What are the Current Business Electricity Rates in the UK? (2026)
Discover the current business electricity rates in the UK for 2026, including average prices, the key factors driving costs, and practical ways to reduce your energy bills.
Following the 90% surge in electricity costs between 2021 and 2024, commercial electricity rates in the UK remain a huge concern for businessowners navigating the ongoing “energy crisis”.
Despite temporary freezes and modest reductions, electricity rates are still around 75% higher than pre-2021 levels, placing sustained pressure on cash flow and long-term growth.
As we enter 2026, many business owners are asking: “What are the current business electricity rates in the UK, and is there any way to pay less?”
In this article, we break down the latest pricing, explain what influences your rate, and outline how your business can secure the best possible deal.
Breaking down the current business electricity rates in the UK requires looking at four key factors. These factors include:
Without knowing your business, it’s impossible to know what exact rate you can expect to pay. However, we can still establish a rough average based on the last quarter of 2025. These average rates across Q4 in 2025 looked like this:
Micro Business – 25.8p/kWh – 10,000 kWh average annual electricity usage
Small Business - 26p/kWh – 20,000 kWh average annual electricity usage
Medium Business – 26.3p/kWh – 40,000 kWh average annual electricity usage
Large Business - 25p/kWh – 55,000 kWh average annual electricity usage
Based on these rates, the average annual bill forbusinesses based on size and subsequent consumption is:
Micro Business – £2,794
Small Business –£5,456
Medium Business – £11,040
Large Business – £14,706
As we can see, despite larger businesses paying more overall, micro businesses are being charged almost double, with a significantly higher pence per kilowatt per hour.
Where your business is based will significantly influence your commercial electricity rates. From regional variations in distribution network costs to population density and infrastructure efficiency, various dynamics will either increase or decrease your rate depending on where you’re located.
The current business electricity rates in the UK will also differ depending on the type of contract you have.
For example, a fixed-rate contract locks in your unit price (per kWh) and standing charge for a specific term, typically between one and three years. A fixed-term contract offers stability and allows you to budget with confidence, as your rate will not fluctuate during the agreed period.
If no new agreement is put in place when that fixed term ends, your business will usually move onto a variable-rate contract. These are often referred to as “out of contract” rates. You generally cannot actively choose these in the same way as a fixed deal. They come into effect when a contract expires, and nothing is agreed upon.
Out-of-contract rates are typically significantly more expensive. They allow suppliers to adjust pricing in line with the market and are designed as a temporary position rather than a long-term solution. For most businesses, they should be avoided wherever possible.
In short, securing a competitive fixed-term agreement before your renewal window closes is usually the most cost-effective approach.
Current business electricity rates in the UK also vary depending on your supplier.
UK suppliers set tariffs based on wholesale costs. These costs are influenced by the price of gas, supply and demand, and geopolitical situations.
Then, suppliers will factor in market competition with their own operational costs. All these things combined will ultimately dictate your rate.
It’s widely believed that the current business electricity rates will increase in 2026. The reason for these increases goes down to the Transmission Network Use of System (TNUoS) charges. These charges are based on installing and maintaining transmission systems in England, Wales, Scotland, and offshore.
National Grid has requested investment to modernise and transform the UK’s energy infrastructure to achieve a low-carbon future in the bid for net zero. This major investment in infrastructure has been granted by Ofgem, with consumers and businesses footing the bill.
We can expect to hear final price charges in January2026, with new charges taking effect in April.
The main reason why our current business electricity rates in the UK are so expensive doesn’t come down to electricity per se, but gas. The UK relies on gas to create electricity through power plants. Geopolitical issues such as the Ukraine war have disrupted gas supplies alongside limited gas storage in the UK.
All in all, the rise in the price of gas drives the price of electricity in the UK, compared to other European countries that depend on it less. While domestic consumers have been protected with caps, businesses are left exposed, especially after the Energy Bill Relief Scheme (EBRS) ended back in March 2023.
As an organisation in the UK faced with these current business electricity rates, it’s down to you to find the best deal possible. Despite the economic challenges and various other factors we’ve listed, at least competition between suppliers helps drive down the cost or stops it from increasing to the extortionate highs we saw between 2021 and 2024.
Ideally, the best option is to invest in green energy sources or generate your own energy. Renewables like solar power, biomass, or wind power eliminate your reliance on the grid. If installing these power sources is not possible or economically viable, you can still invest in suppliers offering a 100% renewable electricity tariff.
Whatever you decide, the important thing is to remember to shop around. Numerous comparison sites now exist to find the best current business electricity rates in the UK. Whether this means hiring a broker or consultant or finding the best deal yourself, the most important thing is to ensure you’ve searched for the best rates and you understand the details in your contract.
At GreenLight Consultancy Group, we’re dedicated to helping businesses find the cheapest electricity rates available.
We work with a wide range of trusted UK suppliers. Where it makes commercial sense, we actively recommend renewable energy options, but we are not limited to 100% renewable-only providers. Our priority is finding the right balance between cost, contract terms and sustainability for your business.
If renewable electricity aligns with your goals and budget, we’ll structure that into your agreement. If another option is more suitable, we’ll advise you transparently.
