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Join for freePosted: Thu 3rd Sep 2026
Confused by all the energy tariffs available and just want a quick answer to which tariff is best for your business?
Gone are the days of choosing an energy tariff based solely on price. With a wide range of tariff types available, the challenge now is knowing which one actually fits how your business runs.
During this practical 30-minute session, EDF Small Business’s Martin Paice walks through the tariff types available today and explains the real differences between them.
Ultimately, this is your chance to get expert insight, actionable tips and find out in 30 minutes which is the best type of tariff for your business.
The range of tariff types available and what they mean for your bills
Which tariff type tends to suit businesses like yours
What questions to ask before your next renewal
There isn’t much Martin Paice doesn’t know about small businesses and the energy markets.
Having worked at EDF for more than two decades and been embedded in its Small Business team for most of that time, he’s the person everyone goes to when they can’t find an answer anywhere else.
Some of his recent career highlights include helping to expand the number of brokers, giving small businesses even more when it comes to suppliers, as well as building new partnerships that give small businesses free access to support and services, like the Perse energy audits – worth £250.
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Lightly edited for clarity.
Beth: Hello, everyone, and welcome to today's Powering Local Businesses Lunch and Learn. I'm Beth, community manager at Enterprise Nation.
Powering Local Businesses is brought to you by EDF Small Business and Enterprise Nation, and it's designed to help small businesses grow more sustainably, however you sell and wherever you're based.
Through the hub, you can access energy-saving guidance, expert workshops and a range of free business support resources. We'll be dropping links in the chat throughout, so please do keep an eye out.
Today, we're tackling a question that every business owner faces at renewal time: which energy tariff is actually right for your business?
Gone are the days of choosing on price alone. There are now more tariff types than ever, and picking the wrong one can cost you.
This session will cut through the confusion and give you a clear answer.
We're joined today by Martin Paice from EDF Small Business. Martin has worked at EDF for more than two decades and has been embedded in the small business team for most of that time.
He's the person everyone turns to when they can't find an answer anywhere else. He has a deep understanding of how small businesses use energy and which tariff choices tend to work best in practice.
In this session, Martin will walk us through the tariff types available today, explain the real difference between them, and take live questions based on your industry and set-up.
And as a bonus, every attendee today will receive a free copy of the Tariff Navigator Guide, which is packed full of videos and insight from EDF energy specialists who understand small businesses.
As always, please add any questions to the Q&A as we go along, and we'll do our best to answer them at the end of the session.
The session is being recorded, and we will send the recording with further resources later today. Over to you, Martin.
Martin: Hi, everyone. Thanks for joining today and giving up your lunch hour. It's really appreciated.
As Beth said, I've been with EDF for over 20 years now. I've always worked in the small business area, and I've done a variety of roles across sales and marketing.
So I've got a really good understanding of the market and a really good experience of how the tariffs have evolved over time.
The reason we've picked this topic is that we know small business owners are very busy people.
We know you've only got a finite amount of free time, and actually having the time and focus to spend on examining and researching the energy market is difficult.
So this is about giving you a quick walk-through of what the options are from a tariff perspective for business owners.
Price is obviously always going to be a major factor, but there are a lot of other things to consider, particularly with the way the market is evolving. We're going to try and talk you through some of those changes today.
It's worth noting that this session is only about small business. It's not about residential tariffs. So we're just going to cover the impact for small businesses today.
Just from an agenda perspective, the first 15 minutes will cover an overview of the various tariffs that are available in the market. Then, for the second half of the session, we're going to take questions from you and hopefully give you some advice on which tariffs are best for you.
Now we're going to cover variable tariffs.
We were going to have a quick video here, but we've had a few gremlins in the system, unfortunately. So I'll try and talk you through the context of what the video was going to say.
With variable tariffs, the price can change at any point in time. They tend to track the wholesale market, so as the market moves up and down, variable tariffs will change with the market.
