Business Energy Prices UK 2026: Electricity & Gas Rates Quick Answer
The latest official UK government data shows that the average non-domestic energy price across all business size bands was 24.3p per kWh for electricity and 5.3p per kWh for gas in 2025, including the Climate Change Levy (CCL).
These are market benchmarks rather than prices every business should expect to be quoted in 2026.
Your actual business energy price can be higher or lower depending on:
annual consumption
business location
meter type
electricity or gas usage profile
contract length and structure
when the contract is agreed
supplier
credit and payment terms
standing charges and other applicable costs
There is no domestic-style Ofgem energy price cap protecting standard business energy contracts. Businesses therefore need to compare the actual contracts available to them.
Compare current business energy quotes →
Free comparison • No obligation • Compare UK business electricity & gas
Key Takeaways
The latest official government benchmark across all non-domestic size bands was 24.3p/kWh for electricity and 5.3p/kWh for gas in 2025 , including CCL.
These figures are historic market averages, not live 2026 quotations .
There is no single UK business energy rate because contracts are priced individually.
Business energy contracts are not protected by the domestic Ofgem energy price cap.
Your unit rate is only part of your energy cost; standing charges and other applicable costs also matter.
Higher consumption makes small differences in pence per kWh increasingly important.
Fixed contracts generally provide greater price certainty, while variable prices can rise or fall.
Deemed and out-of-contract rates are usually more expensive than negotiated fixed-term contracts.
Don’t compare quotations using the unit rate alone. Compare the estimated total annual cost at the same consumption.
The most reliable way to establish today’s price for your business is to obtain quotations using your actual meter and consumption information.
Contents
How Do We Work?
Our comparisons are researched and reviewed by the Compare Your Business Costs editorial team using provider information, official UK guidance and business buying criteria. See how Compare Your Business Costs works.
Business energy prices can change quickly. Individual quotations depend on consumption, meter type, location, supplier, credit, contract structure and prevailing market conditions.
Authored by: Ally Cox – Business Technology & B2B Services Specialist, 10+ years’ experience.
Last updated: September 2026
What Are UK Business Energy Prices in 2026? There isn’t one standard UK business electricity or gas price.
The Department for Energy Security and Net Zero (DESNZ) publishes official non-domestic energy price statistics covering businesses of different consumption sizes.
The latest annual figures available show:
Energy 2025 Average Non-Domestic Price
Electricity
24.3p/kWh
Gas
5.3p/kWh
Source: Department for Energy Security and Net Zero industrial energy price statistics. Figures are provisional 2025 averages across all non-domestic consumption size bands in nominal terms and include the Climate Change Levy.
For context, the equivalent official averages were:
Year Electricity Gas
2022
20.9p/kWh
5.3p/kWh
2023
27.2p/kWh
6.4p/kWh
2024
26.3p/kWh
5.7p/kWh
2025 provisional
24.3p/kWh 5.3p/kWh
This shows that average non-domestic prices eased from their 2023 levels, but remained materially above some pre-energy-crisis levels.
Important: These Aren’t Live 2026 Quote Prices Official statistics are extremely useful for understanding the market but they should not be presented as “This is what your business will pay today.”
A quotation agreed in September 2026 reflects current supplier pricing and your individual business circumstances.
Our view: use government averages as a benchmark . Use actual quotations to make a buying decision.
See what business energy could cost your company →
Business Electricity Prices UK Business electricity is priced primarily in pence per kilowatt-hour (p/kWh), alongside a daily standing charge and other applicable costs.
For example, if a business consumes 40,000 kWh × 24p/kWh = £9,600
That is the consumption element of the bill before standing charges and other applicable costs.
Why Do Business Electricity Prices Vary? Two businesses can receive different electricity quotations because suppliers consider factors including:
annual electricity consumption
location
metering arrangements
usage profile
contract start date
contract length
wholesale market conditions
credit and payment arrangements
This is why generic “business electricity prices from Xp/kWh” should be treated cautiously unless the provider clearly explains who qualifies for that rate.
Business Gas Prices UK Business gas is also normally quoted in pence per kWh, with a standing charge and potentially other applicable costs.
