Business Energy Prices UK 2026: Compare Gas & Electricity Quotes
Business energy prices in the UK vary by usage, meter type, location, contract timing, supplier, credit profile and whether you are on a fixed, variable, deemed or out-of-contract tariff.
As a general 2026 guide, many UK businesses will see quotes around:
| Business energy cost |
Typical guide range |
| Business electricity unit rate |
18p-32p+ per kWh |
| Business gas unit rate |
5p-11p+ per kWh |
| Electricity standing charge |
40p-£1.50+ per day |
| Gas standing charge |
30p-£1.20+ per day |
| Small business annual energy cost |
£1,500-£6,000+ |
| Medium business annual energy cost |
£6,000-£20,000+ |
| High-usage business annual energy cost |
£20,000+ |
These are guide figures only.
Your actual quote depends on:
- annual kWh usage
- meter type
- business location
- contract end date
- current tariff
- credit profile
- electricity and gas split
- half-hourly or non-half-hourly metering
- contract length
- market timing
- broker commission
- green tariff requirements
- VAT and Climate Change Levy treatment
The best way to compare business energy is to use your latest bill and compare unit rates, standing charges, contract length and total annual cost.
Compare Business Energy Quotes
Free quotes • No obligation • Compare UK business gas and electricity suppliers
Compare business energy quotes
Use this guide if you are comparing:
- business energy prices
- business electricity rates
- business gas prices
- business gas and electricity quotes
- business energy suppliers
- small business energy deals
- commercial energy contracts
- business energy switching
- business energy brokers
- fixed business energy tariffs
- variable business energy tariffs
- deemed energy rates
- out-of-contract business energy rates
- half-hourly meter contracts
- green business energy tariffs
- multi-site energy contracts
- business energy renewal quotes
Key Takeaways:
- Business energy is usually contract-based and priced individually for each business.
- Businesses are not protected by the domestic energy price cap.
- Energy quotes depend on usage, location, meter type, credit profile and market timing.
- Your total cost includes unit rates, standing charges, VAT, Climate Change Levy where applicable and any pass-through charges.
- Business energy contracts can last up to five years.
- There is usually no cooling-off period after agreeing a business energy contract.
- Deemed and out-of-contract rates can be more expensive than negotiated fixed contracts.
- Brokers can help compare suppliers, but commission or fees should be clear.
- You should compare quotes before your renewal window closes.
- The best quote is not always the lowest unit rate; check standing charges and total annual cost too.
Business Energy Bill Calculator UK
Estimate your monthly and annual business electricity and gas costs using your kWh usage, unit rates, standing charges and VAT.
Used to provide a recommendation after the calculation.
Out-of-contract rates can be much more expensive.
Most businesses should check their VAT treatment with their supplier or accountant.
Businesses often compare quotes before renewal.
Green tariffs may affect supplier choice and pricing.
Your estimated business energy bill
Monthly electricity cost
£0
Estimated monthly bill
£0
Average effective rate
0p/kWh
Potential monthly saving
£0
Enter your energy usage and rates to estimate your business energy bill.
Recommendation will appear here.
This calculator is an estimate only. Actual business energy bills vary by supplier, meter type, region, contract, usage, VAT treatment, standing charges, Climate Change Levy, pass-through charges and renewal terms.
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: August 2026
Contents
How Business Energy Pricing Actually Works
Business energy pricing is different from domestic energy.
Most business gas and electricity contracts are priced based on your business profile, and providers will consider:
- annual electricity usage
- annual gas usage
- meter type
- supply region
- business type
- credit risk
- payment history
- contract start date
- wholesale market conditions
- contract length
- whether you use a broker
- whether you need a green tariff
- whether you have half-hourly metering
- whether you have multiple sites
Your business energy bill usually includes:
| Cost component |
What it means |
| Unit rate |
The price you pay per kWh used |
| Standing charge |
A daily fixed charge for being connected |
| VAT |
Usually charged on business energy |
| Climate Change Levy |
Applies to many business energy bills |
| Pass-through charges |
Network, policy and third-party charges in some contracts |
| Metering charges |
May apply for some meter types |
| Broker commission |
May be included in quoted rates if using a broker |
| Exit fees |
May apply if leaving a contract early |
Business electricity prices UK 2026
Business electricity prices are usually shown as pence per kWh.
