Best Business Energy Suppliers UK 2026 - Rates and Contracts

What UK businesses actually pay per kWh, by size (DESNZ, 1st quarter 2026)

The DESNZ Quarterly Energy Prices tables 3.4.1 and 3.4.2 show average prices paid by UK non-domestic consumers per kWh, by consumption size band: very small (under 20 MWh a year for electricity), small, small/medium, medium, large, very large and extra large. Figures include and exclude the Climate Change Levy, exclude VAT, and are fully delivered averages with standing charges spread across units. Published quarterly, the latest covers January to March 2026 (provisional); the next release is 29 September 2026. Use these market averages, not quotes, to compare a supplier offer.

Electricity

Gas

Source: DESNZ Quarterly Energy Prices, table 3.4.2, prices including Climate Change Levy and excluding VAT, pence per kWh, delivered averages across all UK non-domestic consumers in each band (standing charges spread across units). Latest quarter is provisional and revised in later releases; DESNZ notes an ongoing revision to the Electricity: Very Small series from Q4 2024. Next release 29 September 2026. Read on 20 September 2026.

The rules that decide a business energy bill

VAT: 20% or 5%

Business energy is standard rated at 20% VAT. A business using no more than 33 kWh of electricity a day (1,000 kWh a month) or 145 kWh of gas a day (4,397 kWh a month) is charged at the 5% domestic rate under the de minimis rules, automatically, and is then also exempt from the Climate Change Levy. Charities and mixed use premises can claim 5% on the qualifying share with a VAT declaration to the supplier.

Climate Change Levy

The Climate Change Levy is an HMRC tax on business electricity and gas per kWh, shown as a separate line on bills, and set each April. It is not charged on domestic use, on de minimis supplies, or where a Climate Change Agreement discount applies. The levy is additional to the unit price and VAT, so a full cost comparison uses the including CCL figures in the DESNZ tables.

Deemed and out of contract rates

Fixed contracts run one to five years and roll into an out of contract or deemed rate if no notice is given. Deemed and out of contract rates are typically far higher than negotiated rates and can be left at any time. Ofgem requires suppliers to publish deemed rates. A business can switch away from a deemed rate without exit fees, so checking the contract end date and notice period matters.

Ombudsman and broker rules since December 2024

Ofgem non-domestic reforms from 19 December 2024 extended complaints handling standards and the Energy Ombudsman from micro businesses (under 10 employees) to small businesses with fewer than 50 employees. Suppliers must show broker commissions and third party costs in contracts. Ofgem is consulting on directly regulating energy brokers and third party intermediaries. These rules apply to small business contracts and give clearer routes for dispute resolution.

Why supplier rankings differ

There is no official league table of business suppliers. Ofgem publishes non-domestic market share data; the largest suppliers by share are incumbent groups such as British Gas Business, E.ON, EDF, ScottishPower and Octopus, with specialists such as Crown, Valda, SmartestEnergy and TotalEnergies serving SMEs and larger sites. Comparison and broker sites rank suppliers by Trustpilot scores or by panel commission, which is why their lists differ. Read rankings as commercial or reputational views, not regulated market share.

Questions business owners ask

Who are the top 5 business energy suppliers in the UK?

There is no official league table. Ofgem publishes non-domestic market share data; the largest suppliers by share are incumbent groups such as British Gas Business, E.ON, EDF, ScottishPower and Octopus. Specialists such as Crown, Valda, SmartestEnergy and TotalEnergies serve SMEs and larger sites. Comparison and broker sites rank suppliers by Trustpilot scores or by panel commission, so their lists differ.

What is a good price for business electricity per kWh in the UK?

There is no single good price. DESNZ Quarterly Energy Prices tables 3.4.1 and 3.4.2 report average prices actually paid by UK non-domestic consumers per kWh, by consumption size band, including and excluding the Climate Change Levy, excluding VAT. In Q2 2025 the average non-domestic electricity price including CCL was 24.3p per kWh. The very small band pays materially more per unit than large users. Compare a quote against the relevant band.

Do businesses pay 20% VAT on electricity?

Business energy is standard rated at 20% VAT. A business using no more than 33 kWh of electricity a day (1,000 kWh a month) or 145 kWh of gas a day (4,397 kWh a month) is charged at the 5% domestic rate under the de minimis rules, automatically, and is then also exempt from the Climate Change Levy. Charities and mixed use premises can claim 5% on the qualifying share with a VAT declaration to the supplier.

Which business energy supplier do the comparison sites recommend?

Comparison and broker sites rank suppliers by Trustpilot scores or by panel commission, which is why their lists differ. There is no official league table of business suppliers. Ofgem publishes non-domestic market share data; the largest suppliers by share are incumbent groups such as British Gas Business, E.ON, EDF, ScottishPower and Octopus, with specialists such as Crown, Valda, SmartestEnergy and TotalEnergies serving SMEs and larger sites.

Can a small business take a complaint to the Energy Ombudsman?

Ofgem non-domestic reforms from 19 December 2024 extended complaints handling standards and the Energy Ombudsman from micro businesses (under 10 employees) to small businesses with fewer than 50 employees. Suppliers must show broker commissions and third party costs in contracts. Ofgem is consulting on directly regulating energy brokers and third party intermediaries. A small business with fewer than 50 employees can use the Energy Ombudsman.