A business electricity rate is not one number — it is wholesale energy, network charges, policy costs, supplier margin and broker commission baked into a pence-per-kWh figure. Understanding what is inside the rate is how you spot a good one. We take the rate apart before recommending anything.
What you get
Roughly half of a business electricity rate is not electricity. Knowing which half moves is how you negotiate.
Approximate composition of a typical fixed SME electricity rate in 2026. Proportions shift with the wholesale market and your region — when wholesale falls, the non-energy share grows, which is why rates no longer track the news headlines.
| Component | What it pays for | Approx. share of rate |
|---|---|---|
| Wholesale energy | The electricity itself, bought on the traded market | 40–50% |
| Network charges | Getting power to your site (DUoS, TNUoS, BSUoS) | 20–25% |
| Policy & levies | Renewables obligations, capacity market, FiT legacy costs | 15–20% |
| Supplier margin & risk | The supplier’s operating cost, hedging risk and profit | 5–10% |
| Broker uplift (if any) | Commission added per kWh when a broker arranged the deal | 0–3% |
Indicative composition for a fixed, fully-inclusive SME rate, July 2026. Pass-through and flexible contracts itemise these components separately instead of fixing them. VAT and the Climate Change Levy are charged on top.
A fully fixed rate bundles everything into one number for budget certainty. Pass-through fixes the energy but lets network and policy costs float. Flexible contracts buy energy in tranches. Each suits a different business — and each makes a supplier’s quote look cheap in a different way.
Multi-rate meters charge different prices at different times. A tempting night rate is worthless if only 10% of your usage is at night — and some suppliers structure quotes to exploit exactly that. We weight every rate against your actual usage split before comparing.
Distribution charges differ by region, which is why the same supplier quotes different rates in Merseyside and in London. If you operate multiple sites, a supplier that is sharp in one region can be mediocre in another — single-supplier loyalty across sites often costs money.
Many brokers are paid through an undisclosed uplift added to your unit rate for the life of the contract. We disclose our fee in writing before you sign — as a guide, typically 1–2p per kWh on electricity — so you know exactly what advice costs and can judge it against the saving.
Our fee is agreed upfront and disclosed in writing before you sign. It may be paid directly or collected via the supplier as a transparent p/kWh uplift. The exact amount depends on consumption, contract length, and service scope.
As a guide, our fee is typically 1–2p per kWh on electricity and approximately 1p per kWh on gas.
One adviser reviews your situation, checks the market, and gives you a straight answer. No portals. No pressure. No tariff confetti.
For most SMEs in July 2026, a competitive fully-fixed rate lands between roughly 24p and 28p per kWh depending on size, region and meter type. But a “good rate” is the one with the lowest full annual cost for your usage — a cheap unit rate with a high standing charge can be a worse deal.
The unit rate is what you pay per kWh consumed. The standing charge is a fixed daily fee that applies even when you use nothing. Low-usage sites should weight the standing charge heavily; high-usage sites should focus on the unit rate.
Because up to half of your rate is not wholesale energy. Network charges and policy costs have risen materially, and they are recovered through your rate and standing charge. Falling wholesale prices soften rates; they do not control them.
Fixed rates generally cannot be reopened mid-term, but we can review what you are on, flag whether it is competitive, and prepare the market approach for your renewal window — which is where the leverage genuinely exists.