Business electricity - quoted 71p per kWh - is this normal?

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Hi all,

So I've just bought a small unit to use as an office and for storage and was quoted by EON (the current supplier), 71p per kWh, I thought this was extraordinarily high as I thought business energy was meant to be cheaper than residential. After speaking with Bionic they said what EON had quoted me was cheaper than anything they could, but it still sounds way high. Is this normal for business energy?

Many thanks
Nice to save.
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  • DeeQS
    DeeQS Posts: 74 Forumite
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    Opposite… Business energy is higher than residential as it’s not covered by the price cap.

    Businesses have been burdened with rates closer to the true cost of supply recently.
  • peter_the_piper
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    I get the impression that businesses are paying for the lower domestic cap. It can't last long with lots of businesses forecast to close because of this.
    I'd rather be an Optimist and be proved wrong than a Pessimist and be proved right.
  • billy2shots
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    I'm in the same boat with gas and electric. 

    I'm hoping we will get some news this week on how the cap 'scheme' will play out for business owners. 

    Apart from a cap for 6 months (Vs 18 months for residential) no further details have been announced as far as I can see. 
  • macman
    macman Posts: 53,098 Forumite
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    Residential VAT: 5%.
    Business VAT: 20%.
    There's no sign that the VAT will be reduced on either.
    No free lunch, and no free laptop ;)
  • wrf12345
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    I am surprised we have not heard stories of people running businesses from home suddenly finding themselves switched over to business based electricity...
  • noitsnotme
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    macman said:
    Residential VAT: 5%.
    Business VAT: 20%.
    There's no sign that the VAT will be reduced on either.
    I’m on a business tariff with British Gas Lite and only paying 5% VAT.  Wonder why they’re not charging 20%?
  • Robin9
    Robin9 Posts: 12,144 Forumite
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    I’m on a business tariff with British Gas Lite and only paying 5% VAT.  Wonder why they’re not charging 20%?
    Have you got a Charity exemption ?
    Never pay on an estimated bill
  • noitsnotme
    noitsnotme Posts: 915 Forumite
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    edited 11 September 2022 at 12:56PM
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    Robin9 said:
    I’m on a business tariff with British Gas Lite and only paying 5% VAT.  Wonder why they’re not charging 20%?
    Have you got a Charity exemption ?
    No, we’re not a charity.  It’s a limited company and the account is in the company name so it can’t be mistaken for a personal account.  I think BG Lite are business providers only anyway.
  • MattMattMattUK
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    macman said:
    Residential VAT: 5%.
    Business VAT: 20%.
    There's no sign that the VAT will be reduced on either.
    The vast majority of businesses will be VAT registered so the VAT on energy for businesses doesn't really matter.
  • Astria
    Astria Posts: 1,448 Forumite
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    I've seen business rates on fixed tariff 1 year being 52p/kWh, but that was before September and had quite high standing charges in excess of £1. I'd expect these have gone by now though.
    71p/kWh seems pretty cheap now in comparison.
    But, you can get help as there's a package of benefits on the way for businesses.

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