Commercial Energy Rates: Guide to Energy Plans for Large Businesses

For many large businesses, high consumption levels can make managing energy costs tricky, that’s why choosing the right energy contract is so important. Our guide takes you through the different types of energy plans for large businesses, so you can find the best plan for you.  

The best type of energy plan for your large business will depend on your consumption level, type of business, and unique requirements. 

When searching for an energy plan, it’s important to compare contracts from different suppliers, as each supplier will offer different contract types. You should be sure to compare like-for-like contracts, as one supplier’s fixed rates may vary greatly from another supplier’s variable rates.  

• Fixed Plans – Fixed energy plans give customers set rates for their standing charges, unit rates and other non-commodity costs. These agreed-upon rates cannot be changed for the duration of the contract.  

Electricity and gas contracts have separate day and night rates, known as ‘peak’ and ‘off-peak’ rates. You can also request a third, weekend rate if your business operates outside of traditional office hours. 

Fixed contracts are usually set for either 12, 24 or 36 month durations, depending on your preference, though longer contracts can sometimes be negotiated. 

Fixed plans are a popular option for businesses who want to protect themselves from market volatility and fluctuating energy prices. It can also make energy bills more predictable, helping with budgeting. 

For more information about Fixing Your Energy Prices, check out our guide. 

• Variable/ Freedom Plans – Freedom plans provide a flexible business energy solution for businesses who do not want to commit to a long-term contract. Prices are reviewed periodically, and your supplier will email you to advise you of any changes to pricing. 

You can choose to move to a fixed term contract at any time and can cancel your contract with a 30-day notice period. 

Variable/Freedom Plans are ideal for large businesses that require the ability to move their supply at short notice. 

• Part-Flexible Plans – Part-flexible plans let you fix your unit rates and commodity costs for the first year, whilst allowing you to monitor the energy market and choose the best time to lock in your rates for years 2 and 3. This gives customers greater control over their energy costs. 

At Yü Energy, our 3-year Yü Energy Lock plans for large businesses are part-flexible, giving your business the security of a fixed standing charge, with the added flexibility of fixing your rate at a time to suit you.  

Yü Energy Lock gives you fixed non-commodity costs and a flexible pricing strategy with locked-in rates for the first year. You will then be sent weekly prices for years 2 and 3, giving you more control over your energy rates, with the freedom to seize falling market prices and choose the best time to secure your rates.  

• Green Plans – Opting for a green energy plan for your business energy is a great way to reduce your carbon footprint and show a dedication to environmental sustainability and corporate social responsibility. 

Our green energy plans use renewable electricity or carbon neutral gas and when you opt for a green plan with Yü Energy, we’ll also provide you with a Green Energy (REGO) Certification to showcase your initiative towards a greener future.    

If you want to secure the best commercial energy rates for your large business, it is important that you take the time to carefully research the plans available to you. 

Here are some steps you can take to maximise your chances of getting energy contract rates: 

• Understanding your energy needs – You can do this by analysing your business’s energy consumption patterns. This may include carrying out an energy audit,  working out your peak demand periods, and looking for any seasonal variations.  

• Monitor Market Trends – Staying up to date with energy market trends, such as commodity charge changes and wholesale price fluctuations, can help you secure your contract when rates are lower. 

• ‘Shop around’ for quotes – Gathering business energy quotes from different suppliers allows you to compare your offers and find the deal that best suits your business. 

• Consider Contract Length- Longer-term contracts often provide more stable rates, whereas shorter-term contracts can let you benefit from market fluctuations. You should weigh the advantages and disadvantages of each option in relation to your business objectives. 

• Read the Fine Print- Once you’ve chosen your contract, you should carefully review the terms, especially clauses related to rate adjustments and contract renewal. If there’s anything you’re unsure about, you should discuss this with your supplier before signing. 

If you’re looking for an energy plan for your large business, it’s a good idea to watch market trends as there are many factors that can impact your rates – from your business type and size to current world events. 

• Your business size – commercial energy rates can vary depending on the size of your business.,  Due to the high consumption of large businesses, energy suppliers may offer preferential rates, in the same way buying products in bulk can often result in a lower price per item. 

• Your business location – unit rates of energy will also vary depending on where in the country you are based. The UK is split into ‘zones’, with each zone having its own wholesale energy prices, reflecting supply and demand and network capacity in the area. 

• Your contract term – when deciding how long you should lock in a contract for, it is a good idea to compare rates for 1-, 2- and 3-year contracts, allowing you to select the best deal with the lowest rates. 

• Supply and demand – at times when demand for energy is higher, e.g. in the winter or during the daytime, energy rates will usually be higher. 

• World events – energy generation is a global operation, meaning that world events such as natural disasters, or political unrest can cause damage or disruption to infrastructure, affecting the price of energy. 

Business size is most often defined by annual turnover, number of employees, and energy consumption.  

Large businesses are defined as having more than 250 employees, whereas SMEs are defined as having fewer than 250 employees and an annual turnover of less than £25million. 

In terms of their energy consumption, the smaller the business, the lower their consumption is likely to be, with small businesses using an average of 25,000 kWh of gas and up to 25,000 kWh of electricity a year and large businesses using more than 65,000 kWh of gas and more than 50,000kWh of electricity a year. 

If you are a microbusiness, there are different regulations that can affect your energy contract, including greater protection for your business. Read our microbusiness energy contracts guide to find out more. 

If you’re a large business looking for smart solutions for your energy, we can help. From our seamless onboarding process to your own dedicated account manager and billing contact for complex bills, Yü Energy offers tailored plans to fit your business.  

Find out more about how we can help your large business or get your free quote today.