In short
Business electricity comparison means asking several suppliers to price the same supply, then comparing the unit rate, standing charge, contract length, terms, green content, VAT and Climate Change Levy together. Forever Communications works as an agent of Fidelity Energy, which prices a panel of 24+ suppliers (its own figure). We help you compare the quotes like-for-like.
Want help weighing it up?
Tell us about your premises, usage and renewal dates and we will explain which option fits, and why.
How business electricity comparison works
There is no single business electricity tariff that everyone can see. Each supplier prices your business individually, based on how much electricity you use, when you use it, the meter and settlement arrangements at each site, how long you want to fix for and your credit position. Business contracts are also outside Ofgem's energy price cap (see is there a price cap on business energy?), so the price you agree is the price your contract sets.
That is why a fair comparison asks every supplier to quote on the same basis, then reads the whole offer rather than one number. Forever Communications works as an agent of Fidelity Energy, an independent business energy broker and consultancy. The process looks like this:
- You share a recent electricity bill for each site, your annual consumption and your current contract end date. The supply number (MPAN) is printed on your electricity bill; our sister site Business Gas and Electric explains what it means.
- Fidelity Energy asks suppliers on its panel to price your supply. Fidelity Energy says it compares 24+ suppliers. That is a broad panel, not every supplier in the market, and we say so plainly.
- We help you lay the quotes out like-for-like so you can see unit rates, standing charges, term, green content and end-of-contract terms together, and work through the differences.
- You choose, and the supplier decides whether to accept. Under Fidelity Energy's terms, accepting a quote is a binding offer to the supplier, which can still accept or refuse it, for example after a credit check.
For the full checklist of what to have ready, see business energy quotes.
What to compare on a business electricity quote
| What to compare | What to look for |
|---|---|
| Unit rate (pence per kWh) | The price per unit of electricity. Check whether there is one rate or several (for example day and night) and that the structure matches your meter. |
| Standing charge (pence per day) | A fixed daily charge whatever you use. Low users should give it as much weight as the unit rate. |
| Contract length and start date | How long the price is fixed and when it starts. The start date should follow on from your current contract without a gap. |
| What is fixed | Whether the unit rate, standing charge and any non-energy charges are fixed for the term, or whether some charges can be passed through as they change. |
| Capacity or network charges | Larger supplies may see extra charge lines. Ask what each one is and whether it is fixed for the term. |
| Green content | Whether the electricity is backed by REGO certificates and for what share of your supply. |
| VAT and Climate Change Levy | Which VAT rate the supplier expects to charge and whether the Climate Change Levy applies. Compare quotes on the same basis. |
| Broker commission | Whether broker costs are included in the rates. Suppliers must show them in the contract's principal terms. |
| End-of-term terms | What happens if you do nothing: rollover onto a new fixed term, or out-of-contract rates. |
None of these lines on its own tells you which offer is right. Our guide to finding the cheapest business energy contract explains why the lowest unit rate is not always the lowest cost over the term.
Not sure which option suits you? Ask us
Tell us about your premises and usage and we will explain the options that fit.
Unit rate versus standing charge
Every business electricity quote is built from two main parts: a unit rate charged for each kWh you use, and a standing charge charged for each day you are supplied. Suppliers balance the two differently, so one quote may have a lower unit rate and a higher standing charge than another.
The simplest way to compare is to work out what each quote would cost over a year on your consumption:
- annual unit cost = unit rate x your annual kWh
- annual standing cost = standing charge x 365 days
- add the two together, then multiply by the number of contract years for the term cost
Do the sum before VAT and the Climate Change Levy, and again after them if the quotes treat those differently. A site that uses very little electricity, such as a small unit or a storage building, can find the standing charge is the larger part of the bill. A heavy user is more sensitive to the unit rate. Our sister site Business Gas and Electric explains standing charges and unit rates in more depth.
Single-rate, day/night and multi-rate supplies
Some business electricity supplies have one unit rate for all hours. Others have two or more rates, for example a day rate and a cheaper-sounding night rate, or rates that change by time band. Which structure you can have depends on your meter and how your supply is settled, so a quote should match the arrangement at your site.
When comparing multi-rate quotes, weight each rate by how much of your electricity you actually use in that period. A low night rate only helps if a meaningful share of your usage falls at night. Your bills, or half-hourly data for larger sites, show the split.
If you are thinking about changing meter type, or have a smart meter and want to know what it means for your contract, see Business Gas and Electric for the meter side. Changing supplier does not, by itself, interrupt your supply.
Want this looked at for your premises?
Tell us your sites, meters and renewal dates and we will reply by email with options.
Fixed or flexible electricity contracts
Most small and medium-sized businesses choose a fixed contract. Ofgem describes fixed-rate contracts as fixing the unit rates and standing charges for the length of the contract, which makes budgeting simpler. Read the terms to see whether any other charges can be passed through during the term.
Larger users sometimes buy flexibly, buying their electricity in portions over time rather than on one day. Ofgem describes flexible or structured contracts as suitable for large businesses that use a lot of energy. Fidelity Energy offers flexible procurement run by its own in-house traders, alongside fixed contracts; its ready-made flexible strategies start from 100,000 kWh a year per utility. Flexible buying gives more exposure to market movements in exchange for not pricing everything on one day; it is a different way of managing risk, not a promise of a lower price.
Our guide to fixed vs flexible business energy compares the two in more detail.
Green electricity and REGO certificates
A green business electricity tariff is usually one where the supplier matches some or all of your consumption with Renewable Energy Guarantees of Origin (REGOs). Ofgem issues one REGO for each megawatt hour of eligible renewable electricity a generator produces, and suppliers use them to show where their electricity comes from in their fuel mix disclosure.
