Find the Best Deal
How Can I Compare Electricity Rates and Find the Best Deal for My Business?
Electricity costs can make up a significant portion of your operating expenses. That’s why finding the best supply rate is critical to your bottom line. But with so many suppliers, rate structures, and contract terms, it can be difficult to know where to start.
This article explains how to compare electricity rates for your business and make sure you're getting the best possible deal.
Start with a Comparison Tool or Energy Broker
The fastest way to compare electricity rates is to use a trusted comparison tool or work with a licensed energy broker. These tools pull live rates from multiple suppliers and allow you to view contract options side by side.
A broker can also help you understand the fine print, negotiate terms, and select a plan that fits your energy usage patterns.
Review the Price per Kilowatt-Hour (kWh)
The most basic way to compare offers is by looking at the price per kilowatt-hour. This is the unit rate you’ll pay for the electricity your business consumes. However, be cautious. A lower kWh rate doesn’t always mean a better deal.
Some suppliers include additional costs in the kWh rate, while others break them out separately.
Understand What’s Included in the Rate
Ask each supplier exactly what is included in the quoted rate. You’ll want to confirm whether the following components are built into the price or passed through as separate charges:
-
Capacity
-
Transmission
-
Ancillary services
-
Swing or usage tolerance
-
Taxes
Knowing what’s bundled and what isn’t will help you compare apples to apples.
Check the Contract Length
Electricity contracts for businesses typically range from 6 to 36 months. The term you choose can affect your rate:
-
Shorter contracts may offer flexibility but higher risk due to market volatility
-
Longer contracts usually offer price stability but may miss out on future rate drops
Choose a contract length that aligns with your business’s financial strategy and risk tolerance.
Watch Out for Hidden Fees
Hidden costs can drastically affect your monthly bill. Always review the supplier’s terms for additional charges like:
-
Capacity tag pass-throughs
-
Penalties for exceeding or falling below usage forecasts
-
Early termination fees
-
Administrative or billing charges
Request a sample invoice or full contract summary before signing.
Match the Rate Structure to Your Usage Profile
Suppliers offer different rate structures. The two most common are:
-
Fixed rate: Your rate stays the same throughout the contract
-
Variable rate: Your rate changes with the energy market
A fixed rate offers budget certainty. A variable rate can offer savings during low-price periods but comes with higher risk.
Also, evaluate your load factor. Businesses with steady, predictable usage often qualify for better rates. If your usage is spiky or seasonal, discuss custom pricing or demand management strategies.
Compare Regularly and Lock in When the Market Is Favorable
Energy markets change daily. Rates can rise or fall based on natural gas prices, weather, and grid demand. Regularly checking prices helps you avoid renewing at a peak.
For best results, start shopping 60 to 90 days before your current contract expires. Many experts also recommend locking in rates midweek, when suppliers have a clearer view of market trends.
Summary
To find the best electricity deal for your business:
-
Use a comparison platform or energy broker
-
Review all pricing details, not just the rate per kWh
-
Confirm what is and isn’t included in the offer
-
Match the contract structure to your usage and risk level
-
Watch for hidden fees and demand charges
-
Compare regularly and lock in when pricing is favorable
Making an informed decision on your electricity supply can lead to long-term savings and budget stability.