Is Business Energy cheaper than Domestic Energy?

22/06/2023

Business energy is considered to be cheaper than domestic energy. This is because business energy is sold in higher volumes to businesses due to their high consumption as compared to energy consumption by domestic users. Businesses pay a lower per unit price for energy, largely due to volumes and economies of scale. However, businesses often use more energy than households, and many have to pay 20% VAT on their bills, then business energy bills seem more expensive.