Are Business Electricity Prices Stable in 2025?
Yes — after years of volatility, business electricity rates have become more predictable in 2025.
While prices are slightly higher than 2024, businesses now have a clearer view of the market, making it a great time to secure a competitive tariff.
In 2024, the average electricity rate hovered around 25.95p/kWh.
In 2025, rates sit closer to 26.9p/kWh based on national averages.
This slight rise is driven by market adjustments, but rates are no longer moving sharply week to week — which means businesses can confidently compare and secure stable pricing.
Key Things to Review Before Requesting an Energy Quote
Choosing the right contract goes beyond simply comparing prices. Keep these key factors in mind to make sure you’re getting the best value:
✔ Your business’s operating hours & consumption
Understand when and how much energy you use. Businesses active at night or weekends may benefit from off-peak or Economy-style tariffs.
✔ Your type of tariff
Fixed, variable, green energy, multi-site — each tariff works differently. Selecting the right one can significantly reduce your costs.
✔ Supplier pricing structures
Even when wholesale rates are similar, supplier margins, standing charges, and billing methods differ. Comparison helps uncover hidden savings.
✔ Annual consumption
Higher energy users generally secure better unit rates. If you operate across multiple locations, consider a multi-site contract for lower overall pricing.
What’s Included in a Commercial Energy Quote?
When we generate your business energy quote, we include:
1. Electricity and gas unit rates (per kWh)
2. Your daily standing charge
3. VAT (typically 20%, unless eligible for a reduction)
4. Climate Change Levy (CCL)
5. Estimated annual cost based on your usage
These combined elements determine your final annual cost.
Should You Fix Your Business Energy Prices in 2025?
Many UK businesses are choosing fixed-rate contracts in 2025 — and for good reason.
Benefits of fixing your rate:
- Easier budgeting
- Protection from sudden price spikes
- Stability in an uncertain market
- Competitive options now that prices have cooled
As wholesale market conditions remain steady, locking in a fixed price is a smart move for most businesses.
However, large energy users may still explore flexible contracts depending on their risk strategy.
