020 3038 6094Get prices
ServicesWho we helpHow it worksGuidesAboutCheck my billContactCall 020 3038 6094

Prices

What a fair business unit rate looks like

By the Business Savings Guru team. Last updated 28 October 2026.

On this page
  1. The short answer
  2. Why is there no single fair unit rate?
  3. What is included in a business unit rate?
  4. How much do standing charges matter?
  5. Does meter type change what is fair?
  6. How can we check whether our rate is fair?
  7. What are the warning signs of an unfair rate?
  8. How Business Savings Guru helps
  9. Frequently asked questions
  10. Sources

The short answer

A fair business unit rate is one that reflects the wholesale market on the day it was priced, your consumption and meter type, the non-commodity costs that apply to your site, and a clearly disclosed broker and supplier margin. There is no single fair number, because rates move daily and vary by site, so the right test is to compare your total annual cost (unit rates plus standing charges) against several like-for-like quotes and against the government's published non-domestic price data for businesses of your size.

Why is there no single fair unit rate?

Business energy has no price cap. Each quote is priced individually from:

  • Wholesale cost on the day the supplier prices the contract
  • Non-commodity costs: network charges, balancing costs, policy levies such as the Renewables Obligation and Contracts for Difference, and metering
  • Your profile: how much you use, when you use it, and whether your electricity meter is half-hourly
  • Contract terms: length, fully fixed or pass-through, and payment terms
  • Margins: the supplier's margin and, if you use one, the broker's fee

Two quotes on the same day can differ for legitimate reasons. A quote from three months ago may have been fair then and look expensive now.

What is included in a business unit rate?

On a fully fixed contract, the unit rate usually bundles wholesale energy and most non-commodity costs. On a pass-through contract, some of those costs appear as separate lines on the bill. Climate Change Levy is charged on top per kWh (0.801p per kWh for both electricity and gas from 1 April 2026, unless you qualify for relief), and VAT is added after that.

Since October 2024, Ofgem requires suppliers to show broker fees clearly in the principal terms of all non-domestic contracts. That makes it possible to see how much of your unit rate is the broker's fee.

How much do standing charges matter?

A lot, especially for larger sites. Standing charges cover fixed costs, and for many electricity sites they now include fixed network charges set by the site's charging band. Larger half-hourly sites may also pay an agreed capacity (kVA) charge every month, whatever they use.

A low unit rate with a high standing charge can cost more than the reverse. This is why quotes should always be compared on total annual cost, using your real consumption, not on unit rate alone.

Does meter type change what is fair?

Yes. Half-hourly (HH) electricity meters record use every 30 minutes, and settlement on that data means the price reflects when you use energy. Sites that use a lot at peak times, especially weekday evenings in winter, can face higher costs than sites that use most energy overnight. Non half-hourly (NHH) sites have historically been settled on standard profiles. Britain is moving almost all meters to half-hourly settlement, with Elexon working to complete this by May 2027, so more sites will be priced on their actual usage pattern.

You can see which type you have from the top line of the MPAN on your bill: profile class 00 means half-hourly.

How can we check whether our rate is fair?

  1. Get like-for-like quotes. Same start date, contract length, consumption, meter details and treatment of pass-through costs, priced on the same day if possible.
  2. Compare total annual cost. Multiply each unit rate by your annual consumption, add 365 days of standing charge and any capacity charge, and compare the totals.
  3. Check the broker fee. Look for it in the principal terms, or ask the supplier, who must provide it on request.
  4. Benchmark against official data. The Department for Energy Security and Net Zero publishes quarterly average prices paid by non-domestic consumers, split by consumption band, in Quarterly Energy Prices tables 3.4.1 (excluding CCL) and 3.4.2 (including CCL). These are averages across contracts signed at different times, so use them as a sense check rather than a target.
  5. Check you are not out of contract. Out-of-contract and deemed rates are usually well above negotiated rates.

What are the warning signs of an unfair rate?

  • A quote with no breakdown of what is fixed and what is passed through
  • A broker fee you cannot find in the principal terms
  • Pressure to agree on a call today (there is no cooling-off period on business contracts)
  • A headline "saving" based on comparing with out-of-contract rates rather than a fair renewal price
  • A very low unit rate paired with a much higher standing charge

How Business Savings Guru helps

Business Savings Guru compares quotes from suppliers on our panel (we have access to over 20 energy suppliers, including direct relationships with E.ON, ENGIE, SEFE Energy, SmartestEnergy, Valda Energy, EDF Energy, Corona Energy, Crown Gas & Power, Pozitive Energy and TotalEnergies) on total annual cost, using your actual consumption and meter data, and shows you which costs are fixed and which are passed through. Our commission is clearly disclosed on the energy contract you sign, so you know how BSG is remunerated before you commit. We are a member of the Energy Ombudsman (membership number C35ENER126).

Frequently asked questions

What is a good business electricity unit rate right now? It changes daily with wholesale prices and varies by site. The reliable test is several like-for-like quotes compared on total annual cost, sense checked against DESNZ Quarterly Energy Prices table 3.4.1 for your consumption band.

Why is my business unit rate higher than the domestic price cap? The domestic price cap does not apply to businesses. Business rates are priced individually and include Climate Change Levy and, usually, 20% VAT.

Should we choose the lowest unit rate? Only if the total annual cost is also lowest. Standing charges, capacity charges and pass-through costs can change the answer.

Where can we see what our broker is paid? In the principal terms of your contract. Since 1 October 2024, suppliers must show broker fees there for all non-domestic contracts and provide them on request.

Do half-hourly sites get better rates? Not automatically. Their rates reflect when they use energy, which helps sites with off-peak use and costs more for sites with heavy peak use.

Sources