Business electricity rates are dependant on a number of factors and conditions, which vary significantly around the globe. In this article, we list some of the cheapest and most expensive electricity rates in the world.
What influences the price of energy around the world?
The price of energy around the world depends on a range of different supply and demand conditions:
- geopolitical situation
- national energy mix
- import diversification
- network costs
- environmental protection costs
- severe weather conditions
- levels of excise and taxation
- access to energy sources
- local tariffs
- privatisation of resources
Where are the cheapest business electricity rates in the EU?
An article from Eurostat highlights the cheapest and the most expensive business electricity rates in the European Union (EU), along with price data from Iceland, Liechtenstein, Norway, Albania, North Macedonia, Montenegro, Serbia, Turkey, Bosnia and Herzegovina, Kosovo, Moldova, Ukraine and Georgia.
Firstly, some notes:
- Prices presented exclude refundable taxes and levies and VAT.
- The non-household consumers (businesses) are defined as medium-sized consumers with an annual consumption within the range of 500 MWh < consumption < 2 000 MWh).
- Figures are from the second half of 2019.
The cheapest business electricity rates in Europe (including non-recoverable tax):
- Kosovo (GBP 0.062 per kWh)
- Denmark (GBP 0.062 per kWh)
- Sweden (GBP 0.064 per kWh)
Europe’s cheapest household electricity (including tax) can be found in
- Kosovo (GBP 0.055 per kWh)
- Georgia (GBP 0.57 per kWh)
- Serbia (GBP 0.066 per kWh)
Where are the most expensive business electricity rates in Europe?
European states with the most expensive business electricity rates for in the second half of 2018:
- Cyprus (GBP 0.16 per kWh)
- Italy (GBP 0.15 per kWh)
- Germany (GBP 0.14 per kWh)
- United Kingdom (GBP 0.14 per kWh)
(In Germany, non-recoverable taxes and levies made up almost half of the total electricity price; the highest proportion in Europe).
EU member states with the most expensive electricity rates (including tax) for household consumers in the second half of 2018:
- Denmark (GBP 0.27 per kWh)
- Germany (GBP 0.26 per kWh)
- Belgium (GBP 0.26 per kWh)
Where are the cheapest electricity rates in the world?
As of March 2019, some of the top 10 countries with the lowest average prices of electricity were:
- Burma – (GBP 0.025 per kWh)
- Iran – (GBP 0.023 per kWh)
- Iraq – (GBP 0.023 per kWh)
- Qatar – (GBP 0.023 per kWh)
- Egypt – (GBP 0.023 per kWh)
- Kazakhstan – (GBP 0.031 per kWh)
- Zambia – (GBP 0.031 per kWh)
- Azerbaijan – (GBP 0.031 per kWh)
- Algeria – (GBP 0.031 per kWh)
- Trinidad & Tobago – (GBP 0.039 per kWh)
Where are the most expensive electricity rates in the world?
According to a 2018 article by World Atlas, tropical island nations top the list for the most expensive electricity rates in the world. According to data from 2018, Solomon Islands has the highest electricity cost in the world, followed by other tropical islands – Vanuatu, the US Virgin Islands, the Cook Islands, and Tonga.
With the highest overall electricity costs in Europe, Germany has developed a program for increasing the contribution of renewably-sourced electricity to upwards of 80% by 2050.
The top 10 countries with the most expensive electricity:
- Solomon Islands (GBP 0.77 per kWh)
- Vanuatu (GBP 0.47 per kWh)
- United States Virgin Islands (GBP 0.40 per kWh)
- Cook Islands (GBP 0.39 per kWh)
- Tonga (GBP 0.37 per kWh)
- Jamaica (GBP 0.35 per kWh)
- Niue (GBP 0.35 per kWh)
- Marshall Islands (GBP 0.32 per kWh)
- Tuvalu (GBP 0.29 per kWh)
- Germany (GBP 0.27 per kWh)
How to find the UK’s cheapest business electricity rates
Different energy suppliers in the UK offer different unit costs to business consumers. However, business electricity rates are not made up of unit cost alone – one also needs to take the standing charge and other third-party and industry charges into account.
The best way to find the cheapest electricity deal for your business is to use the services of an energy consultant like Smarter Business. The energy experts will compare the energy market for you to find you the best business electricity rates on the market.