Average business electricity prices per kWh in 2026
In 2026, UK businesses signing new fixed electricity deals typically pay 22–30p per kWh for standard SME meters and 19–24p per kWh on larger half-hourly supplies, plus a daily standing charge of roughly 45–65p. Businesses on deemed or out-of-contract rates commonly pay 35–45p or more. Wholesale power sits near 9–10p/kWh; the rest is network charges, policy levies and supplier margin.
Last reviewed 2 September 2026 by Utilities Made Simple · independent, whole-of-market, supplier-paid — how we are paid
Benchmark table by business size
| Business size | Typical annual usage | Typical new fixed rate | Standing charge | Indicative annual cost* |
|---|---|---|---|---|
| Micro (café, small shop, small office) | 5,000–15,000 kWh | 24–30p/kWh | 45–70p/day | £1,400–£4,800 |
| Small | 15,000–30,000 kWh | 23–28p/kWh | 45–70p/day | £3,700–£8,700 |
| Medium | 30,000–65,000 kWh | 22–26p/kWh | 50–90p/day | £6,800–£17,200 |
| Large (non-half-hourly) | 65,000–100,000 kWh | 21–25p/kWh | 60p–£1.20/day | £13,900–£25,400 |
| Half-hourly / industrial | 100,000+ kWh | 19–24p/kWh | Bespoke + capacity charges | Priced to the meter |
*Unit costs plus standing charge, before CCL (0.801p/kWh) and VAT. These are market ranges compiled from new fixed contracts and broker market data, reviewed 2 September 2026 — every real quote is priced to your meter, usage, postcode and the market on the day. Where your bill sits against these bands tells you whether to act.
What makes up the price of a business kWh?
- Wholesale energy — around 9–10p/kWh in early 2026. It is the biggest slice and the one that moves daily.
- Network charges (DUoS and TNUoS) — carrying power to your premises. TNUoS rose steeply in April 2026, and most of that lands on standing charges, which is why daily charges are climbing even where unit rates are flat.
- Policy and levy costs — renewables obligations and capacity market costs, plus the Climate Change Levy itemised separately at 0.801p/kWh.
- Supplier margin and risk — including credit risk, which is why two identical businesses can be quoted differently.
Why the range is so wide
There is no price cap for businesses. Every contract is individually priced on annual usage, meter type (Half-hourly vs NHH meters), postcode region, contract length, payment method and credit profile. That spread is precisely why comparing matters: on the same day, for the same meter, the gap between the best and worst quote on our 57-supplier panel is routinely several pence per kWh — hundreds to thousands of pounds a year.
Fixed, variable, deemed — which are you on?
Fixed contracts lock the unit rate for 1–5 years and are the default for most businesses. Variable and flexible products track the market. Deemed and out-of-contract rates apply when no contract exists at all — after moving premises or letting a deal lapse — and they are the most expensive electricity in Britain: Deemed & out-of-contract rates.
How to beat the averages
Know your contract end date, go to market 3–6 months early, and price the whole market rather than signing the renewal letter. Or shortcut all three: send one bill to our free bill audit and we will show you exactly where you sit against these benchmarks.
Common questions
What is the average business electricity price per kWh right now?
For new fixed deals in 2026: roughly 22–30p/kWh for standard SME meters and 19–24p/kWh for larger half-hourly supplies, before CCL and VAT. Out-of-contract and deemed rates commonly run 35–45p or more.
What about business gas prices?
New fixed business gas deals in 2026 typically price around 6–9p/kWh with standing charges of roughly 25–45p/day. The same size, region and credit factors apply.
Why did my standing charge jump in 2026?
Transmission network (TNUoS) charges rose sharply from April 2026 and most of the increase is recovered through daily standing charges — so bills can rise even where consumption and unit rates are unchanged.
Are prices going up or down?
Wholesale power has settled far below the 2022–23 crisis peaks but remains well above pre-2021 levels, and network costs are rising. Rather than timing the market, fix when the price in front of you is one your budget is happy with — suppliers will price a start date up to 12 months ahead.
How do these compare with domestic prices?
The domestic price cap for July–September 2026 works out around 26p/kWh. Well-bought business rates undercut that, but businesses add CCL and usually 20% VAT, and carry no cap protection if a contract lapses.
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.