Ultimately, the one thing I'd say, if you're going to take anything away from today's session, is to understand the real key differences between variable and fixed tariffs.
I'm sure there are probably a good few of you who, at the moment, might be in a shared office space or working for your small business from home, and you're thinking about moving into an actual premise for the first time, where you'll have your own electricity or gas meter.
If you are in that situation, when you move into that property, you will go on to a variable tariff. That could be called standard variable, it could be called deemed, and in our instance we also have a tariff called Freedom.
So if you move into a property, you'll go on to a variable tariff.
Also, if you've been on a fixed tariff, at the end of that fixed term, if you don't do anything, you'll end up on a variable tariff at the end of that contract again.
It's worth highlighting that, with variable tariffs, although you have freedom to do whatever you want, you'll be able to switch supplier and agree a new contract at any point in time.
The key thing to take away is that variable tariffs tend to be a bit more expensive than fixed tariffs.
So I would really stress that if you are thinking about moving into a new premise, or if your contract is coming up for renewal, it's definitely worth considering trying to get options for a fixed tariff.
I'd liken that a little bit to the mortgage market, where generally you're going to get a cheaper interest rate if you're on a fixed tariff versus a variable tariff.
The reason for that is that it allows certainty.
From our point of view at EDF, if you're on a fixed tariff, we can buy that energy for the length of that tariff, and we can therefore lock in that price.
Whereas with the variable price, because we don't necessarily know how long you'll stay with us, we're having to continue to keep buying that energy, and it's bought much closer to what the wholesale market is doing at that time.
Now let's move on to fixed tariffs. As I've said already, fixed tariffs are really worth considering. If you are on a variable tariff, think about going on to a fixed one.
You're generally going to find the prices are cheaper because it allows us to buy the energy for the length of time that you're going to commit to that contract.
From our perspective, about two-thirds of our electricity and gas customers are on a fixed tariff for EDF in small business.
The reason for that is all about price certainty. It gives you the confidence that you know what the price is going to be for the period of time that you're with us. It helps you budget.
Most suppliers will offer probably up to four years in length. So it's about thinking about the right length of fixed tariff for your business.
Some customers will always look to choose the cheapest rate. That might vary. The one-year might be cheapest, or even the three-year might be cheapest. It depends on what the wholesale market is doing.
But it's about trying to think about what's the right length for your business.
Are you going to be in that premise for a long period of time? Are you only going to be in there for a short period of time?
Prices can move up and down. Ultimately, if the cost of energy falls and you've agreed a fixed contract, then your prices will stay the same.
But I'd really stress that it's about thinking about the certainty of price and what that allows you to do from a budgeting perspective. It gives you the confidence to know what's going to happen for your energy contract for the next period of time.
So it's really about choosing the right length that suits your business and the position that your business is in.
Next, time-of-use tariffs. You'll hear more about this in the future because I think, with more customers having smart meters, there will be a lot more focus on when you're actually consuming energy within the 24-hour day.
Already, with traditional meters, you do to some extent have time-of-use variances.
Probably around 75% of the market for electricity is on what we call the standard tariff, where every unit of energy you use throughout the day is charged at the same rate.
But equally, there are also things like Economy 7 or evening and weekend tariffs, where you'll get a different price for a night period. With evening and weekend, you'll get a different price for the evening and weekend.
That type of tariff is really suitable for something like a bar or a restaurant, where a lot more of the consumption is going to be in busy periods in the evening or at the weekend.
So again, it's about thinking about the time of day that your business is going to use its energy, and trying to find the right tariff for your business.
A bit further down the line, as more and more people get smart meters installed, it gives suppliers and consumers the ability to see exactly when they're using their energy throughout the day.
There will probably be more of a focus in future around the real peak periods.
That tends to be 4pm to 7pm, which is when energy is most expensive for a supplier to buy.