| Business size |
Typical annual electricity use |
Example guide unit rate |
Typical annual electricity cost guide |
| Micro business |
5,000 kWh |
18p-32p+ |
£1,000-£2,500+ |
| Small business |
15,000 kWh |
18p-32p+ |
£3,000-£6,000+ |
| Medium business |
30,000 kWh |
18p-32p+ |
£6,000-£12,000+ |
| Larger business |
50,000 kWh+ |
Quote-based |
£10,000-£20,000+ |
| High-usage site |
100,000 kWh+ |
Quote-based |
£20,000+ |
These examples exclude or simplify some costs such as VAT, Climate Change Levy, standing charges and pass-through charges.
Actual quotes vary by supplier, region, meter type, market timing and contract.
Business gas prices UK 2026
Business gas prices are usually lower per kWh than electricity, but gas-heavy businesses can still have significant annual bills.
| Business type |
Gas use level |
Typical gas cost consideration
|
| Small office |
Low |
|
| Retail shop |
Low to medium |
|
| Café |
Medium |
Cooking, hot water and heating
|
| Restaurant |
Medium to high |
Cooking, heating and hot water
|
| Hotel |
High |
Heating, hot water, laundry and kitchens
|
| Care home |
High |
Heating, hot water and 24/7 occupancy
|
| Manufacturer |
High |
Process heat and operational use
|
Business gas quotes should be compared using your annual kWh usage and meter details, not just rough monthly bills.
Business energy costs by sector
| Business type |
Energy cost drivers |
|
| Office |
Lighting, IT, HVAC, staff kitchens |
Unit rate, standing charge and contract length
|
| Retail shop |
Lighting, tills, refrigeration, heating |
Electricity rate and usage pattern
|
| Café |
Cooking, refrigeration, hot water and heating |
Gas/electricity split and opening hours
|
| Restaurant |
Cooking, ventilation, refrigeration, heating |
High usage, fixed rates and renewal timing
|
| Hotel |
Guest rooms, laundry, kitchens, heating |
Multi-meter and high-usage contracts
|
| Warehouse |
Lighting, heating, machinery, charging |
Half-hourly meters and usage analytics
|
| Manufacturer |
Machinery, process heat, gas and power |
Pass-through/flexible options and efficiency
|
| Salon |
Heating, hot water, equipment and lighting |
Small business fixed contracts
|
| Clinic |
Heating, equipment, IT and compliance |
Reliability, meter type and fixed rates
|
| Landlord |
Communal energy, landlord supplies, voids |
Multi-site and tenant billing considerations
|
What’s the Best Business Energy Option?
If you are a small business:
- Fixed contracts (1-3 years)
- Compare brokers for best rates
If you are high usage (hospitality/manufacturing):
- Negotiate contracts early
- Avoid variable tariffs
If you want green energy:
- Choose suppliers with REGOs
- Consider long-term renewable contracts
What is Business Energy?
Business energy refers to electricity and gas packages specifically designed for commercial premises. It’s different from residential energy in four key ways:
- Higher usage volumes due to equipment, lighting, and long hours.
- Bespoke tariffs tailored to business needs.
- Longer contracts (1-5 years) without a 14-day cooling-off period.
- More advanced options for smart meters and renewable energy.
Fixed vs variable business energy contracts
| Contract type |
Best for |
Main benefit |
Main risk |
| Fixed-rate contract |
Most SMEs |
Budget certainty |
You may miss lower rates if markets fall |
| Variable contract |
Short-term flexibility |
Can move with market changes |
Costs can rise quickly |
| Deemed contract |
Businesses that moved premises without agreeing a contract |
Temporary default supply |
Usually poor value |
| Out-of-contract rate |
Businesses whose contract ended without renewal |
Temporary supply |
Can be expensive |
| Flexible contract |
Larger or high-usage businesses |
More sophisticated buying |
More complex and riskier |
| Pass-through contract |
Larger users needing transparency |
Shows some underlying charges separately |
Costs can vary |
| Green tariff |
ESG-focused businesses |
Supports renewable electricity claims |
Check evidence and pricing |
Most small businesses prefer fixed contracts because they make budgeting easier.
