How Much Can You Save By Switching Business Energy Suppliers?

How this calculator works

The calculator compares what your business currently pays for electricity and gas over a full year against what a typical business of your size could pay after switching to a competitive fixed contract. It uses the same simple structure as your energy bill: a unit rate charged on every kilowatt hour you use, plus a daily standing charge that you pay regardless of usage. Everything below explains each part of the tool in plain English.

Business size presets

The four size buttons pre-fill typical annual consumption figures for UK businesses, based on published averages: a micro business typically uses around 8,000 kWh of electricity and 10,000 kWh of gas a year, a small business around 20,000 kWh of electricity and 25,000 kWh of gas, a medium business around 40,000 kWh of electricity and 65,000 kWh of gas, and a large business 80,000 kWh of electricity and 150,000 kWh of gas or more. These are starting points only. Your real usage is printed on your annual statement or can be added up from 12 months of bills, and entering your actual kWh figures will always give a more accurate estimate.

Contract status

Your contract status makes a big difference to how much you can save. If you are mid-way through a fixed contract, you already know your exact unit rate and standing charge, so choose the first option and type them in from your bill. If you are coming up for renewal, the calculator pre-fills the current UK average rates paid by businesses. If you are out of contract, on deemed rates, or have recently moved into new premises, suppliers place you on default tariffs that are typically 30 to 50 percent more expensive than negotiated rates, and the calculator pre-fills higher figures to reflect that. Out-of-contract businesses usually see the largest savings from switching, and can switch at any time without notice.

Electricity unit rate and standing charge

The unit rate is the price you pay for each kilowatt hour of electricity, shown in pence per kWh on your bill. In mid 2026, UK businesses pay roughly 22p to 30p per kWh on fixed contracts, with the average sitting around 27p, while competitive switched deals for small and medium businesses start from around 24p. The standing charge is a fixed daily fee, typically 45p to 65p per day, that covers the cost of keeping your premises connected to the network. Both numbers appear on every bill, usually excluding VAT.

Gas unit rate and standing charge

Gas works the same way but is much cheaper per unit, because a kWh of gas costs far less to supply than a kWh of electricity. Typical UK business gas rates in 2026 sit between 6.5p and 9p per kWh, with the average around 7.8p and competitive switched deals from around 7.2p. Gas standing charges typically run from 25p to 45p per day. If your premises are electric only, untick the gas box and the calculator will ignore it completely.

How the saving is estimated

For each fuel, the calculator works out your current annual cost as your usage multiplied by your unit rate, plus 365 days of standing charge. It then calculates the same figure using typical competitive switched rates for a business of your size and takes the difference. The two coloured bars show your current cost against your estimated cost after switching, split by fuel, so you can see where the saving actually comes from. If your existing rates are already at or below the competitive market level, the calculator will tell you that rather than invent a saving.

What the estimate leaves out

The figures shown exclude VAT, which is 20 percent for most businesses or 5 percent for eligible microbusinesses, and the Climate Change Levy of around 0.78p per kWh, because both apply equally before and after switching and so do not change the saving itself. The estimate also cannot account for things that only show up in a real quote: your exact postcode and distribution region, your meter type, your credit profile, contract length, and any exit fees on your current contract. A real like-for-like quote is the only way to get exact figures, which is why the button under the results takes you to a live comparison.