What is the average business electricity price in the UK?

Average business electricity prices commonly range from around 18p per kWh for large consumers to around 38p per kWh for micro businesses, with the exact figure depending on region, meter type and current market conditions.

What is the average business gas price in the UK?

Average business gas prices typically range from around 5.5p per kWh for larger consumers to around 11p per kWh for micro businesses, though actual quotes vary by region and contract length.

Why do small businesses pay more per kWh than large businesses?

Small businesses generally have lower and less predictable consumption, and suppliers cannot spread pricing risk across a large stable volume in the same way they can with a large consumer, resulting in a higher quoted unit rate.

Do average business energy prices include VAT?

Published averages are usually shown excluding VAT, since most business energy is charged at the standard rate, though certain qualifying businesses may be eligible for a reduced rate. Always check whether a specific figure includes or excludes VAT.

How often do average business energy prices change?

Averages can shift regularly, sometimes month to month, in response to wholesale market movements, so any average figure should be treated as a snapshot for a particular period rather than a fixed long-term benchmark.

Average Business Energy Prices UK

Why averages differ by business size

Suppliers price contracts partly based on the volume and predictability of consumption. Larger businesses with higher, more stable usage patterns and half-hourly metering typically receive more competitive unit rates than smaller businesses whose usage is lower and harder to forecast precisely.

Average electricity prices by business size

Business size	Average unit rate (p/kWh)	Average standing charge (p/day)
Micro business	30 - 38	30 - 55
Small business	27 - 34	28 - 50
Medium business	23 - 30	32 - 60
Large business	18 - 27	40 - 90

Illustrative average electricity prices by business size Averages are indicative and change with market conditions, region and supplier.

Average gas prices by business size

Business size	Average unit rate (p/kWh)	Average standing charge (p/day)
Micro business	8 - 11	25 - 50
Small business	7 - 10	25 - 45
Medium business	6.3 - 9	30 - 55
Large business	5.5 - 8	35 - 80

Illustrative average gas prices by business size Averages are indicative and change with market conditions, region and supplier.

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Regional variation in averages

Average prices also differ by region due to variation in local network charges, which are set by the regional electricity and gas distribution networks. A business in one part of the country can see a different average unit rate to an identical business elsewhere, even before supplier margin is considered.

How averages move over time

Because wholesale gas and electricity prices fluctuate with global supply and demand, average business energy prices are not static. Averages calculated during a period of high wholesale prices will be noticeably higher than averages calculated when the market has eased, which is why any published average should include the date or period it reflects.

Using averages sensibly

Averages are useful for a general sense-check on a quote, but they are not a substitute for comparing live quotes for your own consumption, region and contract length. A quote significantly above the relevant average range is worth querying with the supplier or checking against alternative offers.

Average Business Energy Prices: frequently asked questions

Related business energy pages

Business Energy PricesAn overview of current UK business energy prices, covering electricity and gas unit rates, standing charges and how contract type affects cost.Small Business Energy PricesSmall business energy prices depend on annual consumption, meter type, region and contract length rather than headcount alone.Large Business EnergyLarge business energy customers typically use half-hourly metering and can access flexible purchasing arrangements not available to smaller sites.Business Electricity RatesBusiness electricity rates combine a unit rate, which may be time-banded, with a standing charge and, for larger sites, a separate capacity charge.Business Gas RatesBusiness gas rates are priced per kWh within consumption bands, with unit rates generally falling as annual usage rises, alongside a daily standing charge.SME Business EnergySME energy pricing spans a wide consumption range, from small offices to multi-site operations, and depends heavily on contract structure.