Same supplier. Same standard business meter. A different price depending on where you are.
EDF’s published deemed electricity rate for a business on Direct Debit is 55.21p/kWh in London and 66.36p/kWh in North Wales and Merseyside - a 20% gap inside one supplier’s price list (EDF (opens in new tab)). npower’s default rate runs from 47.22p/kWh in London to 52.49p/kWh in North Scotland (npower Business Solutions (opens in new tab)). Negotiated contracts are cheaper than these default rates, but they’re priced region by region in the same way.
Rates in this article are suppliers’ published default and deemed rates for a standard (non-half-hourly) business meter, before VAT, checked on 31 October 2026. Network charges are from each network operator’s 2026/27 charging statement.
TL;DR: Key Takeaways
The gap: Meet George’s comparison of published rates found one supplier’s electricity rates differ by up to 20% between regions. London is the cheapest region on both price lists we checked; Merseyside and North Wales and North Scotland are among the dearest.
The cause: Network charges. Each of the 14 network areas sets its own distribution charges, and transmission charges vary by location, so suppliers price every region separately.
Size matters more: DESNZ figures show the smallest businesses pay about 72% more per kWh for electricity than the largest - a bigger gap than any region.
What you can do: Know your region, check whether your contract fixes network charges, compare quotes on total annual cost, and treat your supplier’s default rate for your region as a ceiling, not a benchmark.
How Do Business Energy Prices Vary by Region?
Business energy prices in the UK vary by region because suppliers price each of Great Britain’s 14 network areas separately. The clearest public evidence is suppliers’ own published rates. Meet George’s regional default-rate comparison (October 2026) lines up what npower and EDF charge a business on a standard meter in every region, ranked from cheapest to dearest by npower’s default rate:
| Region | npower default unit rate | npower default standing charge | EDF deemed unit rate |
|---|---|---|---|
| London | 47.22p | 190.98p | 55.21p |
| West Midlands | 47.82p | 214.24p | 56.23p |
| Yorkshire | 47.99p | 214.81p | 56.99p |
| East of England | 48.21p | 208.51p | 55.47p |
| East Midlands | 48.32p | 204.76p | 55.97p |
| South Scotland | 48.60p | 221.43p | 59.01p |
| Southern | 48.61p | 208.35p | 56.48p |
| South East | 48.72p | 205.95p | 55.97p |
| North East | 48.79p | 214.76p | 56.23p |
| North West | 50.25p | 197.77p | 58.51p |
| South Wales | 50.51p | 216.40p | 58.25p |
| Merseyside and North Wales | 51.17p | 227.20p | 66.36p |
| South West | 51.73p | 216.35p | 58.51p |
| North Scotland | 52.49p | 220.98p | 61.80p |
npower default rates from 1 October 2026, lowest standing charge band, before VAT and the Climate Change Levy (npower Business Solutions (opens in new tab)). EDF deemed rates for a standard meter on Direct Debit from 17 August 2026, before VAT; EDF’s standing charge is 215p a day in every region (EDF (opens in new tab)). EDF calls the Merseyside and North Wales region “North Wales”.
These are the rates you pay if you don’t arrange a contract, so they’re a ceiling rather than what most businesses pay - see how default rates compare with fixed contracts. But the pattern matters: Meet George’s comparison found the same supplier, on the same tariff, charges up to 11% more (npower) or 20% more (EDF) depending on where your meter is.
In Liverpool or elsewhere on Merseyside? You’re in the Merseyside and North Wales region - see how to switch commercial energy in Liverpool, including what default rates cost there.
In Lancashire? You’re in the North West region - see how to switch commercial energy in Lancashire.
What Are Typical Commercial Electricity Rates in the UK?
Typical commercial electricity rates in the UK averaged 24.51p per kWh in April to June 2026, including standing charges and the Climate Change Levy but not VAT, according to the government’s DESNZ figures. Small businesses pay more: those using up to 20,000 kWh a year averaged 38.36p/kWh, against 22.25p for the largest users.
