NO PRICE CAP • JANUARY 2026

Business Electricity: Save £3,000+ in 2026

UK SMEs overpay millions on electricity annually. With no price cap protection, comparing suppliers is your only defense against rollover tariff traps and volatile rates.

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£3,000+
Potential Annual Saving
0%
Price Cap Protection
80%
Rollover Tariff Overcharge
2-3 Years
Optimal Contract Length

Business vs Domestic Electricity: Critical Differences

Feature Business Electricity Domestic Electricity
Price Cap Protection ❌ No Protection ✅ Ofgem Price Cap
Negotiated Rates ✅ Yes, Especially for SMEs Rarely Available
Contract Length 1–5 Years (Flexible) 1–2 Years (Limited)
Rollover Risk High (30-80% Increases) Low (Protected)
Unit Rate Volatility Very High Moderate

Average Business Electricity Costs (2026)

Business Type Annual Electricity Cost Rollover Penalty Risk
Home Office
Sole Trader / Remote
£400 – £900 Can double
Small Retail Shop
Lighting / Till / HVAC
£1,200 – £2,500 +£1,000+
Café / Takeaway
Cooking / Refrigeration
£2,000 – £4,500 +£2,000+
Small Office (5-10 staff)
Computers / Servers / Lighting
£2,500 – £5,000 +£2,500+
High-Usage SME
Manufacturing / Workshop3-PHASE
£6,000+ +£3,000+

Rollover Electricity Contracts: The Hidden Cost Trap

If you don't switch before your contract ends: You're automatically moved to expensive "deemed" or "rollover" electricity rates. Unit rates can increase 30-80% overnight. Many businesses overpay for years without realizing. Electricity suppliers have no obligation to warn you about better rates.

Contract Length: How Long Should You Fix Electricity Prices?

1 Year

Short-Term Flexibility

Higher rates, easier to exit. Ideal if expecting major changes.

4-5 Years

Maximum Stability

Lowest rates, least flexible. Best for high-usage businesses.

What Actually Makes Business Electricity Cheap?

🔌

Low Unit Rates

The most important factor. A 3p/kWh difference can save £1,200+ annually for medium businesses.

📊

Fixed Pricing

Locked rates protect against wholesale market volatility and enable accurate budgeting.

⏱️

Sensible Contract Length

2-3 year contracts typically offer the best balance of price security and flexibility.

Total Annual Cost Matters

Ignore headline "cheap" offers. Compare total annual cost including standing charges and unit rates.

Special Business Electricity Considerations

🔋

Three-Phase Electricity

Required for heavy machinery, commercial refrigeration, and manufacturing. Fewer suppliers, but major savings possible with specialist comparison.

🌿

Green Electricity

In 2026, renewable tariffs often match standard pricing. Fixed green deals provide both sustainability and price stability.

📱

Smart Meters

Enable half-hourly billing and energy monitoring, but fixed pricing remains safest for most SMEs.

How to Compare Business Electricity Correctly

1

Gather Your Details

Business postcode, current supplier, contract end date, and annual kWh usage. Estimates work if exact data unavailable.

2

Compare Total Cost

Focus on total annual cost, not just unit rates. Include standing charges, contract length, and exit fees.

3

Secure & Switch

Choose a fixed-term contract matching your needs. New supplier handles the switch seamlessly in 2-4 weeks.

How Much Could Your Business Save?

Micro-businesses save £300–£700 | Small shops/offices save £800–£2,000 | High-usage SMEs save £3,000+

Stop Overpaying for Business Electricity

Compare genuine business electricity deals in minutes. Avoid rollover traps, secure fixed rates, and protect your profit margins.

No contact details required to view all tariffs. No obligation to switch.