The average business electricity prices have increased by 70% since 2007 — almost Double the Rate of Inflation
The largest consumers of electricity have been hit the worst with a price increase of 88%. Even the smallest businesses have seen their bills grow by 58%.
Since 2007 the average price paid per kWh by business consumers for their energy has risen by a staggering 70%, almost double the inflation rate (36.6%).
Some of the largest consumers of electricity have been hit hardest with price hikes of 88% — growing almost 2.5x the rate of inflation over the same time period.
Energy experts Business Electricity Prices have analysed data obtained by the Department for Business, Energy and Industrial Strategy (BEIS) to show how fast electricity rates paid have increased since 2007.
Commercial Electricity Prices 2007 – 2018 (per kWh)
The average price paid excluding VAT for each size of business (defined by the amount of energy they use - full definitions here)
Average business electricity prices % increase 2007-18: 70%
Inflation increase (2007-2018): 36.3% (Bank of England)
The rises in energy costs are partly due to wholesale market price rises, but also from government levies (inc. Climate Change Levy) and other network costs. Only micro and medium-sized businesses have escaped paying more than the rate of inflation.
The data shows that since 2007, all businesses experienced price rises, but these vary depending on the annual consumption of energy:
● Microbusinessesusing less than 20 Mwh (20,000 kWh) saw the lowest rise with an average price rise of 58%.
● Large industrial consumersof electricity saw the highest increases over ten years with an 88% hike.
Per kWh industrial consumers still pay less than smaller businesses. This is because they use more electricity and can receive it at higher voltages, so supplying electricity to these customers is more efficient and less expensive. The graph shows how prices increased since 2007 for every business size.