Business Size Matters More Than Region
Where you are is one factor; how much you use is a bigger one. DESNZ publishes the average price businesses actually pay, by size, including standing charges and the Climate Change Levy but not VAT (DESNZ (opens in new tab)):
| Business size | Electricity (p/kWh) | Gas (p/kWh) |
|---|---|---|
| Smallest (DESNZ Very Small band) | 38.36p | 9.31p |
| All businesses (average) | 24.51p | 5.28p |
| Largest | 22.25p | 3.97p |
DESNZ table 3.4.2, April to June 2026. “Smallest” is the Very Small band (electricity up to 20,000 kWh a year; gas under 278,000 kWh); “Largest” is the Extra Large band for electricity and Very Large for gas.
On those figures, the smallest businesses paid about 72% more per kWh for electricity than the largest - more than the gap between any two regions in the price lists above. Ofgem’s January 2026 report notes “persistent gaps, with very small firms paying the highest price”, and links smaller firms’ higher prices to “higher credit risk and shorter-term contracts” (Ofgem State of the Market, January 2026 (opens in new tab)). A broker fee built into the unit rate adds to that - see how broker uplift works and when a broker is worth paying.
These are averages of what businesses paid, not quotes: your own rate depends on your usage, region, contract and when you signed. To see where yours sits, upload your latest bill - Meet George’s free bill check works out your all-in price per kWh and compares it with the DESNZ average for businesses your size.
Why Do Prices Differ by Region?
Your energy bill isn’t one charge. It’s built from several, and the network charges are the ones that vary by location.
1. Distribution Network Operator (DNO) Charges
Great Britain is divided into 14 DNO regions, run by six network operators. Each DNO owns and maintains the local network - the cables and substations that deliver power to your premises - and sets its own distribution charges every year, within Ofgem’s price controls (opens in new tab).
Those charges differ a lot from one region to the next, both in the fixed daily charge and in the peak-time unit rates (see standing charges by region below). Every DNO publishes its charges in an annual charging statement, so they’re not secret - but they’re hard to compare, which is why suppliers’ quotes are the practical way to see what they mean for you.
2. Transmission Network Use of System (TNUoS)
TNUoS charges cover the high-voltage national transmission network, which moves electricity from power stations to local networks. They’re set by the national system operator, NESO, and they vary by location as well as by the size of your site.
3. How Suppliers Price It: Grid Supply Point Groups
The transmission network connects to local networks at Grid Supply Points, and Great Britain’s 14 network areas are also its 14 GSP groups, which the industry uses for settlement. Suppliers price by GSP group, which is why the same supplier quotes different rates for identical usage in different postcodes. They’re not being arbitrary - they’re reflecting different network costs.
How granular does this get? In our experience, the price books suppliers send to intermediaries carry separate prices for every GSP group combined with different meter types and time-of-day rates - often thousands of rows. Regional pricing isn’t an approximation; it’s built into every quote.
How Do Standing Charges Vary by Region?
Standing charges vary by region too, because the network part of them is set region by region. Here is the fixed daily distribution charge on the standard business tariff (“Non-Domestic Aggregated or CT”) for 2026/27 in all 14 regions, from each network operator’s own charging statement, ranked by the charge for the smallest sites:
| Region | Network operator | Band 1 (smallest sites) | Band 4 (largest sites) | Source |
|---|---|---|---|---|
| London | UK Power Networks | 0p | 0p | statement (opens in new tab) |
| North West | Electricity North West | 0p | 0p | statement (opens in new tab) |
| East of England | UK Power Networks | 9.65p | 13.03p | statement (opens in new tab) |
| South East | UK Power Networks | 10.04p | 22.20p | statement (opens in new tab) |
| East Midlands | National Grid | 12.60p | 35.01p | statement (opens in new tab) |
| Southern | SSEN | 13.57p | 0p | statement (opens in new tab) |
| North East | Northern Powergrid | 16.73p | 46.58p | statement (opens in new tab) |
| West Midlands | National Grid | 17.37p | 80.45p | statement (opens in new tab) |
| Yorkshire | Northern Powergrid | 17.83p | 95.09p | statement (opens in new tab) |
| South West | National Grid | 18.02p | 29.69p | statement (opens in new tab) |
| South Wales | National Grid | 18.14p | 58.04p | statement (opens in new tab) |
| South Scotland | SP Energy Networks | 21.00p | 168.99p | statement (opens in new tab) |
| North Scotland | SSEN | 25.24p | 0p | statement (opens in new tab) |
| Merseyside and North Wales | SP Energy Networks | 26.74p | 270.24p | statement (opens in new tab) |
Fixed charge in pence per meter per day, effective 1 April 2026. Business sites are placed in one of four charging bands; most regions charge more as the band rises, but SSEN’s two regions (Southern and North Scotland) charge less, falling to 0p in bands 3 and 4. These are network charges - one input into your supplier’s standing charge, not the standing charge itself.
