What are Average Business Energy Bills?
Do you wonder what the average business energy bills are in the UK? You must choose the right plans and packages to keep energy bills lower when it comes to your business. Since energy bills for businesses can be substantial, to this end, finding the right plans and packages is crucial. Fortunately, our team is on hand today to help you find out more about optimising your business’s energy bills and making the most of your money.
Understanding Business Energy Bills
Before looking any further, it’s worth starting by considering what business energy bills are and what these entail. Business energy bills are often a significant expense for many businesses, making them essential points to consider.
Because energy is cheap on a per kWh basis, it’s easy for businesses to overlook their energy bills. However, energy bills for businesses can add up over the year, with most businesses using thousands of kWh per year in energy. In this instance, the low cost of energy is offset by the substantial total use, making energy bills more expensive than you might expect.
Factors Affecting the Cost of Business Energy Bills
Numerous factors can affect the cost of a business’s energy bills. Notably, we should consider a few key points:
- The total consumption of the business will have the most significant impact on the business’s final energy bills for gas or electricity. Different business models will have different energy requirements.
- Every business’s efficiency also differs. Two businesses with similar products may have very different energy costs relating to different efficiencies. For example, if one business had technology that was twice as energy efficient, their energy costs would be half that of a competitor with half as efficient equipment.
- Another critical factor to consider is the price that the chosen business pays for its energy usage. Indeed, every energy provider is different, and this will play a significant role in determining the final cost of the business’s energy bills.
These are just a few factors that come into play when determining a business’s energy usage and energy bills. As such, if your business is looking to optimise its energy bills, you may also need to consider ways to improve efficiencies alongside choosing a more affordable energy plan for your business.
What is the Average Business Energy Bill?
Considering the costs of energy is crucial for every business, but the average business energy bill will naturally vary based on various factors. One of the most crucial influences in this regard is the size of the business; after all, there’s no point in comparing a micro business with a large-scale business, as their energy usage requirements and costs will likely be drastically different.
To determine the average business energy bill, we first need to consider the average energy use for most businesses. Without this information, there is little context for the size of the bill.
Average Energy Usage for Businesses
Generally speaking, the high usage scores for one business model will be equivalent to the low usage score for the following business size group. For example, for microbusinesses, high-use gas and electrical usage typically fall at around 15,000 kWh annually; meanwhile, for low-use small businesses (the next size up for business models), average consumption will usually still fall at around 15,000 kWh annually.
So, what is the average energy usage for businesses, depending on their size?
Excluding the costs for large-scale businesses (as these tend to be outliers from most firms), the average business gas usage is 32,500kWh. This varies between 5,000 kWh for low-usage microbusinesses and 65,000 kWh for high-usage medium businesses. Meanwhile, the average usage falls at 27,500 kWh for electricity use, ranging between 5,000 kWh for low-usage microbusinesses and 50,000 kWh for high-usage medium businesses.
Average Business Energy Costs
Thus far, we have considered how much electricity and gas businesses use on average – however, we still need to consider the financial value of this usage. Again, this varies from business to business, but these can be summarised as follows:
- The average annual electricity cost across microbusinesses is approximately £1570
- The average annual electricity cost across small businesses is approximately £3010
- The average annual electricity cost across medium businesses is approximately £5500
- The average annual gas cost across microbusinesses is approximately £610
- The average annual gas cost across small businesses is approximately £1140
- The average annual gas cost across medium businesses is approximately £1850
Upon considering the above values, it’s clear that the cost of gas is much less than the cost of electricity. Nevertheless, both of these play an essential role in the final energy cost for businesses, which works out at roughly the following:
- The average annual energy cost for microbusinesses is approximately £2180
- The average annual energy cost for small businesses is approximately £4150
- The average annual energy cost for medium businesses is approximately £7350
Your business faces considerable costs associated with production, and one of these aspects is the cost of energy bills. While the cost of energy for every business will vary depending on different factors, such as the size of the business, the nature of its operations, whether it offers energy-intensive products and services, and the price of the chosen plan.
However, there are steps that you can take to reduce your business’s operating costs. Today, we have summarised what business energy bills cover, the average business energy bills overall, and some pointers for reducing your firm’s energy use and bills as a whole. If you would like to know more about average business gas and electricity prices, you can do so here.
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