Why finding the energy tariff that fits is so important
)
Posted: Fri 3rd Oct 2025
Finding the right energy tariff is vital to your small business's success, not only in terms of potential savings, but by setting up your venture for the long term.
As energy bills make up a significant chunk of your operating expenses, learning how best to select the correct supplier and tariff is an easy way to protect your business's future from unexpected price hikes.
With the right one, your small business tariff can help you unlock savings, lower your carbon emissions and give your business breathing room to grow – all while giving you that edge over competitors paying higher rates.
Following the expert advice in our Powering the High Street guide could help you free up extra cash to invest in growing your passion, allowing you to keep prices low for your customers while seeing your business thrive.
Read on to learn more about the range of fixed and variable small business tariffs that will help your small business save cash and carbon as you continue to grow.
Switching to a fixed small business tariff with EDF could give you the chance to win a £150 Amazon voucher. Find out more below...
Small business tariffs available to you now
Fixed tariffs
Fixed-term small business tariffs are tailored to address any concerns you may have around cash forecasting. They give your business an extra layer of protection from unexpected price changes in the energy market.
Here are the most common types of fixed tariffs:
Time-of-use
What is it?
An energy plan where the price of electricity changes depending on the time of day.
Unit rates are cheaper during off-peak hours when demand is low and more expensive during peak hours when demand is high.
How can my business benefit?
Save cash by switching your energy usage to off-peak hours. This lets you put more investment into other areas of your business.
If your business has battery storage facilities, charge up during off-peak hours, then use that energy during peak times. You'll avoid peak unit rates entirely!
Who is it suitable for?
Small businesses that are flexible in their energy consumption or have battery storage facilities.
Interested in time-of-use fixed tariffs and want to make even greater savings? Find out more
Zero (or no) standing charge
What is it?
Your small business will only be charged a unit rate for the actual amount of energy it consumes in any given month.
Often, the unit rate for these tariffs is higher to cover standing charge costs. Learn more about the difference between unit rates and standing charges
How can my business benefit?
Make potential savings by avoiding paying for standing charges during months where you consume little to no energy.
Who is it suitable for?
Small businesses with seasonal peaks and troughs in their energy consumption.
Potential savings for owners of small businesses that close or operate at reduced hours during certain times of year such as seaside cafés and giftshops or pop-up Christmas market stalls.
If your business closes entirely for a period of time, you'll pay nothing on your energy bill.
One- to four-year tariff
What is it?
Choose how long you want to lock in the price of your unit rate and standing charge. You'll have full flexibility on the length of your fixed contract, which makes predicting your business costs much simpler.
How can my business benefit?
One- or two-year fixed tariffs can give your business stability while maintaining short-term flexibility, allowing you to react to unexpected changes.
Three- or four-year fixed tariffs protect your business further, for longer. This helps secure your business's future and lets you focus on what really matters when it comes to growth.
Who is it suitable for?
Business owners who want greater confidence and certainty for their business's long-term future, but seek flexibility in the short term.
Variable tariffs
When you own a small business, you're often having to adapt quickly to things going wrong. For some owners, flexibility in these cases is often essential.
Variable tariffs provide that flexibility to help your business navigate change and keep growing smoothly.
Deemed
What is it?
When you move in to a new property, your small business will automatically be enrolled onto the deemed tariff – if you haven't agreed to a new tariff beforehand.
These tariffs charge a higher unit rate and standing charge than fixed tariffs due to the potential debt costs involved.
A deemed tariff can include a risk premium due to there being no formal agreement between you and the energy provider, or any assurances that you'll make payments in the future.
How can my business benefit?
Make potential savings by easily switching to a tailored small business tariff without worrying about exit fees.
Don't stay on a deemed tariff. Seek an alternative tariff as soon as possible so you can avoid the higher costs.
Who is it suitable for?
Small businesses going through periods of transition.
If you want time to explore tariffs, switch to a standard variable tariff. It's often cheaper than a deemed tariff but has the same flexibility.
In this video, an EDF energy specialist explains why switching from a deemed tariff to a fixed tariff is the company's top tip when advising small business owners who want to cut costs.
Roll-over
What is it?
When your agreed fixed tariff ends, your small business will be automatically enrolled onto a roll-over tariff.
How can my business benefit?
Variable tariffs don't involve any exit fees, giving your business the ultimate flexibility.
But despite the increased flexibility, the potential volatility of energy prices means there's also a higher level of risk compared to fixed tariffs.
Who is it suitable for?
Not sure about your business's next steps? Roll-over tariffs mean you can continue to benefit from competitive rates while you decide on your next contract.
Standard variable
What is it?
Standard variable tariffs are open to anyone and charge both a standard unit rate per kilowatt-hour (kWh) of energy consumed and a daily standing charge.
How can my business benefit?
There are no exit fees, which means you can react quickly to any changes that occur while you're running your business.
Who is suitable for?
Is your business just starting out? In those early stages, standard tariffs are a great way to compare other tariffs and potentially save money.
Alternative small business tariffs
Over the last few years, a number of new tariffs have been introduced to support small business owners' changing needs and net zero ambitions.
Here's how your business could save even more while reducing its carbon emissions.
EV tariffs
Do you use an electric vehicle to run your business? Dedicated EV tariffs could help you charge up for less.
Choose an EV fixed contract and you could save even more money, as you'll be rewarded for powering your business overnight with the cheapest electricity available.
Solar
Equip your business with solar panels to benefit from feed-in tariffs that pay you and your business for the energy you generate.
Your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate.
Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 20 years) and are index-linked.
