Business owners will appreciate the need to keep costs down. Energy costs can make up a large percentage of the costs of running a business, and so finding out if you’re paying more than you should is important. Actual usage, and actual costs, will depend on the size and nature of your business. However, it can be helpful to get an idea of typical levels of energy consumption for businesses, in order to work out right off the bat if yours seems unusually high (or low!).
Average business energy consumption
Different businesses will often have very different levels energy consumption. There are a number of factors which will affect how much energy a business consumes:
- Property/business size
- Heating, lighting and energy efficiency
- Number of employees
- Business hours
- Energy usage habits
- Type of business – for example an industrial business who operate heavy machinery with their electricity will use far more energy than a high street shop.
Energy usage is measured in kilowatt hours (kWh) for electricity and in units which are often converted to kWh on your bills for ease of comparison for gas. The best way to find out whether your business is using too much energy is to compare your energy consumption to similar-sized businesses. The table below will help you to give you a rough guide as to what size your business is so that it is easier to compare your energy consumption.
| Business Size | No. of Employees | Business Revenue |
| Micro business | 0 – 10 | £0 – £1,400,000 |
| Small business | 11 – 50 | £1,400,000 – £7,000,000 |
| Medium business | 51 – 250 | £7,000,000 – £36,000,000 |
| Large business | 251+ | £36,000,000 |
Average business electricity consumption
Below is a table showing the estimated average business electricity consumption for different sizes of business in the UK per year:
| Business Size | Low End Usage (kWh) | High End Usage (kWh) |
| Micro | 5,000 | 15,000 |
| Small | 15,000 | 30,000 |
| Medium | 30,000 | 50,000 |
| Large | 50,000 | 100,000+ |
Remember that these are estimated averages and can vary depending on a number of variables, such as:
- The appliances and machinery used – their intensity and duration used for.
- The time of day, week, and year that your business is operational
- The nature of your business
It is useful to have an idea of the average business energy consumption though. For example, if you have a micro business that uses as much electricity as a small or medium business then you may need to find out a way to reduce your energy consumption.
If you have a large business that uses more than 100,000 kWh of electricity a year, suppliers will handle your energy supply differently.
Average business gas consumption
Below is a table showing the estimated average business gas consumption for different sizes of business in the UK per year:
| Business Size | Average Gas Consumption (kWh equivalent) |
| Micro | 10,000 |
| Small | 25,000 |
| Medium | 45,000 |
| Large | 45,000+ |
As with electricity usage, gas usage will vary depending on the size of your business and other factors mentioned above. A restaurant with range cookers, for example, is going to use a lot more gas than a typical office.
What is an average UK business energy bill?
Business energy bills will vary depending on consumption, as well as on what type of tariff you’re on. When working out whether you pay a suitable amount for your business energy consumption, there are two figures you need to check:
- Standing charge – a flat daily rate that covers the cost of getting energy to your property. Here you are paying for access to energy, so you will be charged whether you use energy or not.
- Unit cost – this is the amount you pay per unit of gas or electricity used, measured in kWh.
Average business electricity rates:
| Business Size | Average Unit Cost per kWh | Standing Charge | Average Annual Bill Cost |
| Micro | 13.2p – 14.5p | 23p – 28p | £900 – £2,000 |
| Small | 12.4p – 14.1p | 23p – 28p | £2,000 – £3,100 |
| Medium | 12.2p – 13.3p | 23p – 28p | £3,100 – £7,200 |
Prices may vary according to your business location and meter type.
Average business gas rates:
| Business Size | Average Unit Cost per kWh | Standing Charge | Average Annual Bill Cost |
| Micro | 5p | 19p – 25p | £400 – £800 |
| Small | 4.8p | 19p – 25p | £800 – £1,400 |
| Medium | 4.4p | 24p – 25p | £1,400 – £2,250 |
Prices may vary according to your business location and meter type.
If you are paying more than other businesses of a similar size then do not panic! It may mean that you could make simple changes to your business, or even save money by switching energy deals.
How to reduce your business energy bills
Energy is a major expense for businesses, but it is also one of the easiest running costs to reduce. Here are some tips on how to do just that:
- Increase your business’s energy efficiency
Replacing old appliances with more modern, energy efficient machines will help to reduce energy consumption. You should also think about installing energy saving devices such as energy saving monitors, motion sensors for your lighting, LED lighting, smart thermostats and power strips. These simple devices can significantly reduce energy consumption in your business.
- Encouraging staff to improve their energy habits
By educating staff on energy usage you can reduce their personal energy consumption whilst at work. If all of your staff are wary of how much energy they are using, then they will be more likely to do the simple things right, like turning off lights and appliances they are not using.
- Installing energy saving technology
An energy management system (EMS) is a computer-aided tool that monitors and controls your business’s energy management. It will help you to pinpoint areas in your business where you use the most energy with advanced data analytics and help you to combat energy wastage.
- Switch energy supplier
Potentially the easiest way to save money on energy bills is to switch to a new tariff. Especially if you are on a deemed rate tariff, an out-of-contract rate, or a rollover contract, you could be paying far more per unit than you need to. Compare business gas or business electricity tariffs with Simply Switch to see if you could get a better deal with a new supplier.