Cheapest Business Energy Companies In UK – Explained

The situation in the UK business energy market is challenging right now. Wholesale energy prices are high due to geopolitical tensions, global supply constraints, and the ongoing war in Ukraine. This means businesses are paying way more for electricity, making it hard to make ends meet.

On average, businesses are paying around 34.6 pence per kWh for electricity in 2023. This has forced energy companies to raise their prices, making it even harder for businesses to afford their bills. This whole situation needs to be more sustainable.

Businesses need help, and they need it fast! One way to help is for them to find the cheapest energy deals possible. Businesses can get better deals and lower their energy bills by comparing prices. This is crucial for them to stay in the game and compete in this challenging market. Now, let’s discuss the cheapest business energy options and more.

Top 5 Cheapest Business Energy Companies in the UK

The cheapest business energy companies in the UK vary depending on the type of energy (gas or electricity), the contract length, and the green energy options. However, here are the 5 cheapest business energy companies in the UK:

1. Octopus Energy

Well-suited for all business sizes with its competitive prices, strong customer service, and flexible options.

Strengths

  • Cheapest tariffs: Octopus consistently offers the most competitive prices.
  • 100% renewable energy: Committed to providing clean energy, aligning with environmentally conscious businesses.
  • Transparent pricing: No hidden fees ensure precise and predictable bills.
  • Award-winning customer service: Renowned for prompt and helpful support.
  • Smart meter installation: Encourages energy efficiency and cost-saving.
  • Flexible contract options: Cater to different business needs and preferences.
  • Dedicated business account manager: Provides personalized support and guidance.

Weaknesses

  • Exit fees: May apply if breaking the contract early.
  • Limited availability: Only available in some regions.

2. E.ON Next

Ideal for small and medium businesses with its online convenience and affordability.

Strengths

  • Competitive pricing: Offers attractive tariffs, often with significant savings.
  • Excellent customer service: Known for responsive and efficient support.
  • Range of contract options: Fixed-price and variable contracts to suit different risk appetites.
  • Online account management: Convenient platform for managing energy bills and usage.
  • Smart meter installation: Encourages energy efficiency and cost-saving.
  • Energy efficiency advice: Provides valuable resources to help businesses reduce consumption.
  • Large business expertise: Offers tailored solutions for larger enterprises.

Weaknesses

  • Not the greenest option: Not all tariffs are 100% renewable, potentially conflicting with sustainability goals.
  • Customer service can be inconsistent: While generally excellent, some users report occasional delays or issues.

3. British Gas Lite

Suitable for small and medium businesses with high electricity consumption and a focus on budget.

Strengths

  • Cheapest electricity prices: Offers the most competitive rates for electricity consumption, ideal for businesses with high electricity use.
  • Simple switching process: Quick and easy online platform for switching suppliers.
  • Fair and transparent prices: No hidden fees or complex terms.
  • Flexible contract options: caters to various business needs.
  • Good customer service: Generally receives positive reviews for responsiveness and helpfulness.

Weaknesses

  • Not the cheapest for gas: Electricity-focused pricing may not be ideal for balanced consumption.
  • Limited renewable options: Not all tariffs offered are renewable, potentially limiting green credentials.

4. ScottishPower

Perfect for medium and large businesses with balanced energy needs and complex energy requirements.

Strengths

  • Best for combined gas and electricity: Offers the most competitive combined tariffs, ideal for businesses with balanced energy consumption.
  • Fixed-price contracts: Provides stability and predictability in energy costs.
  • Online account management: Convenient platform for managing bills and usage.
  • Smart meter installation: Encourages energy efficiency and cost-saving.
  • Considerable business expertise: Offers tailored solutions for larger enterprises with complex energy needs.

Weaknesses

  • Customer service can be inconsistent: While generally good, some users report occasional delays or frustrations.
  • Limited renewable options: Not all tariffs offered are renewable, potentially limiting green credentials.

5. EDF Energy

Ideally caters to larger enterprises with its established reputation, diverse options, and dedicated account management for complex needs.

