Tariff Basics

Everything you need to know about business energy tariffs without the jargon.

Business energy tariffs aren’t designed to be simple. Between unit rates, standing charges, and contract terms, many companies sign agreements without really knowing what they’re paying for. That’s why so many end up stuck in uncompetitive deals that quietly drain their margins.

Key things to understand

  • Unit rates: the price per kWh of gas or electricity you consume.
  • Standing charges: daily fees just to keep your supply active.
  • Contract length: lock-ins can protect you, but also trap you.
  • Rollover risk: if you miss your renewal window, costs can jump 30-50% overnight.

Why clarity matters

If your tariff isn’t benchmarked, you can’t know whether it’s competitive. And with energy spend often reaching £500k-£5M annually, even small percentage differences represent six-figure sums. That’s budget leakage you can’t afford.

To see how your tariff compares, head over to our What We Do page or start with your Tarrif Analysis.

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