Are business electricity prices going up?

Energy price calculation spreadsheet

Are business electricity prices going up?

Every single business has outgoings that need to be addressed. Costs of building a company and running it efficiently can take a toll on how things go overall, so each business owner needs to carefully consider how much they’re spending. 

Electricity is a key element that needs to be looked into financially as it can really burn a hole in the pockets of micro, small, and medium-sized businesses. Business energy is an area that companies are always looking to save money in as it can really do a number on them over time if they aren’t careful. 

In this post, we’re going to figure out if business electricity prices are going up. We want to get to the bottom of these costs as we compare business energy and look at the prices for businesses up and down the country. 

What Are You Paying As Of Today? 

Thanks to comparison sites and other resources online, we’re able to see the averages with regard to the electricity use and the rates per kWh. At this moment in time, microbusinesses are using between 5,000 and 15,000 kWh per year. Small businesses at between 15,000 and 25,000. Medium businesses are 25,000 and 50,000. In terms of the rates, the average prices and standing charges vary slightly, but these small differences make a big difference in the long term. According to a variety of sources, including MoneySuperMarket: 

Microbusinesses: the smallest of businesses are paying an average price of 14.4p-15.9p per kWh. They receive a daily standing charge of 23p-29p. This works out at around nine-hundred to two thousand pounds per year.

Small businesses: small businesses are paying around 14.3p-15.1p per kWh and being charged between 23p-28p on a daily basis. Using 15,000 from 25,000 per year, this amounts to around two-thousand, three hundred pounds to four thousand pounds. 

Medium businesses: finally, with regard to medium businesses, an average annual usage of 25,000-50,000 kWh has a price of 14.3p-14.7p and a standing charge of 23p-27p. These businesses spend a much larger and much broader amount – they’ll spend between four thousand and seven thousand pounds per year. 

How Does It All Compare To The Past Few Years?

Each year, we’ve seen a slight rise in the average price. All comparison sites and sources have been able to gather enough information, and the statistics are showing that they’re rising a lot more for the smaller businesses compared to the largest and most prominent names around. Ten years ago, we saw around twelve pence per kWh, so we’re seeing a rise of around 0.3p per year. The same can be said for the small and medium-sized business, too – although they had a lower starting price. 

Conclusion 

We’ll end this post by quickly running through the significance and ramifications behind the prices rising in such a way. They may not be a huge issue as of yet, but they look as though they’ll continue to rise further over the years, so as a business owner, you’ll need to keep that well and truly in mind. While the daily prices are small and seemingly insignificant, they can add up slowly over time and catch you off-guard, so comparing the market and finding the best deal for your company is paramount. 

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