A typical 200 m² office spends about £11,100 a year on gas and electricity, or £924 a month including VAT, at 2026 prices. That estimate uses typical office energy use from CIBSE and the latest government prices from the Department for Energy Security and Net Zero (DESNZ). Your own bill depends on your building, your hours and the business energy contract you sign.
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This guide covers your whole energy bill: gas and electricity together. It shows gas prices by business size, typical yearly bills for an office, a restaurant and a warehouse, and the VAT and levy rules for each fuel. For electricity on its own, our business electricity prices per kWh guide has the full table for every size of business.
How we researched this guide: prices come from DESNZ quarterly tables published on 29 September 2026. Typical energy use per square metre comes from CIBSE TM46 benchmarks. VAT rules come from HMRC Notice 701/19 and contract rules from Ofgem. We checked every figure on 9 October 2026.
- Very small gas users paid 9.3p per kWh in Q2 2026 - that is the DESNZ average for sites using under 278 MWh of gas a year, including the Climate Change Levy but not VAT
- A typical 200 m² office pays about £924 a month for both fuels - that combines CIBSE typical use with DESNZ Q2 2026 prices and adds VAT
- Small gas users pay 5% VAT instead of 20% - premises using no more than 145 kWh of gas a day qualify for the reduced rate
- Gas prices for the smallest users swing every quarter - the DESNZ average rose from 7.3p per kWh in Q1 2026 to 9.3p in Q2
- Both fuels carry the same Climate Change Levy of 0.801p per kWh - that rate applies from 1 April 2026 and rises to 0.827p in April 2027
How Much Does Business Energy Cost in 2026?
Business gas cost between 3.8p and 9.3p per kWh in Q2 2026, and electricity between 22.2p and 38.4p. The smaller your business, the more you pay per unit. These DESNZ averages include the Climate Change Levy but not VAT.
DESNZ sorts businesses into size bands for each fuel. The gas bands are much wider than the electricity ones. A site can be very small for gas and small for electricity at the same time. Each price is a fully delivered average that covers all charges except VAT.
| Fuel and DESNZ band | Yearly use | Price per kWh, incl. CCL |
|---|---|---|
| Gas, very small | Under 278 MWh | 9.31p |
| Gas, small | 278 to 2,777 MWh | 4.86p |
| Gas, medium | 2,778 to 27,777 MWh | 4.20p |
| Gas, large | 27,778 to 277,777 MWh | 3.83p |
| Electricity, very small | Under 20 MWh | 38.36p |
| Electricity, small | 20 to 499 MWh | 28.59p |
| Electricity, medium | 2,000 to 19,999 MWh | 25.17p |
Source: DESNZ table 3.4.2, Q2 2026 (April to June), provisional. The next update is due on 17 December 2026. One MWh is 1,000 kWh.
What Is a Typical Business Energy Bill?
A 200 m² office pays about £924 a month for gas and electricity, a 150 m² restaurant about £1,035 and a 1,000 m² warehouse about £2,490. These estimates use typical energy use for each building type and include VAT.
| Building | Electricity a year | Gas a year | Electricity cost incl. VAT | Gas cost incl. VAT | Total a month |
|---|---|---|---|---|---|
| Office, 200 m² | 19,000 kWh | 24,000 kWh | £8,746 | £2,346 | £924 |
| Restaurant, 150 m² | 13,500 kWh | 55,500 kWh | £6,214 | £6,200 | £1,035 |
| Warehouse, 1,000 m² | 35,000 kWh | 160,000 kWh | £12,008 | £17,875 | £2,490 |
How we worked these out: yearly use is floor area multiplied by the typical benchmark in CIBSE TM46. That is 95 kWh of electricity and 120 kWh of heating fuel per m² for an office, 90 and 370 for a restaurant, and 35 and 160 for a storage warehouse. We assumed gas heating and applied the DESNZ Q2 2026 price for the matching size band.
The office’s gas is charged 5% VAT, because it averages about 66 kWh a day, under the 145 kWh limit. The restaurant and warehouse use more than that, so their gas carries 20%. All three use more than 33 kWh of electricity a day, so electricity carries 20% in every case.
Treat these as a starting point, not a quote. A building with long opening hours, electric heating or cold storage will use far more. To model your own premises, try our business energy cost calculator.
How Much Does Business Gas Cost per kWh?
