Rates and data last verified 7 October 2026 by the ExpertSure editorial team. Sources are listed in the methodology below the calculator.
A business energy cost calculator helps UK companies estimate their annual electricity and gas expenditure based on actual usage patterns, tariff type, and contract terms. Costs vary hugely by sector and premises size: on the rates and benchmarks this calculator uses, a 100m² office comes to about £4,258 a year and a 150m² restaurant about £10,930, before Climate Change Levy and VAT.
The calculator uses the Department for Energy Security and Net Zero (DESNZ) average delivered prices for non-domestic customers, excluding Climate Change Levy and VAT. Electricity runs from 37.67p per kWh for businesses using under 20 MWh a year down to 24.61p at 2,000 MWh and above, and gas from 8.80p to 3.68p per kWh. Your band follows from your usage, so you do not pick a business size.
There is no business price cap, so your own rates depend on your supplier, contract length, and whether you are on a fixed or variable tariff. By entering your premises type and floor area, you can benchmark your spending against typical figures and see whether switching supplier or tariff could reduce your annual bill.
- A 200m² office uses about 17,000 kWh of electricity a year - the calculator’s benchmark is 85 kWh per square metre, so compare your meter readings against it
- That office costs about £8,516 a year in total - £6,404 for electricity and £2,112 for gas, before Climate Change Levy and VAT
- Restaurants use about 3 times the electricity per square metre of warehouses - 168 kWh against 53 kWh, because of cooking, extraction and refrigeration
- There is no business price cap - delivered rates run from 24.61p to 37.67p per kWh for electricity and 3.68p to 8.80p for gas depending on your usage band, so contract timing matters
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How to Use This Calculator
Pick your premises type – office, retail, restaurant or warehouse. Each type sets a typical electricity and gas use per square metre (ExpertSure estimates).
Enter your floor area – the total internal floor area in square metres. The calculator turns this into an estimated annual kWh figure.
Say whether you have gas – choose No for an all-electric premises, such as one heated by heat pumps.
Choose your region and efficiency level – region nudges usage up or down, and the efficiency setting estimates savings from LED lighting, smart meters or a fuller upgrade.
Read your estimate – your price band is set automatically from the annual kWh, using the DESNZ non-domestic averages, and the result shows electricity, gas, Climate Change Levy and VAT. If you know your real usage from a bill, compare it with the estimate.
Use our free calculator to estimate your business electricity and gas costs based on your premises type, size, and location.
Average Business Energy Costs in the UK
This calculator uses DESNZ Quarterly Energy Prices average delivered rates for UK non-domestic customers, excluding Climate Change Levy and VAT: 37.67p per kWh for electricity and 8.80p per kWh for gas for the smallest users. There is no price cap protection, and these are not Ofgem figures.
DESNZ publishes average prices by annual consumption band, and the band you fall in matters more than your business size. For electricity: 37.67p per kWh under 20 MWh, 27.87p from 20 to 499 MWh, 27.09p from 500 to 1,999 MWh and 24.61p from 2,000 MWh. For gas: 8.80p per kWh under 278 MWh, 4.38p from 278 to 2,777 MWh, 3.86p from 2,778 to 27,777 MWh and 3.68p above that. Smaller users pay more per kWh. The Q2 2026 figures are provisional and DESNZ may revise them.
Unlike domestic energy, there is no business price cap. Rates fluctuate with wholesale markets, meaning businesses must actively manage contracts and switch suppliers regularly to avoid overpaying. Standing charges vary by supplier and meter; DESNZ’s averages are fully delivered prices that already include them, so the calculator adds none separately. Data: DESNZ Q2 2026, published 29 September 2026; next update 17 December 2026.
Larger users pay far less per kWh: electricity above 2,000 MWh a year averages 24.61p against 37.67p under 20 MWh, and gas above 27,778 MWh averages 3.68p against 8.80p under 278 MWh. Most SMEs lack the scale or procurement expertise to access those deals without a broker.