When comparing green quotes, ask:
- What share of your supply is REGO-backed: Fidelity Energy says you can choose how much of your electricity is certified
- Whether the supplier will confirm the green content in writing for your records or tender returns
- How the green option changes the price compared with a standard quote for the same term
Fidelity Energy says REGO-backed electricity can support reporting zero market-based Scope 2 emissions; check with whoever prepares your reporting how they treat it. Green electricity does not remove the Climate Change Levy: the renewable-source exemption only covered electricity generated before 1 August 2015. See green business energy and REGO certificates.
VAT and the Climate Change Levy on an electricity quote
Electricity used for business purposes is normally charged VAT at the standard rate of 20%. HMRC allows the reduced rate of 5% for qualifying use, which includes domestic use, use by a charity for non-business activities, and small (de minimis) supplies of no more than an average of 33 kWh a day or 1,000 kWh a month to one customer at one premises. If 60% or more of a supply is for qualifying use, the whole supply is treated as qualifying; below that, the supply is split.
Time-sensitive: HMRC has introduced a temporary zero rate of VAT on qualifying supplies of electricity in Great Britain from 1 October 2026 to 30 June 2027. In Northern Ireland qualifying electricity stays at the reduced rate of 5%. HMRC says there are no changes to which supplies qualify, so business use above the de minimis limits stays at the standard rate. The de minimis limits do not apply to electric vehicle charging supplies.
The Climate Change Levy is charged at the main rates on electricity supplied to businesses and shown on your bill. It is not charged on some supplies, for example to businesses using small amounts of energy, domestic users and charities using energy for non-commercial activities, and energy-intensive businesses with a Climate Change Agreement pay a reduced rate. The rates change on 1 April each year; see GOV.UK's Climate Change Levy rates rather than relying on a figure in an old quote.
Our page on VAT and Climate Change Levy covers both in more detail.
Half-hourly electricity for larger sites
Larger sites, and a growing number of smaller ones, have electricity settled half-hourly: consumption is recorded for each half hour, so suppliers can price your actual usage pattern. Under Elexon's Market-wide Half-Hourly Settlement programme, suppliers are moving all electricity meters onto half-hourly settlement, with meter migrations planned to finish by 7 May 2027.
For a larger site the shape of your demand across the day can matter as much as the annual total. Our guide to half-hourly business electricity explains what changes when you compare those contracts and what data to share.
When to compare, and what to check before you agree
The best time to compare is inside your switching window. For most fixed contracts it opens a few months before the end date. If you are on deemed rates, out-of-contract rates or a rolling contract, Ofgem says you can usually switch at any time. Our guides to business energy contract renewal and how to switch business energy supplier walk through the timing and steps.
Before you accept a quote, remember there is no business energy cooling off period once you agree. Check the contract type and term, any fees, the end-of-term terms and the broker commission in the principal terms. Fidelity Energy is normally paid commission by the supplier you choose, included in your rates, and Forever Communications receives a share of that payment; our energy broker fees page explains how it works. Ofgem says a broker paid by an energy supplier must belong to an approved redress scheme: Fidelity Energy is on the Energy Ombudsman's broker register, with membership active since 1 December 2022 (see energy broker ombudsman). If you are a microbusiness, Ofgem gives you extra protections, explained in microbusiness energy rules.
Contact us with a recent electricity bill and your contract end date, and we can arrange quotes from Fidelity Energy's panel.
Half-hourly electricity contracts
How Forever Communications helps with business energy
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements across its panel of suppliers. We are not an energy supplier, and neither is Fidelity Energy.
- Like-for-like quotes: we help you gather your bills, meter details and contract end dates so suppliers quote on the same basis
- Plain-English terms: we can talk you through unit rates, standing charges, contract length, renewal and the broker commission included in the price before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates
- More than the basics: Fidelity Energy also offers green (REGO-backed) electricity, flexible procurement, half-hourly supplies, multi-site contracts and bill validation
- Your choice: you decide which quote, if any, to accept; prices are set by the suppliers and confirmed at quote
We work with businesses, charities, hospitality, farms and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
How do I compare business electricity prices?
Ask several suppliers to quote for the same sites, consumption, start date and contract length. Then compare the unit rate and standing charge together on your own annual usage, and check what is fixed, the green content, VAT and Climate Change Levy treatment, broker commission and what happens at the end of the term.
Is the lowest unit rate the best business electricity deal?
Not always. A lower unit rate can come with a higher standing charge, a longer term, charges that can change during the contract or less favourable end-of-term terms. Work out the cost over the term on your own consumption and read the terms before deciding.
Do you compare every business electricity supplier?
No. Fidelity Energy compares a panel of suppliers, which it puts at 24+. That is a broad panel but not every supplier in the market. Ofgem suggests checking which suppliers any comparison service includes.
What VAT rate applies to business electricity?
Business use is normally charged at the standard rate of 20%. Qualifying use, including small de minimis supplies, domestic use and charity non-business use, gets the reduced rate of 5%. From 1 October 2026 to 30 June 2027 qualifying electricity in Great Britain is temporarily zero-rated; Northern Ireland stays at 5%.
Can I compare business electricity if I am still in contract?
Yes. You can compare at any time, but Ofgem says most suppliers will not let you leave a fixed contract early unless you have agreed a termination clause or pay an exit fee. Fixed contracts have a switching window that opens a few months before the end date, and you can sometimes switch during it without a fee. Check your contract for the notice and exit terms.
Does green business electricity cost more?
It can, depending on the supplier and how much of your supply you want certified. Ask for a standard quote and a REGO-backed quote for the same term so you can see the difference before you choose.
Still deciding?
Ask us and a member of our team will reply by email with a straight answer.