Business energy unit rates: what p/kWh really means

The unit rate is what you pay per kWh of energy used

The unit rate is the pence-per-kWh figure on your business energy contract. Multiply it by your annual consumption and you have most of your bill — the standing charge and VAT do the rest.

Wholesale energy is the largest single component (typically 40-55%), followed by network charges, environmental levies and supplier margin.

Why the same supplier quotes different rates for different businesses

Two businesses on the same street can be quoted materially different unit rates. The reasons are all mechanical:

• Consumption band — larger users get lower unit rates.
• Contract length — 24-36 month contracts usually price sharper than 12-month.
• Meter profile — profile class 3-4 (SME NHH) prices differently to profile class 5-8 (HH).
• Region — DNO charges vary; a Cardiff meter and a Manchester meter are quoted on different network cost bases.
• Credit — a strong Companies House filing shortens hedging risk and can nudge the rate down.

Single-rate, two-rate and half-hourly

Single-rate meters get one unit rate for every kWh. Two-rate ('Economy 7' style) meters get separate day and night rates. Half-hourly meters are settled every 30 minutes against wholesale, so the 'rate' is really a series of time-of-use figures — often shown as day/night/weekend or a full 48-period schedule.

Benchmarking your quote

A fair 2026 SME electricity rate for a stable 30,000 kWh/year site is typically in the 22-28p/kWh range on a 24-month fix, with a 45-70p/day standing charge — but that varies by region and week. Always compare against at least three whole-of-panel quotes on the same contract length before signing.