How to get the best business electricity rates?

Article posted

12th Jan 2026

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4-8 min read

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Resolve Energy

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By Resolve Energy | Last Updated: 12th January 2026

Finding a competitive business energy deal isn't as straightforward as switching your home provider. In the commercial sector, there is no "dual fuel" safety net, meaning gas and electricity must be managed as separate, strategic contracts.

In a 2026 market defined by complex new levies and shifting transmission costs, expert procurement isn't just a time-saver—it’s a financial necessity to protect your bottom line.

Why is it important to compare business electricity rates?

By actively comparing the market rather than rolling over into a renewal, businesses can save up to 45% on their annual energy expenditure. With the introduction of new government levies and infrastructure charges this year, the gap between the best market rates and "out-of-contract" rates has widened significantly.

How much do UK businesses pay for electricity in 2026?

Note: These figures have been updated for January 2026 to reflect the recent hike in non-commodity levies and the new TNUoS transmission costs.

The amount your business pays is no longer just about your lightbulbs and machinery. Based on current market averages, here is what UK businesses are typically paying:

 

Micro Businesses (Annual Usage: 10,000 kWh) The average annual bill now falls between £2,850 and £3,050. This is driven by a unit rate of approximately 27.8p per kWh and a daily standing charge of around 58p.

Small Businesses (Annual Usage: 23,000 kWh) Small businesses are seeing annual costs between £6,100 and £6,600. The average unit rate for this bracket is roughly 26.5p per kWh, with daily standing charges averaging about 75p per day.

Medium Businesses (Annual Usage: 50,000 kWh) Medium enterprises face annual bills ranging from £13,200 to £14,500. While unit rates are lower (averaging 25.8p per kWh), fixed costs are higher, with daily standing charges often reaching £1.45.

Large Businesses (Annual Usage: 100,000+ kWh) Large-scale operations typically see annual bills starting from £25,500. These businesses secure the most competitive unit rates (averaging 24.1p per kWh) but carry the heaviest burden for grid infrastructure, with standing charges often exceeding £2.60 per day.

 

Why the 2026 market is different: RAB and TNUoS

If you are comparing these rates to a contract signed two years ago, the increase is likely due to two specific 2026 factors:

  1. The Nuclear RAB Levy: A government-mandated charge of roughly 0.39p per kWh added to every bill to fund new nuclear infrastructure.

  2. The TNUoS Spike: Transmission Network Use of System charges cover the National Grid's pylons and cables. Due to massive green-energy grid upgrades, these costs have nearly doubled for 2026, which is why your standing charge is likely much higher than in your previous contract.

 

What contributes to your commercial energy costs?

Beyond the national levies, several factors influence your specific quote:

  • Industry Type: Energy-intensive sectors like manufacturing or construction face higher base costs but may be eligible for specific relief schemes.

  • Business Size: Larger businesses with half-hourly (HH) meters can often access bespoke, lower rates due to their high volume of usage.

  • Location: Your postcode determines your Distribution Network Operator (DNO). Areas further from generation hubs often face higher delivery charges.

  • Market Volatility: The wholesale market fluctuates daily. Timing your renewal during a market dip is the most effective way to lower your unit rate.

Securing the Right Contract: Strategy Over Luck

Finding the best electricity deal in 2026 requires more than just comparing today’s unit rates. To secure a contract that actually protects your profit margins, you must balance three critical factors: current price points, future market forecasts, and supplier reliability.

Without a strategic approach, businesses often fall into common traps:

  • The "Out-of-Contract" Trap: Letting a contract expire can land you on "deemed rates," which are often 35% higher than negotiated rates.

  • The "Fixed vs. Pass-Through" Dilemma: In 2026, some "fixed" contracts still allow suppliers to pass through rising TNUoS or RAB charges mid-term.

  • The Variable Risk: Choosing a variable rate tariff means your prices fluctuate with the wholesale market—a high-risk strategy in the current climate.

More Than Just a Quote: Expert Energy Management

Securing a competitive rate is only the first step. At Resolve Energy, we go beyond simple comparisons to provide a comprehensive end-to-end service:

  • Market-Leading Procurement: We leverage our deep supplier relationships to access bespoke rates and exclusive deals not available on the open market.

  • Total Contract Lifecycle Management: We monitor your account for the duration of your contract, ensuring every bill is accurate and every term is met.

  • Billing & Dispute Resolution: Our experts handle the entire resolution process with suppliers on your behalf, saving you hours of administrative stress.

  • Regulatory Guidance: From navigating the new RAB levy to optimizing costs against TNUoS increases, we ensure your business remains cost-effective.

Stop juggling complex energy data and start focusing on your business. Let Resolve Energy provide the clarity and expertise you need to stay ahead.

If you're looking to save money on your business gas bills then why not get in touch today? The close relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business gas rates available for your company right when you need them. Request a free quote today and start saving money on your energy.

Looking to pay less on your energy bills?

Get a free quote today