The reason for that is that a lot of people get home from work, they put the kettle on, they might put the oven on to cook their dinner, and there's a lot more demand for energy at that point.
That means that, essentially, it's more expensive.
Further down the line, you'll probably see more tariffs that are a little bit more tailored to certain times of the day. That's definitely the way the market will move in future.
The flip side of that is periods such as 11pm to 7am, when energy is really cheap.
So if you are a business that has a lot going on overnight, you might be a nightclub, for example. That's a great opportunity to really take advantage of cheaper rates during those periods of time.
Next, zero standing charge tariffs. Tariffs are generally made up of two elements.
There's what we call the unit rate, which is essentially the energy that you use during your operating process, and then you have the standing charge.
The standing charge is there to cover the cost of getting the energy to the meter and then maintaining that meter.
Some customers might have a business that is quite seasonal, and therefore you're only open at certain times of the year.
Equally, you might have days when you're not open. Say, for example, a restaurant might choose not to open on a Monday.
It's in these types of scenarios where it's really worth considering whether a zero standing charge tariff is best for you, because it will mean that you'll only pay for the energy you actually use.
Also, it's worth bearing in mind that, typically, the unit rate on these contracts is going to be higher than if you had a tariff with a standing charge.
That's because energy providers, such as ourselves, still have the costs of getting the energy to that meter and maintaining that meter.
Ultimately, you're paying for that within the unit rate rather than in a standing charge.
So these are great tariffs if you are only open at certain times of the week or the year. It's definitely one that's worth considering.
Finally, we're just going to talk about a couple of other tariff variants, which I think we're definitely seeing a lot more of now in the last few years.
Sustainability is becoming increasingly important for a lot of small businesses. A renewable tariff is a great option if you are looking to try and do your bit for the environment.
Renewable tariffs are generally going to be a version of a fixed tariff. So it will still be a fixed contract for a set period of time, with a set unit rate and a set standing charge.
But what it will mean, if you've got a renewable option, is that the amount of energy you use will be offset against energy that the supplier basically matches to what are called REGOs, Renewable Energy Guarantees of Origin.
So if you want to go down that route, you can guarantee that the energy your business uses has been matched against sources from wind, solar and so on.
That's a great option for really supporting a sustainable business.
Finally, there's a Smart Export Guarantee tariff. We're seeing a lot more businesses starting to explore things like solar panels and batteries.
This is a tariff that allows you, if you get solar panels for your business, to sell energy that you're not using, which has been generated by those solar panels, back to the grid. Therefore, you can make money on that generation.
So we're definitely seeing a lot more interest in things like solar and batteries, where you might be able to charge the battery overnight and then draw down from that battery during the day.
These types of things are really where the market is starting to move towards.
That's it from me on the tariff structure. Hopefully, now there are a few questions that I can answer for people.
Beth: Brilliant. Thanks very much for that, Martin. Let's go to the Q&A.
You've obviously been working in energy for small businesses for a very long time. 20 years, I think you said.
What's the single biggest tariff mistake you see small businesses make?
Martin: I've come back to my point on variable contracts.
I think it's either people not agreeing a new contract when their current fixed term ends, or just moving into a property and not exploring whether a fixed contract is best for them.
A fixed contract almost always, certainly on a like-for-like basis, means you'll be able to get a cheaper price versus what you'd be paying on a deemed rate, out-of-contract rate or renewal Freedom price, for example.
That's not to say that the market can't change and prices can go up or down.
There is the possibility that if you are on fixed and the market falls down, yes, you could still be paying more.
But I would always say, on a like-for-like basis, it's generally best to try and look to go on a fixed tariff.
Beth: That makes sense. So on that cost point, when a business owner says that they want the cheapest tariff, what would be the first thing you would say to them in response?
Martin: I would always completely understand people trying to focus on cost.
But I would also say it's worth thinking about where their business is at the moment.
If we were to go back a few years, when prices were incredibly high, then ultimately you'd have wanted to have a shorter-term contract at that point.