High-usage businesses may need broker or procurement advice.
Deemed rates and out-of-contract business energy
Deemed and out-of-contract rates are two of the biggest reasons businesses overpay.
Deemed contract
A deemed contract usually applies when you move into business premises and use energy without agreeing a contract with a supplier.
Out-of-contract rate
An out-of-contract rate can apply when your fixed contract ends and you have not agreed a new deal – both can be expensive compared with a negotiated contract.
You could be on a deemed or out-of-contract tariff if:
- you recently moved premises
- your contract ended without renewal
- you do not know your contract end date
- your bills mention deemed, variable or default terms
- you inherited a meter from a previous tenant
- your supplier has not confirmed a fixed contract
Compare quotes as soon as possible if you think your business is on deemed or out-of-contract rates.
Compare Business Energy Quotes
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Business energy brokers: what to check
Business energy brokers can help compare suppliers and negotiate contracts, but it’s important to understand how they are paid.
Before using a broker, ask:
- which suppliers do you compare?
- are you whole-of-market?
- how are you paid?
- is commission included in the unit rate?
- what is the total commission?
- do you charge separate fees?
- how long is the contract?
- are you recommending fixed, variable or flexible terms?
- what happens at renewal?
- will you remind me before renewal?
- do I need to sign a Letter of Authority?
- can I see the full quote breakdown?
- are there exit fees?
- what happens if the supplier rejects the contract?
- who handles disputes?
What information do you need to compare business energy?
To compare business energy quotes, have these details ready:
- latest electricity bill
- latest gas bill
- current supplier
- contract end date
- MPAN number for electricity
- MPRN number for gas
- annual kWh usage
- meter type
- half-hourly meter details if applicable
- supply address
- business name
- company registration number if applicable
- current unit rate
- current standing charge
- VAT status
- green energy requirements
- preferred contract length
- whether you have multiple sites
How to compare business energy quotes properly
Do not compare only headline unit rates.
Compare:
- electricity unit rate
- gas unit rate
- standing charge
- contract length
- start date
- end date
- estimated annual cost
- payment terms
- VAT treatment
- Climate Change Levy
- pass-through charges
- broker commission
- exit fees
- renewal terms
- green energy evidence
- customer service
- smart meter support
- multi-site billing
- complaints handling
Ask each supplier or broker to show the estimated annual cost based on the same usage.
Green business energy tariffs
Green business energy tariffs may help businesses support sustainability goals, but not all green tariffs are the same.
Before choosing a green tariff, check:
- is the electricity backed by REGOs?
- what percentage is renewable?
- is it matched annually or more frequently?
- does the supplier provide reporting?
- is green gas included or just electricity?
- are carbon offsets used?
- how much more does it cost?
- does it support your ESG reporting?
- can you combine it with energy efficiency measures?
VAT and Climate Change Levy on business energy
Most businesses pay VAT on energy and can also pay Climate Change Levy.
However, reduced rates or exemptions may apply in some situations, such as:
- low levels of energy use
- charitable non-business use
- some qualifying activities
- certain Climate Change Agreement arrangements
The Climate Change Levy is charged on many business energy bills and rates can change by year.
Check your bill and supplier terms carefully, especially if you are a charity, small user, energy-intensive business or mixed-use site.
Common business energy mistakes to avoid
- comparing only unit rates
- ignoring standing charges
- not knowing your contract end date
- missing your renewal window
- staying on deemed rates after moving premises
- accepting a phone contract without checking terms
- not asking about broker commission
- choosing too long a contract without understanding risk
- choosing variable rates without understanding volatility
- ignoring VAT and Climate Change Levy
- not checking green tariff evidence
- failing to compare gas and electricity separately
- assuming domestic price cap protections apply to business energy
- not reviewing usage after business changes
- leaving quotes until the last minute
Business energy contract renewal checklist
Before renewal, check:
- current contract end date
- renewal window
- current unit rate
- current standing charge
- annual kWh usage
- meter type
- whether you are on a deemed or out-of-contract rate
- broker commission
- exit fees
- whether automatic renewal applies
- whether prices are fixed or pass-through
- whether green energy is required
- payment terms
- any changes to business usage
- whether you are moving premises
- whether there are multiple sites
- whether you need smart meter support
- whether your current supplier has served notice
Features of Business Energy
Business suppliers often offer:
-
Bulk usage tariffs, higher thresholds than domestic plans
-
Smart meter installations and real‑time monitoring
-
Renewable energy options with certificates or offsets
-
Commercial contract terms (less cooling‑off period)
-
Multi‑site management, usage analytics and tailored support
How to Choose a Business Energy Provider
Follow this simple checklist:
-
Analyse your usage: Know your annual kWh, peak hours and meter type.