Strengths

  • Established and reliable supplier: Offers peace of mind with a well-known and trusted provider.
  • Competitive pricing: Offers attractive tariffs, often with significant savings.
  • Range of energy tariffs: Fixed-price, variable, and green options to suit different needs and priorities.
  • Online account management: Convenient platform for managing bills and usage.
  • Smart meter installation: Encourages energy efficiency and cost-saving.
  • Large business expertise: Offers tailored solutions for larger enterprises.

Weaknesses

  • Not the cheapest option: Prices may not be as reasonable as compared to other options.
  • Customer service can be variable: While generally good, some users report inconsistent experiences.

Note: The cheapest option for one business may be better for another. Consider your priorities and needs before making your decision.

Tip: Use comparison websites to compare prices and find the cheapest business energy deal.

Supplier Gas Price (p/kWh)(£) Electricity Price (p/kWh)(£) Gas Standing Charge (p/day)(£) Electricity Standing Charge (p/day)(£) Estimated Average Annual Cost (£) Tariff EBRS Discount (p/kWh)(£)
Octopus Energy 3.24 18.50 27.0 26.0 1,080 Fixed 3.52
E.ON Next 3.40 19.00 28.0 27.0 1,130 Fixed 3.60
British Gas Lite 3.35 19.50 29.0 28.0 1,160 Variable 3.64
ScottishPower 3.38 19.25 28.5 27.5 1,145 Fixed 3.61
EDF Energy 3.45 19.75 30.0 29.0 1,190 Fixed 3.68

Notes

  • This table is based on information available in October 2023. It’s a good idea to check prices and plans from different suppliers before you decide.
  • The estimated average annual cost is based on typical business usage and may vary depending on your consumption.
  • The EBRS discount (Energy Bill Relief Scheme) is a temporary government support scheme that applies to eligible businesses from October 2023 to March 2024. The discounted wholesale price of gas and electricity leads to lower business bills.

Factors to Consider when Choosing a Business Energy Company

Choosing the right business energy company requires careful consideration, and here are some of them:

Cost

Check prices from different companies on sites like Uswitch and MoneySupermarket. Consider contract length and potential exit fees, as more extended contracts offer lower rates but less flexibility. Choose between a fixed rate or a variable rate based on how much risk you’re comfortable with and if you prefer stable or possibly changing costs.

Green Credentials

Choose companies that offer 100% renewable energy if your business wants to be eco-friendly. Even if it’s not 100% renewable, choosing options with green tariffs shows your commitment to clean energy.

Business Needs

Pick a company that suits the size of your business and how much energy you use. Look for providers that give you flexible contracts to fit your needs and consider smart meters to see your energy use in real-time and save money.

Customer Service

Check online reviews to evaluate customer experiences and favor companies with quick and helpful support. Consider the benefit of dedicated account managers for personalized assistance, especially for larger businesses.

Additional Factors

Understand potential exit fees before committing and choose the supplier’s convenient payment options. Explore providers that offer extra services like boiler servicing or energy audits for added value.

Tips for Reducing Business Energy Costs

Here are some tips to reduce energy costs for your business:

Low Effort

  • Switch energy supplier: Compare prices and find the best deal.
  • Replace incandescent lightbulbs with LEDs: Save energy and money.
  • Account for your carbon: Offset your emissions and make a positive impact.
  • Ditch filament bulbs: Upgrade to LED or halogen for better efficiency.

Moderate Effort

  • Conduct an energy audit: Identify and address areas of high energy use.
  • Adjust HVAC settings during off hours: Save energy when your business is closed.
  • Switch off idle appliances: Reduce energy consumption from phantom power.
  • Seal air leaks: Prevent energy loss and maintain comfortable temperatures.

Higher Investment

  • Install timers and smart controls: Optimize equipment usage.
  • Upgrade to smart thermostats and LED lighting: Achieve substantial cost savings.

Note: Even small changes can significantly impact your energy expenses.

Conclusion

Picking the cheapest energy company for your UK business can be tricky because prices are high. Companies like Octopus Energy, E.ON Next, British Gas Lite, ScottishPower, and EDF Energy are good choices. Choose based on prices, green energy, your business needs, and customer service.

Check where your business is, how much energy it uses, and what type of plan you want. Small changes, like using LED bulbs, can help you save money. So, choose what’s best for your business, and consider what matters most to you!

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