Energy bills are one of the main outgoings for businesses – which is a bit of a drag, considering we’d rather invest that money in our operations.
We take a look average business energy bills in the UK, so you can see if you’re overpaying and, if you are, how you can save money.
Compare gas and electricity prices for your business
The main components of your energy bill are your unit price and standing charge. These are what you need to look at to see if you’re getting a good deal. The unit price is a cost per unit of energy you consume in kWh; the standing charge is a flat daily fee you pay in order to have access to energy in the first place.
On your bill however, you’ll also see a whole heap of other costs. These include but are not limited to: VAT, the Climate Change Levy, Transmission Use of System charges and Distribution Use of System charges (in a nutshell, the cost of getting the energy to where you are!) and any metering costs.
But how exactly do you know if you’re getting cheap business energy or paying too much?
Because business energy deals are somewhat custom-made, there aren’t set tariffs to compare in the way we do for domestic energy.
On the whole, businesses spend much more on electricity than gas, which is why tariffs are usually single-fuel. Cutting back on your electricity consumption is the best way to save money on your energy bills, and we’ll give you some tips on how to do so later on.
| Business size | Average Electricity Usage per Annum | Average Gas Usage per Annum | Total Bill |
|---|---|---|---|
| Micro business | 7,500 kWh | 5,000 kWh | £1,518 |
| Small business | 20,000 kWh | 15,000 kWh | £3,664 |
| Medium business | 35,000 kWh | 35,000 kWh | £6,563 |
| Large business | 90,000 kWh | 75,000 kWh | £15,609 |
Crucially, business energy bills will depend on a multitude of factors, including: the business size, the industry, your location, your tariff type, length of contract, and your consumption. Therefore, your energy bill could still differ considerably from a business operating in the same location as you and of a similar size. So, to stress again, these are average prices to give you a good idea to see if you’re paying over the odds.
However even if your business does consume above-average levels of energy then we can still help you get your bill down. Fill in our quick form to receive a selection of business energy quotes to see if you can get a cheaper tariff than the ones you’re currently on.
Small businesses are, on the whole, working with much smaller margins than big corps – especially since the Coronavirus outbreak. As such, the dreaded energy bill is one of the biggest expenditures facing small businesses. Above, we’ve listed average figures for small business electricity and gas rates, so this should at least give you a rough idea of whether you’re seriously overpaying.
According to the Citizens Advice Bureau, small businesses – those up to a certain size – can’t be billed for energy consumption from more than twelve months ago. As a result, some are being erroneously overcharged, so be sure to check your bill. If you think you’re overpaying, take regular meter readings and send them to your supplier, as they could be overestimating your consumption.
Critically, towards the end of your contract, you should start to compare business energy quotes with a view to switching suppliers – doing so is the most effective way to get cheaper electricity and gas rates. If, however, you still have some time left until your contract ends, there are other ways to reduce your energy bill.
Reducing your energy consumption as a business will improve your carbon footprint and save you money. But when it comes to employees, it’s not quite as simple as telling your kids to “put another jumper on” or “switch your bedroom light off’. Offices need to be properly heated and lit; there may also be equipment that can never be turned off and is essential to the running of your business.
Cutting back on your emissions to reduce your energy bill can be tough – how do you begin? Here are some ideas:
What appear to be minor adjustments can, in fact, collectively have a rapid and significant impact on reducing your business energy bills.
When your contract draws to a close and you’ve made energy-efficient adjustments like the superstar business owner you are, run a business energy comparison with Simply Switch. We’ll show you tariffs from a whole host of UK energy suppliers so you can start saving money – all you need to do is pop in your postcode and enter a few details about your company.