Business Energy

Business energy prices explained

Business energy bills look complicated because they bundle wholesale power, network delivery, environmental levies and supplier margin into a handful of line items. Once you know what each part is doing, comparing quotes becomes straightforward.

8 min readUpdated Jul 2026
Key points
  • Unit rate + standing charge are the two numbers that matter most
  • Wholesale energy is only ~60% of your unit rate — the rest is regulated
  • Always compare quotes at the same kWh consumption and contract length
  • A cheap headline rate can hide expensive pass-through charges

What actually sits on your bill

Your quarterly bill is built from two headline numbers — a unit rate charged per kWh you consume, and a daily standing charge you pay whether you trade or not. Around 55–65% of the unit rate is wholesale energy; the rest is network use-of-system charges, policy costs, and your supplier's margin.

Why prices move each quarter

Wholesale gas and power prices are set day-ahead on European markets and feed into fixed-price offers roughly six to twelve months later. Cold snaps, storage levels and interconnector flows all shift the number a supplier will quote you today.

Fixed vs variable — which suits you

A fixed contract locks your unit rate for 12–36 months, which suits businesses that want predictable budgeting. A variable or pass-through tariff tracks the wholesale market and can be cheaper in falling markets, but it removes budget certainty.

Getting a like-for-like comparison

Ask every supplier to quote the same annual consumption figure (kWh), the same contract length, and to break out unit rate, standing charge and any pass-through elements separately. That is the only way to compare apples with apples.

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