HomeBusiness energySSE pricing review – Business energy products and prices guide

SSE pricing review – Business energy products and prices guide



Last updated on 29 August 2024

SSE (Scottish and Southern Energy) is one of the UK’s leading energy suppliers, offering a range of products tailored specifically for business customers. In this guide, we will explore SSE business energy products, review their pricing models, and offer insights into how businesses can manage their energy costs effectively.

Understanding SSE business energy products

SSE provides a variety of energy solutions to meet the diverse needs of businesses, from small enterprises to large corporations. Their offerings can be broadly categorised into electricity and gas supply, with further differentiation based on contract types, such as fixed-rate, variable-rate, and bespoke packages.

  1. Fixed-rate contracts: These contracts offer a set price per unit of energy over a specified period, typically ranging from one to three years. Fixed-rate contracts are popular among businesses seeking budget certainty, as they protect against market fluctuations.
  2. Variable-rate contracts: Also known as ‘flexible’ or ‘standard’ contracts, these allow the price per unit of energy to fluctuate with market conditions. While potentially offering lower prices during periods of market decline, variable-rate contracts carry the risk of increased costs during market upswings.
  3. Bespoke packages: SSE also offers tailored energy solutions for larger businesses with specific requirements. These bespoke packages can include features such as energy efficiency consultancy, renewable energy options, and multi-site management.

SSE business energy indicative price list – Gas and electricity

Contract TypeEnergy TypeAnnual Consumption (kWh)Unit Rate (pence/kWh)Standing Charge (£/day)
Fixed-rate (1 year)ElectricityUp to 10,00015.500.30
Fixed-rate (1 year)Electricity10,000 – 50,00014.800.35
Fixed-rate (1 year)GasUp to 10,0004.200.15
Fixed-rate (1 year)Gas10,000 – 50,0004.000.18
Fixed-rate (3 years)ElectricityUp to 10,00014.900.28
Fixed-rate (3 years)Electricity10,000 – 50,00014.200.33
Fixed-rate (3 years)GasUp to 10,0004.100.14
Fixed-rate (3 years)Gas10,000 – 50,0003.900.17
Variable-rateElectricityUp to 10,00016.00 – 18.000.25 – 0.35
Variable-rateGasUp to 10,0004.50 – 5.000.12 – 0.20
Renewable EnergyElectricityUp to 10,00016.500.32
Renewable EnergyGasUp to 10,0004.700.19
SSE business energy price list – Indicative

Notes:

  1. Contract Type: The table lists different contract types, such as fixed-rate contracts for one year and three years, variable-rate contracts, and renewable energy options.
  2. Energy Type: Includes electricity and gas options tailored for businesses.
  3. Annual Consumption (kWh): The pricing is segmented based on the annual energy consumption levels, which can influence unit rates.
  4. Unit Rate (pence/kWh): This is the price per unit of energy consumed, expressed in pence per kilowatt-hour (kWh). It varies by contract type, duration, and consumption level.
  5. Standing Charge (£/day): This daily fee covers the cost of maintaining the energy supply to the business premises. It is usually a fixed amount that is charged irrespective of the energy usage.

These sample rates are indicative and can vary based on market conditions, specific business requirements, and negotiations. For accurate and up-to-date pricing, businesses should directly consult with SSE or their energy advisor.

SSE business pricing models

SSE’s pricing for business energy is influenced by several factors, including market conditions, the size and type of business, and the chosen contract type. Below, we outline the key elements that impact pricing:

  1. Market conditions: Wholesale energy prices, driven by supply and demand dynamics, geopolitical events, and regulatory changes, directly impact the cost of energy for suppliers like SSE. These costs are often passed on to customers, particularly those on variable-rate contracts.
  2. Business size and usage: Larger businesses with higher energy consumption may benefit from economies of scale, resulting in lower unit prices. Additionally, businesses that use energy during off-peak hours may be eligible for reduced rates.
  3. Contract length and terms: Longer-term contracts may offer more competitive pricing as they provide suppliers with revenue certainty. However, businesses need to carefully consider the trade-offs between fixed-rate stability and the potential savings of a variable-rate contract.
  4. Renewable energy options: As sustainability becomes increasingly important, SSE offers green energy options that may come at a premium. These options allow businesses to demonstrate their commitment to reducing carbon emissions and supporting renewable energy sources.

How businesses can manage energy costs

Effective management of energy costs is crucial for maintaining profitability and sustainability. Here are some strategies businesses can employ:

  1. Conduct an energy audit: Understanding current energy usage patterns is the first step towards optimisation. An energy audit can identify inefficiencies and areas for improvement, such as upgrading to energy-efficient equipment or implementing better operational practices.
  2. Consider fixed-rate contracts: For businesses that value cost predictability, fixed-rate contracts can offer peace of mind by shielding them from market volatility. However, it’s important to review contract terms carefully to ensure they align with the business’s needs.
  3. Explore renewable energy options: Investing in renewable energy sources, such as solar panels, can reduce dependency on traditional energy supply and potentially lower costs in the long run. Additionally, choosing green energy tariffs can enhance a company’s sustainability credentials.
  4. Monitor market trends: Staying informed about market trends and regulatory changes can help businesses make timely decisions regarding contract renewals and energy purchasing strategies. Working with an energy broker or consultant can provide valuable insights and support.
  5. Negotiate with suppliers: Engaging in negotiations with suppliers like SSE can sometimes lead to more favourable terms, particularly for larger businesses or those willing to commit to longer contracts.

