How to compare business energy quotes in 2025

A lower unit rate does not always mean a lower annual bill. This 2025 planning guide explains how to compare business energy offers on the same basis, whether you run a Birmingham shop or a workshop elsewhere in the West Midlands.

Start with a consistent brief

Build a comparison sheet before asking for prices. Record your business name, supply address, contract end date and annual consumption in kilowatt-hours. Include the electricity or gas supply reference shown on your bill. If you have separate day and night readings, keep those figures separate.

Use the same consumption assumptions and proposed start date for every offer. Comparing one supplier's estimate with another supplier's actual annual usage can make the cheaper-looking proposal misleading. Keep a copy of each quote and note when its price expires.

Calculate the annual cost

For a simple single-rate offer, multiply annual kWh by the unit rate in pounds, then add the daily standing charge multiplied by 365. Add any separately quoted charges before treating the result as a budget. This calculation is a comparison tool, not a complete bill forecast.

Consider two fictional offers for a business using 20,000 kWh a year:

• Offer A: 25p per kWh and a £1 daily standing charge. Energy plus standing charges total £5,365 a year.
• Offer B: 24p per kWh and a £2 daily standing charge. The equivalent total is £5,530 a year.

Offer B has the lower unit rate but costs £165 more on these assumptions. These figures are illustrative, exclude taxes and other charges, and are not available tariffs. If your consumption changes, repeat the calculation.

Compare what the contract includes

Ofgem distinguishes between contract types, including fixed and variable offers. Read the actual terms and ask which charges are fixed, which can change and whether intermediary fees are included. A fixed unit rate does not fix the bill when consumption rises. See Ofgem's business contract guidance.

Put contract length, payment method, any deposit requirement and the supplier's billing arrangements alongside the annual cost. For a business planning to move, expand or replace equipment, ask how those changes would be handled. Record written answers with the quote rather than relying on a sales conversation.

Make a decision you can explain

Keep a short decision note: the offers compared, the assumptions used, the selected term and the reason for choosing it. Agree who has authority to accept the contract and who will check the first bill against the agreed rates.

For help assembling a like-for-like comparison, explore our business electricity service or business gas service. Bring your latest bill and renewal details so the discussion starts with your supply rather than a generic price headline.