What is the average energy consumption for different UK businesses?

Although most businesses use between 15,000 and 25,000 kWh of energy a year, the average usage and cost of energy will differ depending on the size of the business, industry and how it uses energy.

In short, the larger the business, the more energy it’s likely to use.

Energy prices have been unusually volatile all year, which means rates can vary quite significantly. For a closer look at why energy prices are currently so volatile, check out our guide - what's going on with energy prices? 

Now let's back to looking into how much energy your business uses, the rates you can expect to pay, and some ways to cut costs. 

How much energy does an average business use?

All businesses have different energy demands - even if two businesses seem identical on the face of things, they’ll operate from different premises, which will have different heating, lighting and energy efficiency systems in place, all of which can affect the amount of energy they use.

Even just having different opening times and employees with different energy usage habits can all have an impact on energy usage.

Energy usage is measured in kilowatt-hours (kWh) and to give you an idea of how much energy a business like yours should be using, below shows general usage for small business and medium businesses.

• Microbusinesses use an average of 10,000 kWh of gas and up to 15,000 kWh of electricity a year
• Small businesses use an average of 25,000 kWh of gas and up to 25,000 kWh of electricity a year
• Medium-sized businesses use an average of 45,000 kWh of gas and up to 50,000 kWh of electricity a year
• Large businesses use more than 65,000 kWh of gas and more than 50,000kWh of electricity a year

What makes up an average commercial energy bill?

Your energy bills will vary depending on how much gas and electricity you use at your business premises.

The cost of your bills will also be affected by the type of tariff you're on, and although your business energy bill is made up of a number of costs, including VAT and government levies, there are two figures you need to look out for:

• Unit cost - Measured in kilowatt-hours (kWh), this is the amount you pay for each unit of gas or electricity you use.
• Standing charge - This is a flat daily rate to cover the cost of getting the energy to your property and is charged regardless of whether or not you use any gas or electricity.

If you’re looking to cut the cost of your bills, you’ll want a tariff that offers a lower unit rate and lower standing charge than the one you’re currently on, but you might be able to lower your bills by cutting the cost of just one of these charges.

The type of deal you’re on will also affect the cost of your business energy bills, and while there are a range of commercial tariffs on offer, simply choosing between a fixed rate and variable rate tariff can make a significant difference.

If you're on a variable-rate energy deal, the unit cost will fluctuate depending upon the current market cost of energy - if prices go up, so do your energy bills, even if you consistently use the same amount of gas and electricity each month.

If you sign up for a fixed-rate deal, this means the unit rate is fixed and you’ll pay a flat rate for each unit of energy you use. Fixed-rate deals offer an effective way to protect against price hikes if energy rates increase, and can also make budgeting a bit easier, but your bills will still fluctuate according to your usage.

What are the average commercial gas prices per kWh?

When looking to get a grip on your energy bills, it can also help to know the average business gas prices per kWh. Below are the latest rates:

How much should different size businesses be paying?

The size of your business will affect how much energy you use. The table below shows an estimate of how much energy you could be using and an estimate of how much you could pay annually for each business size. 

What are the average commercial electricity prices per kWh?

When working out your electricity costs it can also help to know the average business electricity prices per kWh. Below are the latest rates:

How much should your business type be paying for electric?

The size of your business will affect how much electricity you use. The table below shows an estimate of how much you could be using and how much you could pay annually based on business size. 

What are the average business electricity rates by business type?

If you’ve never switched business electricity, you’ll not be on your supplier’s most competitive rates and will definitely be overpaying for energy. If you’re in this position, it can help to compare the rates you’re currently paying with the average rates paid by other businesses in your sector.

If, for instance, you run a restaurant, asking how much energy an average restaurant uses every year and comparing the costs with the rates you pay will instantly highlight how much you could save by switching suppliers.

Please note that the above rates are pre-energy crisis and pre-Ukraine conflict. Prices are currently so volatile that it's impossible to quote average prices.

What businesses use a lot of energy?

The type of industry you work in and the way your business uses energy will determine the amount of energy it uses each year. And when it comes to heating business premises, the energy efficiency of the building will also play a part. 

Here is a breakdown of the UK’s top 10 biggest business energy consumers:

How to cut your business energy usage

Managing and improving the energy efficiency of your business will help to reduce the amount of energy consumed. There are any number of ways to do this, such as:

• Carrying out an energy audit
• Using energy-efficient lighting
• Using energy-efficient computers
• Encouraging your staff to go green
• Installing energy generation technology

Although the effectiveness of any energy efficiency measures depends on the type of business you run and the steps you take, even making a few small changes can help to make a big difference.

How to reduce your business energy bills

Cutting the amount of gas and electricity you use is obviously the most effective way to cut your business energy bills, but arguably the quickest and simplest way best to lower your bills is to switch to a cheaper tariff. 

The tech-enabled energy experts at Bionic can find the right deal for your business in a matter of minutes and help you with the switch. To start your business energy comparison, let us know your postcode or give us a call on 0800 077 3701 and we’ll do the rest.

If you don’t arrange a new deal before your current one expires, your supplier will place you on its more expensive rates. The only way to make sure that you never pay more than you need to for energy is to stay on top of your renewal dates and switch at the right time. 

If this sounds like too much hassle, don’t worry - our Digital Renewal service can automatically take care of renewals so you never overpay for energy again.

We can also help you with a range of other business essentials, including business insurance, VoIP, phone and broadband.