Whereas now, prices are still relatively high compared with where they were five or six years ago, but they're nowhere near what they were a couple of years ago.
So I'd always encourage people to think about what they can afford and what's most important to their business.
If you think you can afford this rate and that's going to give you certainty for three years, you might be better off paying a little bit more for that certainty of three years rather than agreeing a short one-year contract just because the one-year is the cheapest.
Nobody really knows what's going to happen in the next 12 months to energy costs, unfortunately. I wish we did, but we simply don't.
That one-year price that you agree now, you could find in a year's time that the price of that three-year deal would have all of a sudden looked a huge amount better because the market might have moved upwards. Equally, it can move downwards.
This is why I'd always say it's about working out what's best for your business in the circumstances that you're in, thinking about how much you're happy to budget at and trying to work out what that level is for the right length of term that you really want to commit to.
Beth: Absolutely. Brilliant. Thank you. You did a really good job of walking us through those different tariff types.
Are there any that small business owners don't know exist yet?
Martin: I think the time-of-use element is definitely one. We're absolutely starting to see suppliers think about more tailored tariffs.
If you're using lots of energy at night, then at the moment you might be thinking about an Economy 7 tariff, where you get a cheaper rate throughout the night period.
Also, renewable is worth considering. It's not a lot more than a normal fixed-term contract. Some suppliers actually would charge the same.
It's definitely worth considering if you want to really push your sustainability credentials.
Certainly, a lot of smaller businesses form part of a supply chain for larger businesses, and larger businesses do quite often want to see that sustainability element in their supply chain.
Beth: Absolutely. On timing and renewals, is there a right or wrong time of year to lock in a fixed rate?
Martin: Most suppliers will allow you to renew probably up to a year in advance of the end of your contract.
Some suppliers will allow you to renew even 18 months or even two years ahead.
Again, it's about finding the right time for your business and thinking about where your business is with its budget, and with your view on what your business is going to be doing over the next few years.
We tend to see a lot of customers wait until their renewal letter before they start engaging the market.
The renewal letter will generally go about 60 to 90 days before the end of the customer's contract.
They'll receive that, and that often triggers the customer looking into prices at that point in time.
But what I would say is that if you're within 12 months of the end of your contract, it's not going to hurt to look around at that point.
Somebody who, for example, would have agreed a price back in January, so eight months ago, whose contract might have been ending in September this year, would have got a lot cheaper price at that point than the price that's in market now, because of how wholesale prices have gone up, particularly over the summer.
So I don't think there's ever really a bad time to keep an eye on the market, particularly if you're within the last year of your contract.
You can do that by calling your supplier, speaking to their sales team or speaking to a broker, whatever channel works best for you.
Beth: That's great. Thank you. Let's look more in the Q&A.
Someone has asked: I run my business from my home. Can I have, or do I need, a small business energy tariff?
Martin: There is an option. I think it's something like if more than 60% of the consumption you're using at home is for the business rather than for your standard residential consumption, you can absolutely look at a business tariff for your property.
Some things to consider are that, within the residential market, there is protection with the residential price cap, and there isn't that protection within the small business market.
So it would be about comparing the tariff that you're currently on based on your residential usage, and working out how that compares to a small business tariff and seeing if there are some potential savings there.
But absolutely, it is possible to look at getting a small business tariff for a residential property if a good proportion of the consumption is for business use.
Beth: Fantastic. That's really good to know. A more industry-specific question here: I run an insurance company from an office. What tariff would you recommend?
Martin: If you're running an insurance company from an office, as things stand, you're probably best to be on a standard meter, which would be the same price for all of your units used.
Generally, offices are going to be in that nine-to-five space, so there's not going to be much point in getting, for example, an evening and weekend rate, where you might get a cheaper rate in the evening or weekend, because ultimately you're not going to be there using a huge amount of your energy overnight.
