Am I paying too much for business electricity?
Check your latest bill: most UK SMEs signing new fixed deals in 2026 pay roughly 22–30p per kWh plus a 45–65p daily standing charge. If your unit rate is meaningfully above that band, your contract is more than two years old, or you are on out-of-contract or deemed rates (commonly 35–45p/kWh), you are very likely paying too much — often by thousands of pounds a year.
Last reviewed 2 September 2026 by Utilities Made Simple · independent, whole-of-market, supplier-paid — how we are paid
The 60-second check
You need two numbers from your bill: the unit rate (pence per kWh) and the daily standing charge. Compare them here:
| Your situation | Typical unit rate, 2026 | Verdict |
|---|---|---|
| New fixed deal, standard meter | 22–30p/kWh | Market rate — competitive deals sit at the bottom of the band |
| Larger / half-hourly supply | 19–24p/kWh | Scale earns sharper pricing |
| Fixed 2+ years ago, never revisited | Varies widely | Worth a free check — the market has moved |
| Out-of-contract / deemed / rolled over | Commonly 35–45p+/kWh | Almost certainly overpaying — act this week |
Rates move with the wholesale market and depend on usage, postcode, meter type and credit profile — treat these as market ranges, not quotes. Figures reviewed 2 September 2026.
Five signs you are overpaying
- You do not know your contract end date. The businesses paying the most are almost always the ones that let a deal lapse. Our guide shows you how to find it in two minutes.
- Your bill says “deemed”, “out of contract” or “variable”. These are the most expensive rates in Britain — see Deemed & out-of-contract rates.
- You signed whatever the renewal letter offered. Renewal letters are priced on the assumption you will not shop the market.
- Your standing charge is north of 65p/day on an ordinary supply — network charges rose sharply in April 2026, but the spread between suppliers is wide.
- You pay 20% VAT but might qualify for 5%. Low usage, charity status or significant domestic use (care homes, student lets) all qualify — see VAT and CCL on business energy.
What overpaying actually costs
A business using 50,000 kWh a year that is 8p/kWh above the market is spending £4,000 a year more than it needs to — before VAT. On deemed rates the gap is often double that. The fix costs nothing and takes one phone call or one emailed bill.
How to find out for certain
Send one recent bill to our free bill audit. We benchmark your exact meters against the live 57-supplier market and give you a plain-English verdict, usually the same working day — including “your deal is fine, keep it” when that is the truth.
Common questions
What is a good business electricity rate in 2026?
For a standard (non-half-hourly) SME meter, competitive new fixed deals in 2026 sit roughly between 22p and 30p per kWh, with the sharpest deals near the bottom of that band. Larger and half-hourly supplies price lower per kWh. Anything materially above 30p deserves a check.
Why is my rate higher than a comparison site quoted?
Business contracts are individually priced on usage, postcode, meter type, contract length and credit profile — headline rates online assume the best case. A like-for-like comparison has to be priced to your actual meter.
Are business electricity rates higher than domestic?
Per unit they are broadly comparable in 2026 — the domestic price cap sits around 26p/kWh — but businesses pay 20% VAT (unless eligible for 5%), the Climate Change Levy, and have no price cap protection, so a bad business contract costs far more than a bad domestic one.
My contract has 12 months to run. Is it worth checking now?
Yes. Suppliers will price contracts starting up to 12 months ahead, so if today's market is favourable you can lock your next term in advance — and VAT or levy errors can be fixed mid-contract with refunds backdated up to four years.
Can you check gas and water too?
Yes — the same free audit covers gas (typical 2026 fixed rates roughly 6–9p/kWh) and business water, which has been open to competition across England and Scotland since 2017.
Not sure where you stand? Send us a bill.
Upload a recent bill and a specialist will check your rates, VAT, levies and contract end date against the live market — free, usually the same working day. Prefer email? Send it to info@utilitiesms.co.uk. If your deal is already good, we will tell you to keep it.