-
Compare multiple suppliers: Look at unit rates, standing charges, contract length and green options.
-
Ask the right questions: What are exit fees? Is a smart meter included? What support is available?
-
Look beyond price: Ensure the supplier fits your business needs for flexibility, sustainability and service quality.
How to reduce business energy costs
You might just be able to reduce business energy costs by:
- comparing quotes before renewal
- avoiding deemed and out-of-contract rates
- knowing your annual kWh usage
- negotiating before your contract ends
- checking broker commission
- choosing the right contract length
- using smart meters or AMR data
- reducing peak-time usage where possible
- improving lighting efficiency
- reviewing heating and cooling settings
- maintaining boilers and HVAC
- reducing overnight consumption
- training staff
- reviewing refrigeration and kitchen equipment
- consolidating multi-site contracts
- considering solar or on-site generation where practical
Business energy for small businesses
Small businesses should usually prioritise:
- simple fixed contracts
- clear unit rates
- clear standing charges
- no hidden commission surprises
- renewal reminders
- accurate meter readings
- smart meter support
- avoiding deemed rates
- avoiding long contracts they do not understand
- checking VAT and CCL treatment
Small shops, salons, cafés and offices should compare using real annual kWh usage, not just monthly spend.
Compare Small Business Energy Quotes
Free quotes • No obligation • Compare tariffs for SMEs
Business energy for high-usage businesses
High-usage businesses need a more careful comparison process, including:
- restaurants
- hotels
- care homes
- manufacturers
- warehouses
- cold storage sites
- gyms
- supermarkets
- bakeries
- laundries
- data-heavy premises
- multi-site businesses
These businesses should compare:
- fixed vs flexible contracts
- pass-through charges
- half-hourly meter data
- seasonal usage
- peak demand
- multi-site billing
- green tariff options
- energy efficiency investment
- demand management
- procurement timing
- broker support
Moving premises and business energy
If your business moves premises, check energy arrangements before you move in.
You should:
- take meter readings on move-in day
- identify current supplier
- check whether a contract already exists
- avoid staying on deemed rates
- compare quotes quickly
- update billing details
- confirm MPAN and MPRN numbers
- check whether the site has gas and electricity
- review meter type
- check previous usage if available
- arrange smart meter or AMR support where relevant
Major UK Business Energy Suppliers
| Supplier |
Why compare it? |
|
| British Gas Business |
Large supplier with broad business energy products |
Unit rates, standing charges and contract terms
|
| EDF Business |
Business electricity and gas options |
Contract length, service and quote terms
|
| E.ON Next Business |
Business energy and green options |
Tariff details, billing and support
|
| ScottishPower Business |
Business gas and electricity supply |
Pricing, contract and account management
|
| SSE / OVO Energy Solutions |
Business and larger energy users |
Suitability for size and usage profile
|
| Octopus Energy for Business |
Business energy and renewable-focused options |
Pricing, contract terms and support
|
| TotalEnergies Gas & Power |
Business gas and electricity supply |
Contract structure and service
|
| Crown Gas & Power |
Business gas specialist and energy supply |
Gas pricing and contract terms
|
| Opus Energy |
SME business energy supply |
Contract, renewal and support terms
|
| SmartestEnergy Business |
Business energy and renewable options |
Suitability for usage and contract needs
|
| Drax Energy Solutions |
Larger businesses and renewable supply |
Half-hourly and large-user requirements
|
| United Gas & Power |
Business energy supply |
Pricing, contract and support terms
|
This is not a fixed ranking.