Using the latest annual government benchmark 100,000 kWh × 5.3p/kWh = £5,300
Again, this is a simplified usage-cost example based on the historic 2025 market average, rather than a current quotation.
Gas pricing can vary significantly between a small office using gas mainly for heating and an energy-intensive business consuming much larger quantities.
Business Energy Prices by Business Size You will often see websites publishing tables such as:
There is some logic behind this because official non-domestic statistics show prices by consumption band.
However, business size isn’t itself your tariff.
A small business with high electricity consumption could have a very different energy profile from another company with the same number of employees.
Consumption Matters More Than the Label
When requesting quotations, have your actual annual consumption available.
For electricity and gas, look for annual kWh usage on your bills or request it from your supplier.
You might also need your:
MPAN or MPRN meter information
current supplier
contract end date
business postcode
See our Small Business Energy Deals guide for SME-specific information.
Business Energy Standing Charges The unit rate isn’t the only number on a business energy quotation.
A standing charge is a fixed daily charge associated with maintaining your energy supply and related supplier/network costs.
Suppose two electricity tariffs offer:
Tariff A Tariff B
Unit rate
23p/kWh
24p/kWh
Standing charge
£2.00/day
£0.50/day
Tariff A has the cheaper unit rate.
But that does not automatically make it the cheaper tariff.
At lower annual consumption, Tariff B’s substantially lower standing charge could outweigh its higher unit rate.
At higher consumption, Tariff A’s lower unit rate becomes increasingly valuable.
This is why we recommend comparing the estimated annual cost rather than sorting quotes by p/kWh.
Example Business Energy Bills The following examples show how consumption affects annual energy costs.
They are mathematical illustrations using the latest 2025 official non-domestic average prices of 24.3p/kWh electricity and 5.3p/kWh gas .
They are not 2026 quotations and exclude standing charges and other applicable costs.
Example Electricity Usage Costs
Annual Electricity Usage At 24.3p/kWh
10,000 kWh
£2,430
25,000 kWh
£6,075
50,000 kWh
£12,150
100,000 kWh
£24,300
500,000 kWh
£121,500
Example Gas Usage Costs
Annual Gas Usage At 5.3p/kWh
10,000 kWh
£530
25,000 kWh
£1,325
50,000 kWh
£2,650
100,000 kWh
£5,300
500,000 kWh
£26,500
Why Small Rate Differences Matter For a business consuming 100,000 kWh 1p/kWh difference = £1,000 per year.
At 500,000 kWh 1p/kWh difference = £5,000 per year.
That’s why higher-consumption businesses should pay particularly close attention to apparently small differences in unit rates.
Are Business Energy Prices Capped? No. Standard non-domestic business energy contracts aren’t protected by the Ofgem domestic energy price cap.
The Ofgem price cap applies to eligible domestic customers on standard variable/default tariffs, not ordinary business energy contracts.
This is an important distinction because domestic energy prices are frequently reported in the news using:
Ofgem price cap figures
typical household annual bills
domestic electricity unit rates
domestic gas unit rates
These shouldn’t be used as business energy price benchmarks.
Business contracts operate differently and are individually agreed.
See our Energy Price Cap Guide for more information.
What Affects Business Energy Prices? 1. Wholesale Energy Prices
Suppliers purchase electricity and gas in wholesale markets.
Ofgem says wholesale costs can typically represent around 40% of a business electricity bill and around 60% of a business gas bill , although the actual proportions vary.
Wholesale prices therefore matter, but they aren’t the whole bill.
2. Annual Consumption
How much electricity or gas you use affects the commercial quotations available as higher consumption also means small differences in unit rates have a larger financial impact.
3. Location
Network costs vary geographically, meaning otherwise similar businesses in different parts of Britain can receive different prices.
4. Contract Timing
The wholesale market moves continually, two otherwise identical businesses agreeing contracts months apart can therefore secure different rates.
5. Contract Type
Fixed and variable contracts allocate price risk differently.
6. Contract Length
A longer contract isn’t automatically cheaper.
The price reflects the market conditions and supplier’s pricing when the agreement is made so choose the length based on the combination of price, certainty and commitment that suits the business.
7. Meter & Usage Profile
Larger and more complex electricity supplies can be priced partly around when energy is consumed, not simply total annual kWh.
