Thinking of opening a business? You’ll need to make sorting out your business electricity a top priority because it’s an entirely different world to domestic rates. In this business electricity guide, we’ll walk you through how the business electricity market works in Ireland and how to get started!
How Does Business Electricity in Ireland Work?
Business electricity is a very different world to domestic electricity. Whereas with domestic electricity you’ll usually get a range of options for your residential home, with businesses that usually use a lot more electricity, the process is a bit more complicated!
How Much Energy Does a Business Need?
Depending on the size of your business, the amount of business electricity you will consume will be different. According to the Central Office of Statistics (CSO), businesses paid for €8.2 billion of energy-related products in 2019 which makes business a main consumer of energy.
On average, the bigger the business, the more electricity you’ll need. Here’s a breakdown of the kilowatt hours (kWh) consumed by each business size:
| Business Size | Number of Employees | Average Annual Electricity Usage |
|---|---|---|
| Microbusiness | Less than 10 | 5,000 - 15,000 kWh |
| Small business | 11 to 50 | 15,000 - 25,000 kWh |
| Medium business | 51 to 250 | 25,000 - 50,000 kWh |
Given that the average household uses 4,200 kWh of electricity a year, you can see that businesses are very energy intensive!
Is Business Electricity Cheaper Than Domestic?
Business electricity does tend to be cheaper than domestic electricity, however this is usually the case for two reasons: a lower unit rate and longer term contracts.
- Lower Unit Rate
In business energy contracts, you’ll usually get a lower unit rate when it comes to how much you pay per kWh used. However, this is due to the fact a business uses more kWhs in a year than a domestic household so ultimately they pay the same or even more at the end of the year. - Long Contract Terms
Since business electricity contracts tend to be very specific to the business being supplied, suppliers usually have longer contract terms that can extend over years. Since they’re more restrictive, suppliers will generally be happier about offering cheaper electricity.
What Are Business Electricity Tariffs Like in Ireland?
Business electricity tariffs greatly depend on the type of business you’re running. Since businesses are so varied and might require electricity at different times of the day. For example, if you run a restaurant you’ll want to maybe have a cheaper rate in the evening when you’re serving the most customers.
Business electricity contracts are normally bespoke where they have been specifically catered to your individual company’s needs when it comes to energy usage. When you contact a business electricity provider for a quote, they will usually need a lot more details about your usage habits before you get a figure!
- Fixed or Variable Rates
If you have a regular meter for your business, you’ll usually be able to choose between a fixed rate versus a variable rate. With a fixed rate, your unit rates will be fixed during the term of your contract. If they’re variable, they will fluctuate according to the wholesale market price. - Half-Hourly Meter Tariffs
If you have a half-hourly meter, this means your meter will record a reading every thirty minutes. This is great for energy intensive businesses so you get an accurate bill at the end of the month. Business electricity customers with half-hourly meters benefit the most from bespoke contracts.
Can I Get a Dual Fuel Tariff as a Business?
With domestic electricity users, you can usually get your gas and electricity for a cheaper price if you keep them both with the same company. With business electricity and gas, this can be a little more complicated since the contracts are usually bespoke and custom. However, you might be able to find a business electricity provider who will also supply you your gas at a discount!
Do businesses pay higher VAT for business electricity? Where residential electricity customers pay 9% VAT on their electricity, business electricity users pay 13.5%. This is quite a bit more than residential customers have to pay and this is not including the other charges such as the PSO levy and the carbon tax!
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Who Is the Cheapest Business Electricity Supplier in Ireland?
Getting a quote for your business energy can be very difficult since each company will want to offer you a tailored tariff to your needs. So finding the cheapest business electricity provider isn’t as easy as just comparing rates. There are also different providers who just focus on business electricity so the market might not be as similar to the residential one.
Which Providers Supply Business Electricity in Ireland?
There are eleven different providers who supply business electricity in Ireland. The majority of them also provide domestic electricity, but there are some who don’t. Here’s a list of the business electricity providers:
| Provider | Business Contact Number | Business Gas As Well? |
|---|---|---|
| Arden Energy | 1800 940 151 | No |
| Bord Gáis Energy | (01) 233 5000 | Yes |
| Cenergise | (01) 554 3635 | No |
| Energia | 0818 363 744 | Yes |
| Electric Ireland | 1800 305 070 | Yes |
| Flogas | 041 214 9500 | Yes |
| Go Power | (01) 866 5612 | No |
| Pinergy | 0818 363 749 | No |
| PrepayPower | 1800 929 053 | Yes |
| SSE Airtricity | 0818 812 144 | Yes |
| Waterpower | +353 (0) 29 50568 | No |
Can You Have Prepay Business Electricity?
You can also opt for prepay business electricity with some suppliers who offer it. This would mean you would pay for your electricity in advance with a pay-as-you-go plan. So you can choose this with the following suppliers:
- Electric Ireland
- PrepayPower
- Pinergy
Although it might be an option to explore, it’s advisable to use direct debit or a monthly bill for your business electricity. You don’t want to run out of electricity in the middle of cutting a client’s hair!
How Do I Switch Business Electricity in Ireland?
Though the looking around comparing quotes takes a little longer than with residential electricity, switching business electricity can be a simple process. However if you’re actually moving business properties, you might have to do a disconnection to get registered in your new property.
What Do I Need for a Business Switch?
In order to switch business electricity, you’ll need to make sure you’re happy with the quote that you’d like to go with since many business electricity contracts are for the long term. After that, you’d need to confirm the following with your chosen business electricity provider:
- Your Details
You’ll need to make sure that the name on the bill is the correct one and is also authorised to make decisions on behalf of the business. You’ll also need to provide your contact details and address. - Business Name
You’ll also need to provide your business’ name and address so you get the supply to the right address. You’ll also need to provide the business contact details as well. - MPRN
You’ll need to make sure your new business electricity provider has your Meter Point Reference Number (MPRN) for your business address. This is really important so you don’t switch the wrong address and for knowing whether you have a high-hourly meter or just a regular one. - Annual Usage
If you want to get the most accurate business electricity quote possible, you’ll need to provide your annual consumption. You can usually find this on previous bills if you can find one!
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Is There Any Support for Business Electricity Customers?
In the Budget 2024 that the government announced in September 2022, there are a number of measures that have been put in place to help businesses deal with the inflationary crisis. The main measure for business energy companies has been the Temporary Business Energy Support Scheme (T-BESS) which is providing €1.25 billion to small and medium sized businesses in Ireland.
What Is in the Temporary Business Energy Support Scheme?
The Temporary Business Energy Support Scheme is protecting business electricity customers in several ways:
- A maximum of €10,000 for relief of up to 40% of the increased energy prices
- The unit rate price in 2022 will be made comparable to the one in 2021
- There will be support offered if the price rises a further 50%
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