Small Business Energy Comparison

How to compare small business energy quotes?

What type of SME is your business?

Before comparing small business energy suppliers, it’s essential to understand which category your business falls into. SME is an umbrella term referring to micro, small, and medium-sized businesses.

The type of energy contract you can secure, the level of protection you’re entitled to, and the support available may vary depending on whether your company is classified as a micro business, small business, or medium business.

Here’s a basic overview of the types of SMEs:

A micro business:

Typically has fewer than 10 employees
Has an annual turnover or balance sheet total of less than £632,000
Uses no more than 100,000 kWh of electricity per year or no more than 293,000 kWh of gas per year
Has a similar or slightly higher energy usage than that of a large household

A small business:

Employs between 10 and 49 people
Has an annual turnover or balance sheet total of less than £10.2 million
Uses no more than 200,000 kWh of electricity annually and 500,000 kWh of gas annually
Is likely to have higher energy demands than a micro business due to dedicated premises and equipment

A medium business:

Employs fewer than 250 people
Has an annual turnover of more than £10.2 million and less than £44 million
Often has significant energy demands which require tailored contracts, multiple premises or bigger locations, for example

How does this impact the energy plans available to you?

Microbusinesses are entitled to greater transparency and may be eligible for simplified energy contracts and favourable terms. For example, micro-businesses often have the right to terminate a contract and switch energy with short notice.

Small businesses benefit from some regulatory protections but have more complex energy needs than micro businesses, often requiring tailored energy plans to manage higher consumption.

Medium-sized businesses typically consume more energy and have more complex energy plan requirements, especially if they have expanded to occupy several sites and larger premises

What other factors will impact your energy plan as a small business?

As well as the size of your business, several factors could impact your energy plan and how much it costs. These include:

Sector

The industry you operate in impacts your energy consumption. For instance, businesses in manufacturing or hospitality tend to use more energy than those in retail or professional services.

Contract type

Fixed-rate contracts offer price stability, which is beneficial for budgeting, while variable-rate contracts allow you to take advantage of market fluctuations.

Meter type

Your meter type also plays a role in determining your energy deal, as well as if there are several sites and several meters in a business.

Location

Energy prices vary between regions, and some areas offer incentives or grants to businesses that want to improve their energy efficiency.

Average energy consumption

As you’d expect, the more energy you use, the more it will cost.