How Much Is The Average Business Energy Bill In The UK?

The amount spent on business energy is largely determined by several factors including the industry, usage and location. The majority of UK businesses are classed as SMEs, and the average energy usage sits at around 25,000 kWh annually.

You may be more interested in how this relates to your business; whilst we can offer rough guidance on a ballpark figure for business types based on annual consumption, the most accurate insight as to what your business energy bills should be will be through live comparison. If we’ve happened to pique your curiosity, you can compare prices in just 60 seconds. Even better, if you like what you see, you can switch entirely online.

What Is The Average Business Energy Bill In 2023?

The market has stabilised since seeing higher prices in 2022. You may be wondering what your current business energy bill should look like. Well, here’s a little sneak peek into average UK business energy bills in 2023.

*Average annual usages in kWh are 5,000 (micro), 15,000 (small), 25,000 (medium) and 50,000 (large). Business energy bill examples are based on a 2-year fixed based on July 2023 prices.

These prices are based on non-specific estimates. The prices you may see today will likely be very different depending on your own business’s usage and circumstances.

What Is The Average Unit Rate On Business Energy Bills?

The two main aspects of energy costs are your unit rate and standing charges.

The unit rate is the cost of each unit of energy used, measured in cost per kilowatt hours (kWh). A standing charge is a fixed daily cost which doesn’t change. It covers the cost of delivering your gas and electricity to your business.

The average cost of business electricity in 2023 is 31.2p per kWh for a 2-year fixed. The average cost of business gas is much lower at 9.54p pence per kWh.

What Affects The Cost of My Business Energy Bills?

The cost of business gas and business electricity depends on several factors, including:

• The size of your business
• Where your business is located
• The number of people you employ
• The type of service you provide

What is The Average Micro Business Energy Bill?

A micro business is defined as having between 1 and 9 employees. In most cases, overheads for micro businesses are likely to be low.

As micro businesses use less energy, they will face higher unit rates. In 2023, the average unit rate for a micro business is 31.10p per kWh for electricity and 10.6p per kWh for gas.

A total electricity usage of 5,000 kWh would give a micro business an average bill of £1,797.85 per year. If we assumed that gas usage is the same amount (highly unlikely) the annual gas bill would be £698.09.

What is The Average Small Business Energy Bill?

A small business is classed as having between 10 and 49 employees. According to the latest government figures, there are over 200,000 businesses employing between 10 and 49 people.

The average small business unit rates in 2023 are 31.10p per kWh for electricity and 9.70p per kWh for gas.

A total electricity usage of 15,000 kWh would give a small business an average bill of £4,950.27 per year. If we assumed that gas usage is the same amount (highly unlikely) the annual gas bill would be £1,635.50.

What is The Average Medium-Sized Business Energy Bill?

Medium-sized businesses are classed as having between 50 and 250 employees. Energy usage is likely to vary for medium-sized businesses. It’s important to bear that in mind when comparing energy costs.

The average medium business unit rates in 2023 are 31.30p per kWh for electricity and 9.50p per kWh for gas with a total energy usage of 25,000 kWh.

A total electricity usage of 25,000 kWh would give a medium-sized business an average bill of £8,255.58 per year. If we assumed that gas usage is the same amount (highly unlikely) the annual gas bill would be £2,589.73.

What is The Average Large Business Energy Bill?

Large businesses are defined as any business with over 250 employees. Large businesses will pay a lower unit rate due to their high energy usage.

The average large business unit rates in 2023 are 31.30p per kWh for electricity and 9.40p per kWh for gas with a total energy usage of 50,000 kWh.

The average large business unit rates in 2023 are 18.00 pence per kWh for electricity and 3.70 pence per kWh for gas with a total energy usage of 155,000 kWh.

A total electricity usage of 50,000 kWh would give a large business an average bill of £16,178.46 per year. If we assumed that gas usage is the same amount (highly unlikely) the annual gas bill would be £4,972.83.

At Business Energy, we have a specialist large business team to help you find the best energy deals to meet your exact requirements. Our experts can provide advice on:

• Half hourly meters
• Multi-site meters
• Energy management

How Can I Reduce My Business Energy Bills?

The fastest way to reduce your business energy bills is to switch suppliers for a better deal. However, many businesses are reluctant to switch their energy supplier.

In fact, recent research has found that half of SMEs won’t switch their energy supplier with 51% considering the process to be too complicated.

22% of SMEs believed that switching suppliers would be too expensive. Incredibly, 51% said switching energy suppliers is harder than a tooth extraction or firing people.

Why It’s Important To Switch Business Energy Supplier

With businesses believing switching energy suppliers is worse than pulling teeth, many will be left overpaying for their energy bills.

Businesses that have not renegotiated their energy deal could be on out-of-contract rates. These are much more expensive than negotiated rates.

By switching suppliers, you can compare the latest deals from a wide range of energy suppliers. It’s worth keeping in mind that the average business energy bills won’t be the cheapest available.

At Business Energy, we can manage the entire switch on your behalf. This includes finding a deal to match the needs of your business. We’ll also be there to work with your new and old suppliers to arrange a smooth switch.

Ready to compare business energy prices? Find out how much you could save by completing our online comparison form.