One thing on that, though, is definitely worth thinking about if you've got a smart meter and you're in your office.
Have a look at how much consumption is being used at the times when you aren't actually in your core working hours.
Think about whether you're doing all of the energy-saving initiatives that you could do to make sure that, outside your core office hours, you're not using too much energy.
Are you switching off monitors, for example? Are all lights being switched off overnight? Those are the things I'd really encourage people to consider.
But definitely, if you're nine-to-five based, as things stand, the standard single-rate tariff is going to be best for you.
Beth: Great. Really good to know. Around reducing usage, someone says: I work in hospitality, so my machinery, the fridges and coffee machines, are on most of the day. How can I reduce my usage?
Martin: It's a really good question. There are certainly little things you can do.
If you're in hospitality, is the fridge near a window, for example? If the fridge is near a window and it's going to be getting sunlight, maybe think about whether you can move that somewhere cooler so the fridge isn't going to have to work so hard.
With coffee machines, think about whether you're turning that off overnight.
Are you turning off everything that can be turned off, appreciating that you're not going to be able to switch a freezer or fridge off because that obviously needs to be on?
But what can I turn off to reduce my consumption? Think about things like the placement of fridges.
It might also be worth thinking about the tariff that you're on. If you're on a standard meter, thinking about moving to something like an evening and weekend meter might be better for you.
Beth: That's great. Thank you. We've got a question around smart meters.
If someone's small business doesn't have a smart meter, does this restrict what tariff they can use?
Martin: Yes, it does, in a quick answer. The government has mandated that we want to get virtually everybody, where possible, having a smart meter.
The benefit of that is that it gives customers real visibility of when they're using their energy and allows them to hopefully make some savings, change some behaviour and reduce consumption.
Ultimately, because of the way the market is going, there will be this increasing focus on peak periods. I mentioned 4pm to 7pm earlier.
In future, there is going to be much more focus on that, I think, from a supplier and customer side.
Having that smart meter, which allows you to see when your consumption is being used throughout the day, is going to become increasingly important.
A lot of suppliers will offer fixed contracts that require a smart meter to be installed as part of that contract.
So I would definitely recommend, if you don't have a smart meter, it is a great way of taking the hassle out of needing to give a monthly read to your supplier.
You're only going to be billed for the energy that you use.
You're going to be able to keep a much closer eye on when you're consuming throughout the day, and hopefully that allows you to make some savings.
Ultimately, it will broaden the number of tariff options that you have in future. So I definitely recommend a smart meter for all small businesses.
Beth: Brilliant. Thank you. We've got time for a few more questions, if that's OK with you, Martin. We mentioned the Tariff Navigator Guide a bit earlier on, which people on this call are going to receive afterwards.
Could you give a brief overview of the kind of things they can find in it?
Martin: It should give you the overview of fixed and variable tariffs. It will help you try to work out what the best option is for your business.
So definitely make sure you have a good look at that, and hopefully it'll give you some great advice to make sure you end up on the right tariff that suits the needs of your business.
Beth: Perfect. Thank you. As a wrap-up, what's the one thing about energy tariffs that you wish more small business owners understood?
Martin: Without coming back to it again, it's definitely the variable versus fixed debate.
We've probably got just under a third of our customers who are on a variable product, and a lot of those could make a saving by signing up to a fixed tariff.
So definitely think about a fixed tariff, get a smart meter and ideally pay by direct debit. It will just make energy really easy for you.
You'll only pay for the consumption that you use. You should get the best possible price by focusing on fixed and having a smart meter.
Beth: Brilliant. That brings us to time. Thank you so much to everyone for joining us today for the Powering Local Businesses Lunch and Learn.
As I mentioned earlier, we'll be sharing the recording and the links to the videos, which unfortunately weren't working today, along with the Tariff Navigator Guide in an email later today.
Huge thank you to Martin for sharing his expertise with us. That was a really great session.
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