The best supplier depends on your usage, meter type, region, credit profile, contract timing and appetite for fixed or flexible pricing.
Compare Business Energy Suppliers
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Business Energy FAQS
How much does business electricity cost in the UK?
Business electricity rates often vary widely by supplier, location, contract and usage. As a guide, many businesses may see quotes around 18p-32p+ per kWh, plus standing charges, VAT and other applicable costs.
How much does business gas cost in the UK?
Business gas rates vary by supplier, usage, region and contract. As a guide, many businesses may see quotes around 5p-11p+ per kWh, plus standing charges, VAT and other applicable charges.
Are business energy prices capped?
No. Businesses are not protected by the domestic energy price cap. Business energy prices are usually set through commercial contracts.
What is the cheapest business energy supplier?
There is no single cheapest business energy supplier for every company. The cheapest quote depends on your usage, location, meter type, contract timing and credit profile.
Can I switch business energy supplier?
Yes, but usually only when your current contract ends, unless you are on a deemed or out-of-contract tariff or you are willing to pay any applicable exit fees.
What is a deemed energy contract?
A deemed contract usually applies when a business moves into premises and uses energy without agreeing a formal contract with the supplier.
What are out-of-contract energy rates?
Out-of-contract rates can apply when your fixed business energy contract ends and you have not agreed a new contract.
How long do business energy contracts last?
Business energy contracts can last up to five years, although many SMEs choose one, two or three-year fixed contracts.
Is there a cooling-off period for business energy contracts?
Usually no. Ofgem says there is no cooling-off period after agreeing a business energy contract, even if agreed over the phone.
What is a business energy broker?
A business energy broker helps compare suppliers and contracts. Brokers may charge a separate fee or receive commission included within your unit rates.
How do brokers get paid?
Some brokers are paid by commission from the supplier, which may be included in your quoted unit rate. Always ask how commission or fees are charged.
What is a Letter of Authority?
A Letter of Authority allows a broker to contact suppliers and request information or quotes on your behalf. Check what powers it gives before signing.
What information do I need to compare business energy?
You usually need your latest bill, MPAN, MPRN, annual kWh usage, current supplier, contract end date, supply address and preferred contract length.
How far before renewal should I compare?
Start comparing before your renewal window closes. Many businesses review quotes three to six months before contract end, depending on supplier terms.
What is a standing charge?
A standing charge is a daily fixed charge for being connected to the energy network, regardless of how much energy you use.
What is a unit rate?
A unit rate is the price you pay for each kilowatt hour of electricity or gas used.
Do businesses pay VAT on energy?
Most businesses pay VAT on energy, but reduced rates may apply for some low-usage, charitable or qualifying uses.
What is Climate Change Levy?
Climate Change Levy is a tax charged on many business energy bills. Some exemptions and reliefs may apply.
Are green business energy tariffs available?
Yes. Many suppliers offer green electricity tariffs, but you should check whether they are backed by REGOs and whether they meet your reporting needs.
How can I reduce business energy bills?
Compare quotes before renewal, avoid deemed rates, check broker commission, use smart meter data, reduce waste, improve efficiency and review usage regularly.
Related Business Energy Guides
Compare & Switching Guides
Sector-Specific Energy Guides
Tariffs, Pricing & Market Explained
Meters, Technical & Admin Guides
Green & Renewable Energy Options
Major UK Business Energy Suppliers
Cost Reduction & Strategy
Market & Government Updates
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James Ward is the CEO & Founder of Compare Your Business Costs — a UK-verified comparison platform helping SMEs save money on business broadband, leased lines, phone systems, mobile telecoms, managed services and IT support. With over 10 years of experience in telecoms and technology procurement, James is a trusted UK business expert featured in national media and verified on Companies House.
Co Authors :
Hi, I’m Ally Cox, a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.
With 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.
Before joining CompareYourBusinessCosts, I worked across various industries, gaining hands-on experience in HR, copywriting, and business operations- from clocking-in systems to card machines and office technology.
My goal is simple: to help UK businesses make informed, confident decisions when choosing products and services that improve efficiency and save money.