8. Supplier & Commercial Terms
Different suppliers have different pricing strategies, eligibility criteria and appetite for particular customer types.
9. Broker or Intermediary Costs
If you use an energy broker , understand how it is paid and account for the remuneration when evaluating the contract.
What Makes Up a Business Energy Bill? The price businesses pay isn’t simply the wholesale price of electricity or gas, and it can incorporate:
Cost What It Covers
Wholesale energy
Cost of buying electricity or gas
Network costs
Transporting energy through electricity networks and gas infrastructure
Policy/environmental costs
Applicable government energy and decarbonisation schemes
Supplier costs
Metering, billing, customer service and other operational costs
Supplier margin
Commercial margin incorporated by the supplier
Standing charge
Fixed daily charge associated with the supply
Taxes/levies
Applicable charges such as CCL and VAT depending on the supply
This helps explain why: wholesale electricity price ≠ the unit rate on your business electricity bill.
Fixed vs Variable Business Energy Prices Ofgem identifies both fixed and variable business energy contracts.
Fixed Variable
Unit price
Generally fixed for the contract term
Can increase or decrease
Budget certainty
Greater
Lower
Exposure to market movements
Reduced for fixed elements
Greater
If market prices fall
You normally continue paying the agreed rate
Your price may fall depending on the tariff
If market prices rise
Your agreed unit rate generally remains fixed
Your price may increase
Important: Ofgem notes that some contracts described as fixed can contain conditions allowing certain rates or charges to change, so always read the contract terms.
Which Is Cheaper? Neither contract type is inherently cheaper.
A fixed contract is primarily about price certainty , not a guarantee that you’ve secured the lowest future price.
See our Fixed vs Variable Business Energy Guide .
Out-of-Contract & Deemed Business Energy Rates If your business isn’t on a negotiated contract, your energy could cost more.
Ofgem says both deemed and out-of-contract rates are usually more expensive than negotiated fixed-term contracts.
Out-of-Contract Rate This can apply when your fixed contract ends and the previous contract specifies what rate or arrangement applies afterwards.
Read our Business Energy Out-of-Contract Rates Guide .
Deemed Rate A deemed contract commonly applies when you move into business premises and consume energy before agreeing a contract.
Read our Deemed Business Energy Rates Guide .
Why Check? Before spending hours comparing small differences between fixed tariffs, establish whether you’re currently paying a potentially more expensive non-negotiated rate.
That can be the bigger pricing problem to solve first.
How to Compare Business Energy Prices Properly Don’t simply put three unit rates next to each other.
Use this process.
Step 1: Find Your Annual Consumption
Use actual annual kWh wherever possible.
Step 2: Compare the Same Consumption
Every quote should be assessed using the same annual usage assumption.
Step 3: Record the Unit Rate
For example 24.2p/kWh
Step 4: Record the Standing Charge
For example 85p/day
Step 5: Calculate the Estimated Annual Cost
A simplified starting calculation is:
(annual kWh × unit rate) + (daily standing charge × 365)
Then account for applicable taxes, levies and other contract-specific charges.
Step 6: Compare Contract Terms
Check:
contract length
fixed or variable pricing
termination provisions
renewal arrangements
broker/intermediary costs where relevant
Step 7: Compare the Total Commercial Offer
The cheapest-looking unit rate isn’t automatically the best-value contract.
See our Business Energy Tariff Optimisation Guide for a more detailed comparison process.
Compare business energy quotes →
How Can Businesses Reduce Energy Costs? There are two broad approaches.
1. Reduce the Price You Pay
You can:
compare suppliers
negotiate with your existing supplier
review your contract before expiry
avoid unnecessarily remaining on deemed or out-of-contract rates
compare standing charges as well as unit rates
review broker/intermediary costs
2. Reduce the Energy You Use
You can also investigate:
lighting
heating and cooling
machinery
refrigeration
building efficiency
energy monitoring
flexible consumption
See our Commercial Energy Efficiency Strategies guide.
Our view: businesses should consider both. A competitive tariff doesn’t compensate for unnecessary consumption, while efficient premises can still overpay if they’re on a poor contract.