For more, see our business energy comparison, and our price lists for business gas and business electricity.

SSE business energy pricing FAQ

How does SSE determine its business energy pricing?

SSE determines its business energy pricing based on several factors, including the type of contract, energy consumption, and market conditions. For example, a fixed-rate electricity contract for a small business with an annual consumption of up to 10,000 kWh typically has a unit rate of 15.50 pence per kWh and a standing charge of £0.30 per day. Larger businesses with higher usage may see rates of 14.20 pence per kWh for a three-year contract, with a standing charge of £0.33 per day.

What are the differences in SSE pricing for fixed-rate and variable-rate contracts?

SSE offers different pricing structures for fixed-rate and variable-rate contracts. A fixed-rate contract locks in a price per unit of energy for the contract duration, such as 14.90 pence per kWh for a three-year electricity contract with a standing charge of £0.28 per day. In contrast, variable-rate contracts can range from 16.00 to 18.00 pence per kWh for electricity, with standing charges ranging from £0.25 to £0.35 per day, depending on market conditions.

Does SSE offer different pricing for electricity and gas for business customers?

Yes, SSE offers different pricing for electricity and gas. For instance, a one-year fixed-rate gas contract for a business using up to 10,000 kWh annually might have a unit rate of 4.20 pence per kWh and a standing charge of £0.15 per day. On the other hand, a similar one-year fixed-rate electricity contract could be priced at 15.50 pence per kWh with a standing charge of £0.30 per day.

How does SSE renewable energy pricing compare to standard energy pricing?

SSE renewable energy pricing is generally higher than standard energy pricing to account for the costs associated with sourcing and supplying green energy. For example, renewable electricity might be priced at 16.50 pence per kWh with a standing charge of £0.32 per day, compared to a standard fixed-rate electricity price of 15.50 pence per kWh and a standing charge of £0.30 per day.

What are the standing charges in SSE business energy contracts?

SSE includes standing charges in its business energy contracts, which cover the cost of maintaining the energy supply. These charges vary by contract type and energy consumption. For instance, a fixed-rate electricity contract might have a standing charge of £0.30 per day, while a variable-rate contract could range from £0.25 to £0.35 per day. Gas contracts might have lower standing charges, such as £0.15 to £0.18 per day, depending on the terms.

Are there any discounts available in SSE’s business pricing for high consumption?

SSE may offer more competitive rates for businesses with high energy consumption. For example, a fixed-rate electricity contract for a business using between 10,000 and 50,000 kWh annually might be priced at 14.80 pence per kWh, compared to 15.50 pence per kWh for lower consumption levels. Similarly, higher usage gas contracts might offer unit rates as low as 3.90 pence per kWh with a standing charge of £0.17 per day for a three-year contract.

How does SSE’s business pricing change with contract length?

SSE’s business pricing can vary based on contract length. Typically, longer contracts offer slightly lower rates. For example, a one-year fixed-rate electricity contract might be priced at 15.50 pence per kWh, whereas a three-year contract could offer a rate of 14.90 pence per kWh. Standing charges also vary, with one-year contracts around £0.30 per day and three-year contracts around £0.28 per day.

What are the specific costs associated with SSE’s business gas contracts?

SSE’s business gas contracts have specific costs based on consumption and contract type. A one-year fixed-rate gas contract for a business using up to 10,000 kWh annually might have a unit rate of 4.20 pence per kWh and a standing charge of £0.15 per day. For larger consumption levels, such as 10,000 to 50,000 kWh annually, the rate could drop to 4.00 pence per kWh, with a standing charge of £0.18 per day.

How does SSE’s pricing adjust for off-peak energy usage?

SSE’s pricing can include adjustments for businesses that use energy during off-peak times. While specific rates can vary, businesses may see reduced unit rates if they consume the majority of their energy during these off-peak periods. For example, off-peak electricity might be priced at a lower rate than the standard 15.50 pence per kWh for fixed-rate contracts, potentially saving businesses on their overall energy costs.

Can businesses negotiate SSE pricing to suit their specific needs?

Yes, businesses can negotiate SSE pricing, especially if they have unique energy needs or high consumption. SSE may offer bespoke packages with tailored rates. For example, a business with multiple sites and high energy usage might negotiate rates lower than the standard 14.80 pence per kWh for electricity, potentially securing better pricing by committing to a longer contract duration or specific usage patterns.