The spread is wide. A small site pays no fixed distribution charge at all in London or the North West, but 21p to 27p a day in South Scotland, North Scotland or Merseyside and North Wales - and the largest sites in Merseyside and North Wales pay 270.24p a day. Every region also has a weekday peak (“red”) time band with higher unit rates: in the 13 statements where we could read it, it falls between 4pm and 7:30pm, and London adds a second red band from 11am to 2pm.
A 0p fixed charge doesn’t mean cheap electricity: London and the North West recover that money through peak-time unit rates instead. And suppliers’ own standing charges still differ by region - npower’s default standing charge runs from 190.98p a day in London to 227.20p in Merseyside and North Wales (table above).
Unlike households, businesses have no price cap on standing charges: Ofgem lists having “a business energy contract” among the cases where you are not protected by the cap. We cover the detail in our business electricity standing charges guide.
Note on billing: Some suppliers bundle network charges into a single “standing charge” line on your bill; others list them separately. A supplier showing a “low standing charge” may simply be listing network charges elsewhere on the invoice, so always compare total fixed daily costs.
For low-usage businesses - small offices, part-time premises, seasonal operations - standing charges make up a bigger share of the bill, so the regional difference in fixed charges matters more.
What Stands Out
London Is the Cheapest Region on Both Price Lists
Despite being the UK’s highest-cost city for almost everything else, London has the lowest default unit rate on npower’s list (47.22p) and the lowest deemed rate on EDF’s (55.21p), and npower’s lowest regional standing charge (190.98p a day). Its network operator charges a 0p fixed distribution charge on the standard business tariff, recovering its costs through peak-time rates instead.
Running a business in London? See how to switch commercial energy in London, including what London’s default rates cost.
Merseyside, North Wales and North Scotland Cost the Most
EDF’s highest regional deemed rate is in North Wales and Merseyside (66.36p/kWh), and npower’s highest default rates are in North Scotland (52.49p), the South West (51.73p) and Merseyside and North Wales (51.17p). Merseyside and North Wales also has the highest fixed distribution charges of all 14 regions: 26.74p a day for the smallest sites and 270.24p for the largest.
Scotland Is Split
North Scotland and South Scotland are separate network regions with separate prices: npower’s default rate is 52.49p in North Scotland against 48.60p in South Scotland, and EDF’s deemed rate is 61.80p against 59.01p.
The Real-World Impact
Ofgem’s 2025 research found that 70% of businesses were keeping up with their energy bills without difficulty, while 27% reported struggling in some way, and that financial strain was more commonly reported among sole traders, microbusinesses and sectors such as hotels and catering (Ofgem (opens in new tab)). Those are the businesses paying the highest prices per kWh.
What’s Changing
Network Costs Are Rising
In March 2026, Ofgem said network costs were increasing from April “to upgrade energy infrastructure”, and that “wholesale energy costs are volatile and will continue to be affected by the situation in the Middle East” (Ofgem (opens in new tab)).
The investment behind that is large. From Ofgem’s State of the Market infrastructure report (opens in new tab) (January 2026):
- Transmission investment could reach £70bn over the five years of the RIIO-3 price control, against £26bn in RIIO-2.
- Wind and solar generated 34% of electricity in 2024, up from 1% in 2004 - and new generation has expanded ahead of the network reinforcement needed to carry it.
- Consumer network costs have risen from £239 to £339 over the past five years, driven by inflation and rising investment.
Network charges are set region by region and reset every April, so these costs reach businesses unevenly - and on a pass-through contract, they can reach you mid-contract.