Our View: How to Judge Business Energy Prices in 2026 The biggest mistake with business energy pricing is looking for a single number that tells you whether a quote is “cheap”.
There isn’t one.
We would judge a business energy price in this order:
Consumption → unit rate → standing charge → annual cost → contract length → price certainty → terms → supplier.
1. Use Official Data as a Benchmark
Government statistics tell you what businesses have been paying across the market.
They’re useful context.
They’re not a substitute for today’s quotation.
2. Use Your Consumption to Judge the Price
A difference of 1p/kWh means very little without knowing whether the business consumes 5,000 or 500,000 kWh.
3. Compare Annual Cost
This prevents an attractive unit rate disguising a high standing charge.
4. Don’t Compare Business Rates With the Domestic Price Cap
They’re different markets and different contract structures.
5. Check Your Existing Contract Status
If you’re on deemed or out-of-contract rates, resolving that may be more important than trying to shave a tiny amount from an already competitive fixed tariff.
6. Don’t Assume Switching Is Automatically Cheaper
Ofgem specifically advises businesses to compare offers because the best option may still be with the existing supplier.
The Question to Ask Rather than:
“What is the average business electricity price?”
Ask:
“At our annual consumption, what would this contract actually cost us over the next year and over the full term?”
That’s the number you can make a commercial decision with.
Business Energy Prices UK FAQs What is the average business electricity price in the UK?
The latest official annual data shows an average non-domestic electricity price of 24.3p/kWh in 2025 across all consumption size bands, including CCL. This is a historic market benchmark rather than a current 2026 quotation.
What is the average business gas price in the UK?
The latest official annual data shows an average non-domestic gas price of 5.3p/kWh in 2025 across all consumption size bands, including CCL.
What are business energy prices in 2026?
There isn’t one standard 2026 business energy price. Current quotations depend on consumption, location, meter, contract structure, supplier and market conditions. Compare live quotations for your business rather than treating an historic average as today’s rate.
Are business energy prices capped?
No. Standard business energy contracts aren’t protected by Ofgem’s domestic energy price cap.
Why are business energy prices different from domestic prices?
Business energy is supplied under non-domestic contracts with different pricing, taxation, contract and consumption arrangements. Domestic price-cap rates therefore shouldn’t be used as direct business benchmarks.
Is business electricity more expensive than gas?
On a per-kWh basis, electricity is generally substantially more expensive than gas. However, total expenditure depends on how much of each fuel your business uses.
Do bigger businesses get cheaper energy?
Larger consumption can affect supplier pricing, but there is no guarantee that a larger company automatically receives the cheapest tariff. Metering, usage profile, contract timing and other commercial factors also matter.
Is a longer business energy contract cheaper?
Not necessarily. Longer contracts provide a longer period of commitment and can provide greater price certainty where rates are fixed, but they aren’t automatically cheaper.
What is a good business electricity rate?
A good rate is one that compares favourably with the alternatives available for your specific consumption and requirements. Compare the total expected cost and terms rather than judging the unit rate in isolation.
What is a business energy standing charge?
It is a daily fixed charge associated with maintaining and supplying the energy connection. The amount varies between contracts and should be included when comparing quotations.
Can I switch business energy supplier?
Yes, subject to your contract. Fixed contracts normally have a switching window near the end of the term. Businesses on variable, deemed or out-of-contract arrangements can generally switch at any time, although suppliers can sometimes object to a switch, for example where money is owed.
How can I find cheaper business energy?
Compare quotations from your existing supplier and alternatives using the same annual consumption. Compare unit rates, standing charges, total expected cost and contract terms.
Are out-of-contract business energy rates expensive?
Ofgem says out-of-contract rates are usually more expensive than fixed-term negotiated contracts. If your contract has expired, check your current status and available alternatives.
Compare Business Energy Prices The figures on this page help you understand the UK market.
To find out what your business could actually pay, compare quotations using your own details.
Have the following available where possible:
recent energy bill
annual electricity and/or gas consumption
business postcode
current supplier
MPAN/MPRN
contract end date
Compare tailored business energy quotes →
Free comparison • No obligation • Compare UK business gas & electricity
Prices & Comparison Contracts & Switching Energy Market & Procurement Reduce Energy Costs Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
