Average commercial electricity and gas bills

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*At least 10% of businesses who switched energy supplier for both gas & electricity with us between August 2017 and August 2018 saved £1,027 or more.

Running your own business means juggling important tasks on a daily basis. We’re willing to bet that delving into the contents of your company’s energy bill isn’t high on your list of priorities.

But blindly paying your bill each month without taking a good look at what’s inside could be leaving your business short-changed. Make sure your business is getting the best possible deal for its energy by getting to know your electricity and gas bills.

What’s the average rate your business should pay for energy?

Business consumers are offered bespoke energy quotes to reflect their unique circumstances which means that energy prices vary from company to company. There are several different charges that go into your bill, but it’s the unit cost and the standing charge that make the most difference to the amount you pay.

  • The unit cost is what your business is charged for each kWh of energy that it uses.
  • The standing charge is a daily amount that covers the cost of transporting energy to your premises and maintaining the national grid.

Energy suppliers will take the location of your business, its size, the number of employees, its energy usage pattern and its energy efficiency into consideration when calculating your company’s unit cost and standing charge. This makes it hard to estimate how much your business can expect to pay without first assessing its individual situation. Nevertheless, you can get a rough idea by taking a look at average prices:

Average business gas use

Business size Low end usage (kWh) High end usage (kWh)
Micro business 5,000 15,000
Small business 15,000 30,000
Medium business 30,000 65,000

Average business gas rates per kWh

Business Size Annual usage Price per kWh Standing charge Avg. annual cost
Micro business 5,000 - 15,000 4.0p 32.0p £516
Small business 15,000 - 30,000 3.8p 30.0p £965
Medium business 30,000 - 65,000 3.5p 28.0p £1,502

Average business electricity use

Business size Low end usage (kWh) High end usage (kWh)
Micro business 5,000 15,000
Small business 15,000 30,000
Medium business 30,000 50,000

Average business electricity rates per kWh

Business Size Average annual usage (kWh) Average price (per kWh) Standing charge (daily) Average annual price
Micro business 5,000 - 15,000 kWh 13.2p - 14.5p 23p - 27p £650 - £1,800
Small business 15,000 - 30,000 kWh 12.4p - 14.1p 23p - 27p £1,900 - £2,900
Medium-sized business 30,000 - 50,000 kWh 12.2p - 13.3p 23p - 27p £3,300 - £5000

The figures above are based on industry averages and are only intended as a guide. There are many factors that impact the amount you pay for your business energy, including consumption habits and the location of your business premises.

How to read your business energy bill

Bills from different suppliers may vary in structure, but they’ll contain the same information in one order or another:

  • Bill date, bill number and VAT number: the date the bill was issued, the number of the bill and your business’s VAT number
  • Account number: a unique number that your supplier uses to identify you
  • Contract details: an outline of the contract your business is currently on
  • Billing period: the period of energy usage being charged for
  • Type of charges: whether your charges are based on accurate or estimated readings
  • Outstanding charges: if you owe anything from previous bills, you’ll see the figure here
  • Charges for the billing period: the costs you’ve incurred during the present billing period
  • VAT charges: the VAT that you’re due to pay on this bill
  • Total amount due: the full amount you need to pay, including this month’s costs, any outstanding amounts, and VAT
  • MPAN/MPRN number: unique reference numbers your supplier uses to identify your property and meters
  • Breakdown of charges: exactly what you’re being charged for in this bill

How to get the best business energy prices

To get a good idea of what’s available on the market, you’ll need to call a range of different suppliers and negotiate a tailor-made energy quote from each. You’ll then need to compare the unit cost and standing charges to find the most competitive offer. While saving money will be your most pressing concern, price isn’t everything. To avoid running into problems with your supply, it’s also important to get a supplier that offers great customer service.

How to lower your business energy bills

It’s no surprise that the more energy your business uses, the bigger your bill will be. To lower your company’s energy bills, your first step should be to reduce your consumption. The gov.uk energy efficiency guide has a wealth of information on how to do this, with tips on energy efficient equipment, making small modifications to your premises and motivating staff to get involved.

Reducing your energy consumption will help you save money, but switching to a better energy deal could save you a whole lot more. To find out how much you could save, call UK Power on 0800 326 5517 today and speak to our energy experts about running an energy price comparison.

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