Energy Consumption by Business Type
This calculator’s electricity benchmarks put offices at 85 kWh/m² per year, retail at 118 kWh/m², and restaurants at 168 kWh/m², making restaurants the highest consumers per square metre among the common business types it covers.
Energy consumption varies dramatically by business type. The calculator uses these electricity benchmarks, in kWh per square metre per year:
- Office: 85 kWh/m² (mostly heating, lighting, and computers)
- Retail: 118 kWh/m² (lighting, HVAC, refrigeration)
- Restaurant/Café: 168 kWh/m² (commercial kitchens, ventilation, refrigeration)
- Warehouse: 53 kWh/m² (minimal heating, basic lighting)
- Manufacturing: Highly variable and machinery-dependent, so the calculator has no benchmark for it
Restaurants use approximately 3× more energy per square metre than warehouses due to energy-intensive cooking equipment, extraction systems, and extended refrigeration. At that benchmark, a 150m² restaurant uses roughly 25,200 kWh of electricity per year (168 x 150).
How to Reduce Business Energy Costs
UK businesses can cut energy costs through LED lighting upgrades, smart meters, improved insulation, and HVAC optimisation, and many measures pay back within a few years.
While energy rates are largely fixed by your contract, consumption is within your control. The most impactful cost-reduction strategies for UK businesses are:
1. LED Lighting Upgrade
Switching from halogen or fluorescent to LED lighting reduces lighting energy use by 50–80%. Lighting is a meaningful share of an office’s energy use, so this change can cut the bill noticeably, and payback is usually short.
2. Smart Meters and Monitoring
Smart meters provide real-time usage data and make it impossible to hide inefficiencies. Businesses with smart meters can often reduce consumption simply by identifying waste (e.g., equipment left on overnight, oversized HVAC systems).
3. Insulation and Draught-Proofing
Older commercial buildings can lose a large share of their heat through walls, roofs, and windows. Insulation upgrades, secondary glazing, and draught-proofing can reduce heating costs.
4. HVAC System Upgrades
Heating and cooling are usually the largest single share of energy use in a commercial building. Upgrading to modern, efficient HVAC systems with zoned controls and programmable thermostats can cut this significantly.
Quick Wins (Zero or Low Cost)
- Reduce thermostat by 1°C: Cuts the heating bill, because less heat is lost through the building fabric
- Turn off equipment overnight: Computers, printers, kitchen equipment, which can add up to real savings over a year
- Switch to energy-efficient appliances: Fridges, dishwashers, coffee machines
- Use natural light: Reduce daytime lighting needs
- Employee awareness: Simple behaviour changes (closing doors, switching off lights) add up
Start with free or low-cost changes (thermostat adjustments, switching off equipment, LED bulbs) before investing in major upgrades. Many businesses can save without any capital expenditure.
Business Energy Costs by Premises Type
The table shows estimated annual electricity and gas costs for common UK business premises types, using the DESNZ Q2 2026 band rates (the band follows from each premises’ annual kWh) and ExpertSure’s own consumption benchmarks, which are estimates, not DESNZ figures. Figures use the Midlands rate with no efficiency saving and are before Climate Change Levy and VAT, which the calculator adds.
| Premises | Size | Electricity/yr | Gas/yr | Total/yr |
|---|---|---|---|---|
| Home office | 15m² | £480 | £0 | £480 |
| Small shop | 50m² | £2,223 | £220 | £2,443 |
| Small office | 100m² | £3,202 | £1,056 | £4,258 |
| Medium office | 200m² | £6,404 | £2,112 | £8,516 |
| Warehouse | 500m² | £7,386 | £1,804 | £9,190 |
| Large office | 500m² | £11,845 | £5,280 | £17,125 |
| Restaurant | 150m² | £7,023 | £3,907 | £10,930 |
Source: DESNZ Quarterly Energy Prices table 3.4.1, Q2 2026 (provisional) for unit rates; kWh per square metre are ExpertSure estimates. Actual costs vary by tariff, usage, and contract terms.
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