Wholesale Is Less Than Half Your Electricity Bill
Ofgem says wholesale costs are typically “about 40% of your electricity bill and about 60% of your gas bill” for a business, though exact percentages vary (Ofgem (opens in new tab)). The rest is network, policy and supplier costs - which is why a fall in wholesale prices doesn’t bring your bill down proportionally, and why regional network charges keep a floor under it.
UK prices are high by European standards too: Ofgem’s January 2026 report says GB electricity prices were 92% above the EU median for medium-sized businesses (Ofgem (opens in new tab)).
Market-Wide Half-Hourly Settlement (MHHS)
MHHS is moving every electricity meter onto settlement using half-hourly data; it began in September 2025 and Elexon, which runs it, expects it to complete in May 2027. About 2 million non-domestic meters - 64% - are already smart or advanced (Ofgem (opens in new tab)). For businesses, it means:
- Risk: Using power at peak times, when network charges are highest, can cost more
- Opportunity: Businesses that can shift consumption to cheaper periods can partly offset regional premiums
What Can You Actually Do?
Network charges are set by the network operators, not negotiated. But that doesn’t mean you’re stuck.
1. Know Your Region
Check which of the 14 network regions your business is in - your bill, your supplier or your network operator’s postcode checker can tell you. It explains why quotes differ, and which supplier default rate applies to you. Quicker still, upload your latest bill to Meet George’s free bill check: it reads your network region from your MPAN, alongside your unit rate, standing charge and contract end date.
2. Check Whether Network Charges Are Fixed
“Fixed price” doesn’t always mean fixed total cost. Ofgem says fixed-rate contracts “fix the price of unit rates and standing charges for the length of the contract”, but some business contracts pass network or regulatory cost changes through. Check your contract for wording about:
- Network charge pass-through
- TNUoS or DUoS adjustments
- Regulatory cost changes
If it has them, your “fixed” price can still rise when network charges reset each April.
3. Use Your Region’s Default Rate as a Ceiling
Don’t benchmark a quote against a national average - compare it with other quotes for your region, and with what your supplier would charge if you did nothing. The default and deemed rates in the table above are that ceiling: a negotiated contract should come in well below it.
4. Compare Short and Long-Term Options
Ofgem said in March 2026 that contract lengths “are starting to return to 3 to 5 years”, and its advice is to “consider both short and long-term options” (Ofgem (opens in new tab)):
- Longer contracts fix your price for longer, but also keep you there if prices fall
- Shorter contracts bring you back to the market sooner, for better or worse
- Pass-through terms decide whether next April’s network charges reach you mid-contract
5. Multi-Site Strategy for Larger Businesses
If you operate across several regions, a single blended rate can hide the fact that you’re overpaying in some of them. Consider:
- Analysing costs by site and region
- Asking for region-specific prices where your volumes justify it
- Identifying which sites have the most room for improvement
The Bottom Line
Regional pricing isn’t going away. Network charges are set region by region and reset every year, and transmission investment is rising.
The businesses that manage it well:
- Understand which charges are regional and which they can compare
- Compare quotes for their own region, on total annual cost
- Check contracts for network pass-through
- Time renewals, weighing short and long-term options
The gap between London and North Wales isn’t a market inefficiency you can arbitrage away - it’s how the network is paid for. But knowing it exists, and comparing against your own region rather than a national average, puts you ahead of most businesses.
Sources:
- npower Business Solutions - Default electricity charges from 1 October 2026 (opens in new tab)
- EDF - Deemed electricity prices from 17 August 2026 (opens in new tab)
- DESNZ - Gas and electricity prices in the non-domestic sector (opens in new tab)
- Ofgem - State of the Market Report (Retail), January 2026 (opens in new tab)
- Ofgem - State of the Market Report (Infrastructure), January 2026 (opens in new tab)
- Ofgem - Managing business energy costs in an uncertain market, March 2026 (opens in new tab)
- Ofgem - Businesses’ experiences of the energy market 2025 (opens in new tab)
- Network operators’ 2026/27 charging statements for all 14 regions (linked in the standing charges table): UK Power Networks, National Grid Electricity Distribution, Northern Powergrid, SSEN, SP Energy Networks and Electricity North West