Our top tip: If you invest in battery storage (see below), you can store the free energy your solar panels generate and use it to power your business – ultimately at no cost.
Not a tariff – but a game-changer for small businesses
Battery storage
If you have solar panels, you can store the energy your solar panels generate and use it whenever your business needs it most.
Your small business could make further savings by generating energy for later use.
If your business operates at peak-consumption times, you could save the most by avoiding peak-time unit rates.
PODCAST: EDF's Jon Perks on helping small firms save cash and carbon
In this episode of the Small Business Retail Sessions, Jon shares clear, practical advice on how to cut energy costs, improve efficiency and navigate change with confidence:
Why your business needs a small business tariff
Whenever you're buying energy for a business premises, you need to take out a small business energy tariff.
There are several key differences between a small business energy tariff and the one you have at home.
With a small business tariff, you must pay tax as well as the Climate Change Levy (explained below). You'll also find that consumption bands are common.
If you're on the larger end of the small business scale, you could benefit from economies of scale, generating further savings for your business.
Climate Change Levy and VAT
Business energy contracts also carry the Climate Change Levy, an environmental tax designed to encourage firms to use less power.
This is charged as a relatively small levy on each kilowatt-hour (kWh) of gas or electricity you use.
Business energy is generally taxed at 20%. The lower VAT rate of 5% is for businesses that use low amounts of power.
Small business tariffs incorporate these often forgotten and confusing fees into your monthly bill.
Pricing structures
Small business tariffs:
are designed for higher patterns of usage
give your small business greater value than traditional household tariffs
enable your business to become more efficient and invest more in its growth
Flexibility
You have a wide range of both fixed and variable tariffs available to you.
Small business tariffs give you and your small business the power to choose the tariff that matches your goals and priorities.
What makes up small business tariffs?
All small business tariffs have two key components: the unit rate and the standing charge.
Unit rate
A set price you pay for every unit or kilowatt-hour (kWh) of energy your business consumes.
Fixed tariffs allow you to fix your unit rate for a period of time, giving you greater certainty.
The unit rate you pay with a variable tariff can change depending on energy market conditions and other factors.
Standing charge
A daily charge associated with infrastructure and energy supply costs.
This charge remains constant regardless of how much energy your business consumes during the month.
For smaller businesses with lower energy use, a low/no standing charge tariff may save you money, despite higher unit rate costs.
Still confused and want to know more?
Watch EDF's video on what makes up your business energy invoice and why it changes.
Choosing the best tariff for your business's needs
Don't just consider the final bill. Here's what else to think about when comparing small business tariffs.
"Choosing an energy tariff is all about the level of risk you are comfortable with." – Jon Perks, small business manager at EDF
Use your average energy consumption in kilowatt-hours (kWh)
Compare which tariff is most suited to your average energy usage in kWhs rather than how much you pay for your monthly bill.
Your unit rate and final bill is likely to fluctuate month-on-month whereas average consumption generally remains more consistent.
Struggling to calculate your average consumption or just want to find out more? Read EDF's blog on how to calculate your small business's average energy use.
Understand both your unit rate and standard charges
As we've explained above:
Unit rate: The rate charged per unit or kWh of electricity or gas you use.
Standing charge: A compulsory fixed charge that covers the supplier's cost of maintaining the energy network, taking meter readings and supporting social and environmental schemes.
Both your business's unit rate and standing charge can vary massively depending on the small business tariff you choose.
Understanding your business's patterns of energy use, and the tariffs available to you, is crucial if you're to keep your energy costs down and continue to grow.
Consider seasonal fluctuations
Your business's energy needs may vary depending on seasonal demand.
Choosing small business tariffs such as the No standing charge tariff could help save your business cash on unnecessary standing charges.
Location specific quotes: Vary by region
Due to the differing energy infrastructure and demand across the UK, it's important to consider location-specific quotes, as energy costs may vary across regions.
Your business's acceptable level of risk
Your ideal small business tariff will depending on your business's tolerance of risk and yours personally.
Shorter-term fixed tariffs allow for flexibility when you need to react to changing energy prices.
Longer-term tariffs with predictable costs give you extra peace of mind when you're planning for your future.
Seeking long-term comfort and certainty?
Adjust your fixed tariff length to suit your business's needs.
Freezing your unit rates and standing charges for the length of your time you're with your supplier protects your business from unexpected price rises. That way, you can put all your energy into growing your business.
At EDF, we're here to help. Take a look at Sophie's profile and give us a call if you'd like to find out more!
Next steps
Want to learn more from experts about how to make your high-street business thrive? Download the free Powering the High Street guide for even more expert support, smart energy advice and practical tools see how your small business can continue to grow sustainably.
Ready to make savings with EDF's small business fixed energy tariffs? Fix your energy tariff with EDF and claim a £150 Amazon voucher!
What to do now
EDF has two "sales journeys" you can follow. Simply choose which one you prefer:
Call EDF's dedicated small business sales team on 0333 188 6725 and quote "EN-EDF".
Complete EDF's online sales journey – it takes less than 10 minutes.
Choose a fixed tariffs for one, two, three or four years. Once your EDF account is live, we'll email your Amazon voucher within 60 days.
People also read
Bringing new energy to the UK's high-street businesses
We're helping small businesses thrive on the high street – through expert support, smart energy advice and practical tools to grow sustainably. Get free support now
Get business support right to your inbox
Subscribe to our newsletter to receive business tips, learn about new funding programmes, join upcoming events, take e-learning courses, and more.
Start your business journey today
Take the first step to successfully starting and growing your business.
Join for free