Want to save money on your business’s power bill? You’re in the right spot. Let’s break down how commercial electricity deals work and how you can find the best one.
What Are Commercial Electricity Deals?
Commercial electricity deals are special power plans for businesses. Unlike homes, businesses use more energy, often during the day. Power companies give businesses separate deals to help with that.
A commercial electricity deal is the plan you choose for this power use. It includes your price per unit, your contract time, and other fees.
In many places, businesses can pick who they buy electricity from. This means you can shop around for better offers.
Why Are They Important?
Good deals help businesses save money. If you lock in a low price, your electricity bills stay steady. That helps you plan better and invest in your business.
Saving just 1 or 2 cents per kilowatt-hour (kWh) can make a big difference. A small business using 50,000 kWh per year could save $1,000 or more just by switching plans.
How Shopping Around Helps You Save
In countries like the U.S., UK, and Australia, businesses can choose their providers. This is called a deregulated electricity market.
For example:
- In Texas, businesses can pick from over 100 retail electricity providers.
- A Texas bakery lowered costs by $4,200 per year just by changing plans.
- In Illinois, one company saved 15% after comparing 3 deals side by side.
Compare deals by checking:
- Price per kWh
- Contract length (1 year, 2 years, etc.)
- Fixed or variable rate
- Extra fees
- Green energy options
Types of Commercial Electricity Deals
There are different kinds of deals to fit your needs. Here are the main ones:
Fixed Rate Plans
You pay the same price per kWh for the whole contract. Good if you want steady bills. Great option when electricity market prices are low.
Example: A small gym in Manchester locked in a fixed rate before prices rose in 2022—saving over £3,000 for that year.
Variable Rate Plans
Your price changes month to month. It follows the market price. If prices drop, you save. If prices go up, you pay more.
Good for short-term needs or when prices are trending down.
Green Energy Plans
These use energy from wind, solar, and other clean sources. They may cost a bit more but help the planet—and your brand image.
In one US case study, a small retailer added solar energy to their plan. Their marketing used that fact to boost customer loyalty.
How to Pick the Right Deal for Your Business
Now let’s simplify your search. Here are easy steps:
Step 1: Look at Your Energy Use
Check your last 12 months of electricity bills. Look at:
- How many kWh you use
- When you use the most (day/night)
- Your current rate
Use these numbers to compare deals better.
Step 2: Set Your Priorities
What’s more important to you:
- A low rate?
- No price change for a year?
- Renewable energy?
- Zero hidden fees?
Choose what matters most before shopping.
Step 3: Compare 3–5 Offers
Use comparison sites or go direct to providers. Ask for:
- Price per kWh
- Monthly base fees
- Contract terms
- Early exit fees
Let’s look at an example:
Provider | Price per kWh | Fixed/Variable | Contract Length | Early Exit Fee |
PowerCo A | $0.09 | Fixed | 12 months | $200 |
Bright Energy | $0.11 | Green, fixed | 24 months | $150 |
SparkBiz | $0.08 | Variable | No contract | $0 |
Here, SparkBiz is cheapest, but prices can rise. PowerCo A is safer with no surprises.
Step 4: Ask Questions
Don’t be afraid to call providers. Ask them:
- Are there hidden fees?
- What happens if I move?
- What if I use more energy?
Smart questions lead to fewer surprises.
Step 5: Read the Fine Print
Always check the contract before signing. Look for:
- Extra costs
- End of contract terms
- Penalties
Many business owners miss these and end up stuck.
What About Brokers?
Energy brokers help find deals for you. They often:
- Know the market well
- Talk directly with suppliers
- Help businesses with special needs
But always ask them how they get paid. Some charge your business, others earn from suppliers.
Case in point: A restaurant owner in Melbourne used a broker and saved 22%—about $6,000/year. But before signing, he asked the broker to show quotes from five suppliers. Smart move!
Should You Wait or Switch Now?
Prices rise and fall. In early 2023, prices in the UK dropped 30% from 2022 highs. In most cases, switching now locks in a lower rate before they go up again.
But don’t rush. Look at numbers. Do the math.
Large companies often switch deals every 12–24 months to stay ahead. You can too.
Common Mistakes to Avoid
- Waiting too long. End of contract rates can be super high.
- Choosing cheapest without reading fine print.
- Not checking for auto-renewal clauses.
- Not asking for custom plans—some businesses get better rates based on usage times.
Save Even More: Reduce Energy Use
Besides picking the best deal, lower your use. Some easy ways:
- Use LED lights
- Turn off machines at night
- Upgrade old fridges and air systems
Many small businesses cut 10% off bills with basic steps.