Business gas cost 9.31p per kWh for very small users in Q2 2026 and 4.86p for small users, including CCL. Large users paid under 4p. Gas for the smallest businesses is the most volatile price on the DESNZ tables.
| Gas band | Q2 2021 | Q2 2025 | Q1 2026 | Q2 2026 |
|---|---|---|---|---|
| Very small | 4.56p | 8.36p | 6.77p | 8.80p |
| Small | 2.36p | 4.61p | 4.28p | 4.37p |
| Medium | 2.14p | 4.16p | 3.98p | 3.86p |
| All businesses | 2.40p | 4.97p | 4.79p | 4.94p |
Prices per kWh excluding CCL and VAT. Source: DESNZ table 3.4.1.
The very small gas price jumped by about 2p between the first two quarters of 2026. Small and medium users saw much smaller moves. For the market behind these prices, see our guide to wholesale business gas prices.
How Much VAT and Climate Change Levy Do Businesses Pay?
Most businesses pay 20% VAT on gas and electricity. Small users pay the reduced rate: up to 145 kWh of gas a day or 33 kWh of electricity a day. Both fuels also carry the Climate Change Levy of 0.801p per kWh.
| Charge | Gas | Electricity |
|---|---|---|
| Standard VAT | 20% | 20% |
| Reduced VAT applies up to | 145 kWh a day or 4,397 kWh a month | 33 kWh a day or 1,000 kWh a month |
| Climate Change Levy from 1 April 2026 | 0.801p per kWh | 0.801p per kWh |
| Climate change agreement discount | 89% | 92% |
The VAT limits apply to each premises and come from HMRC VAT Notice 701/19. From 1 October 2026 to 31 March 2027, Great Britain has a temporary 0% rate for electricity that qualifies for the reduced rate: domestic use, a charity’s non-business use, and supplies under the small-use limits above, which VAT law treats as domestic. Ofgem says the change applies to some small businesses. HMRC’s notice applies it to electricity and does not mention gas, so do not assume your gas bill is included. The Climate Change Levy rises to 0.827p per kWh for both fuels from 1 April 2027.
What Happens When Your Business Energy Contract Ends?
If your contract ends and you sign nothing new, your supplier moves you to a deemed or out-of-contract rate. Ofgem says these rates are usually higher than a negotiated contract.
The gap can be large. In autumn 2026, deemed electricity at npower and E.ON Next cost 37.2p to 46.0p per kWh before VAT and CCL, against 27.87p for the DESNZ small-business average. Our electricity prices guide shows what that means for a year’s bill. Check your gas supplier’s deemed rates too, because the same rule applies.
You count as a microbusiness if you use up to 100,000 kWh of electricity or 293,000 kWh of gas a year, or have fewer than 10 staff and turnover up to £2 million. Your supplier must then tell you the renewal price before a fixed contract ends, and you can leave a rolling contract with 30 days’ notice.
Moving Into New Premises? Budget for Energy First
When you move into new premises, you start on the existing supplier’s deemed rates until you sign a contract. EDF describes deemed tariffs as the default for anyone using energy without an agreed contract, such as at a new site.
Find out who supplies the building before you get the keys, and ask for contract quotes for both fuels. Take meter readings and photos on the day you move in, so your first bill starts from the right point. Use the building estimates above to set a monthly budget, then adjust it once you have a few months of real bills.
If you are opening an office of around 200 m², plan for roughly £900 a month once you are on a contract. A restaurant or a warehouse will need more, mostly because they use far more gas. Treat these as averages: a single quote for your address is worth more than any benchmark.
How to Cut Your Business Energy Costs
Renewing both contracts on time is the biggest saving. Then compare the full yearly cost for each fuel, check what any broker is paid, and cut the use that drives your bill.
- Track both end dates. Your gas and electricity contracts may end on different dates. Note both and start comparing a few months ahead.
- Compare each fuel on total cost. Ask for the unit rate and standing charge, then work out the year at your usage. Some suppliers offer no standing charge tariffs. Our list of top business energy suppliers is a good place to start.
- Check broker fees. For contracts signed since 1 October 2024, Ofgem requires broker fees to appear in the contract’s principal terms. See how business energy brokers are paid before you use one.
- Cut the use that costs most. For an office, electricity is the bigger bill even though gas use is higher, because it costs about four times more per kWh. Our office energy use guide shows where it goes. Larger sites can look at commercial solar panels.
Last updated: October 2026. Prices checked against DESNZ, HMRC, Ofgem, EDF and CIBSE TM46 on 9 October 2026.
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