How to Negotiate Lower Business Electricity Rates with Suppliers

Managing energy costs is a crucial aspect of running a successful business. Electricity is one of the major expenses for businesses, and with prices constantly fluctuating, it’s important for businesses in the UK to stay ahead of the game by comparing business electricity prices and securing the best deals. One of the most effective ways to achieve this is by negotiating lower electricity rates with suppliers.

In the UK, there are several energy suppliers offering different rates and packages, which can be overwhelming for businesses to navigate. However, with the help of a business electricity comparison site, businesses can compare prices and packages from different suppliers to find the most cost-effective option for their needs.

Once you have compared prices, the negotiation process can begin. Here are some additional tips on how to negotiate lower business electricity rates with suppliers:

Know your usage

Before you start negotiating with energy suppliers, it’s important to understand your electricity usage. By knowing your usage patterns, you can determine how much energy you need and when you need it. This information will help you negotiate the best possible rates with suppliers. You can get a good understanding of your usage by analyzing your bills or by using a smart meter.

Shop around

It’s important to shop around and compare rates from different energy suppliers. In the UK, there are a variety of energy suppliers, including the big six (British Gas, EDF Energy, E.ON, npower, ScottishPower and SSE) as well as smaller, independent suppliers. Don’t be afraid to ask for quotes from several suppliers and compare the prices and packages on offer. You might be surprised to find that smaller suppliers offer more competitive rates than the big six.


Once you’ve compared rates from different suppliers, it’s time to negotiate. Don’t be afraid to ask for a better deal or to negotiate on specific terms. Many energy suppliers offer discounts for businesses that commit to longer contracts or that pay their bills on time. You can also negotiate on the price per unit of electricity or the standing charge.

When negotiating, it’s important to be clear about what you want and to be realistic. Don’t expect to get a huge discount straight away, but be willing to compromise on certain terms if it means getting a better deal overall. Remember, the energy supplier wants your business just as much as you want their service.

Consider renewable energy options

Renewable energy is becoming an increasingly popular option for businesses in the UK. Many energy suppliers offer renewable energy packages that allow businesses to switch to more sustainable energy sources such as wind or solar power. Although renewable energy can be more expensive than traditional energy sources, it’s worth considering if sustainability is a priority for your business.

Use a broker

If negotiating with energy suppliers isn’t your strong suit, consider using a broker. Energy brokers can help you find the best possible rates and packages from different suppliers. They can also negotiate on your behalf and ensure that you’re getting the best deal possible. Brokers do charge a fee, so make sure you’re comfortable with their terms before signing up.

Consider energy efficiency

Improving your business’s energy efficiency can also help to lower your electricity bills. There are a variety of ways to do this, including upgrading to more energy-efficient equipment, installing smart meters, and ensuring that lights and equipment are turned off when not in use. By reducing your energy usage, you may be able to negotiate lower rates with your energy supplier.

Stay on top of your bills

It’s important to stay on top of your bills and to pay them on time. Late payments can result in extra charges and can damage your credit rating. By paying your bills on time, you’ll show your energy supplier that you’re a reliable customer and may be able to negotiate better rates in the future.

Understand the market

It’s important to stay up-to-date on the energy market in the UK. Keep an eye on news and developments in the industry, as well as any changes to government policy that may affect energy prices. This will help you to understand the market and to negotiate better rates with suppliers.

Consider fixed vs. variable rates

Energy suppliers in the UK offer both fixed and variable rates. Fixed rates mean that you’ll pay the same amount for your energy for the duration of your contract, while variable rates can fluctuate with market conditions. Consider which type of rate is best for your business, and negotiate accordingly.

Look for added value

When negotiating with energy suppliers, look for added value in the form of additional services or perks. For example, some suppliers may offer free energy audits or energy efficiency advice. Others may offer rewards or loyalty schemes for long-term customers. Don’t be afraid to ask for additional value to sweeten the deal.

Consider bundling services

If your business requires multiple services, such as gas or water, consider bundling them together with your electricity service. Many energy suppliers offer bundled packages that can save you money on your overall utility bills.

Check the terms and conditions

Before signing up with a new energy supplier or renewing your contract, make sure to read the terms and conditions carefully. Check for any hidden charges or fees, as well as the cancellation policy. You don’t want to be caught out by unexpected charges down the line.

Be prepared to switch

If you’re not happy with your current energy supplier or the rates on offer, don’t be afraid to switch. The energy market in the UK is competitive, and there are many suppliers vying for your business. By being prepared to switch, you may be able to negotiate better rates with your current supplier, or find a better deal elsewhere.


Negotiating with energy suppliers can be a daunting task, but it’s important to make sure you’re getting the best deal for your business.

By understanding the market, staying up-to-date on news and developments in the industry, considering renewable sources of energy like solar power, using an energy broker if necessary, improving your business’s efficiency, paying bills on time and looking for added value from providers – you should have no problem finding a great rate that meets all of your needs. With these tips in mind, you’ll be able to negotiate confidently and find an excellent supplier that offers competitive rates.