixed contracts can protect budget; flexible options may suit larger users with procurement strategies.
- Improve your load profile: move non-urgent usage away from peaks where possible; consider overnight loads if appropriate.
- Check meter suitability: ensure your meter type aligns with your usage; errors can mean poor tariff fit.
Manage standing charge exposure
- Review low-usage sites: for small offices, kiosks, storage units or seasonal premises, standing charges can dominate.
- Avoid unnecessary meters: where operationally appropriate, consolidate supplies or close redundant accounts (subject to landlord/network constraints).
- Handle void periods correctly: if a unit is vacant, you may still pay standing charges—plan ahead and ensure billing is correct.
- Multi-site benchmarking: compare per-meter costs; a higher standing charge can be less painful at high usage, but costly at low usage sites.
Need help quickly? Use the comparison form and we’ll identify whether unit rate or standing charge is driving your costs.
Common mistakes when comparing business energy pricing
Focusing only on p/kWh
A low unit rate can hide a high standing charge. Always compare the estimated total annual cost for your consumption.
Using the wrong usage estimate
If kWh is underestimated, a low standing charge can look better than it is. Use an annual figure from bills or smart/half-hourly data where available.
Ignoring meter type and profile
Half-hourly (HH) and non-half-hourly (NHH) sites price differently. Comparisons should reflect your meter details for accuracy.
Comparing inc/ex VAT inconsistently
Most business quotes are shown excluding VAT. Ensure you compare like-for-like, especially for microbusinesses eligible for different VAT treatments.
Leaving renewals too late
Late renewals can mean fewer options and exposure to higher rates. Start early and keep an eye on notice periods.
Not checking contract terms
Beyond rates, verify contract length, payment method, billing frequency, and any site-specific requirements before agreeing.
Regional and meter considerations in the UK
Why pricing differs by location
Business energy pricing can vary by region due to network costs and distribution areas. That’s why a quote for Manchester may not match a quote for Bristol—even with similar usage.
Meter types and profiles
Electricity MPAN details (including profile class) and whether your site is half-hourly metered can affect both unit rates and standing charges. Accurate meter information improves quote accuracy.
If you have multiple meters at one premises (e.g., landlord supply + tenant supply, or separate electric meters for different areas), compare each meter separately. Get quotes for all supplies to avoid overpaying on one.
FAQs: business unit rates and standing charges
Is it better to choose a low unit rate or low standing charge?
It depends on your consumption. High-usage businesses typically benefit more from a lower unit rate, while low-usage or seasonal sites often benefit more from a lower standing charge. The right approach is to compare the estimated total cost using your kWh usage.
Do businesses always pay a standing charge?
Most business electricity and gas tariffs include a standing charge. It’s usually charged per day per meter, regardless of consumption. Some bespoke arrangements may present costs differently, but the fixed component is commonly there.
Can my standing charge change during a fixed contract?
On a fixed contract, pricing is typically agreed for the term, but always check the contract wording and whether any pass-through elements apply for certain business supply types. We’ll highlight key terms when comparing.
What if my business has more than one site?
Multi-site businesses often have different usage patterns per location. Comparing unit rates and standing charges per meter helps you avoid cross-subsidising an expensive site. Use the form and tell us how many sites/meters you have.
Are business energy prices regulated like domestic?
Business energy is priced differently from domestic supply and is commonly contract-based. Rates vary by supplier, risk, meter type, and usage. Comparing whole-of-market options helps you find competitive pricing for your specific circumstances.
What details make quotes more accurate?
Your MPAN (electric) and/or MPRN (gas), annual kWh, meter type (HH/NHH), and contract end date. If you don’t have them, start with the form and we can guide you.
What businesses say about comparing with EnergyPlus
“We were focused on unit rate, but the standing charge was the real issue for one of our smaller sites. The comparison made it obvious.”
“Quick quotes and clear breakdown. We renewed before contract end and avoided going out of contract.”
“The team explained the difference between rates and charges without jargon. The switch was straightforward.”
Whole-of-market comparison: We compare business tariffs across a wide panel of UK suppliers, focusing on the rates and contract terms that best fit your usage.
Compare business unit rates and standing charges today
Get whole-of-market quotes tailored to your meter and usage—so you can choose the tariff with the best overall cost, not just the best headline rate.
- No obligation quotes
- Support for electricity, gas or dual fuel
- Helpful guidance for renewals and new connections
Have a bill to hand? Great—your MPAN/MPRN and kWh make results more accurate.
Back to Business Energy