Whole of market energy comparison0141 628 9442

Industry guide

Business Energy Prices for Cold Storage

Cold storage energy prices are dominated by continuous electricity consumption from refrigeration and freezing plant, since maintaining temperature is a 24-hour, year-round requirement regardless of trading activity. A mid-size chilled or frozen storage facility can use 500,000 to 2,000,000 kWh of electricity a year, substantially more than an equivalent ambient warehouse, with gas usage typically minimal outside office or staff welfare areas.

Because refrigeration plant must run continuously to maintain product safety, cold storage has one of the flattest and highest baseline electricity demand profiles of any commercial sector, with limited scope to reduce consumption outside of efficiency improvements to plant and building insulation.

Compare Market compares cold storage energy contracts against storage temperature band, facility size and refrigeration plant type, ensuring quotes reflect the sector's continuous, high-volume electricity demand rather than standard warehouse assumptions.

  • Typical electricity use: 500,000 to 2,000,000+ kWh a year depending on temperature band and size
  • Refrigeration and freezing plant run continuously, creating a high, flat demand profile
  • Frozen storage uses substantially more electricity than chilled storage at the same volume
  • Gas usage is minimal, generally limited to office or welfare area heating
  • Almost all cold storage sites of meaningful scale are on half-hourly electricity settlement
Step 1 of 40%

What's your business postcode?

We use this to match you with local pricing.

Typical cold storage energy consumption

Consumption depends heavily on temperature band, with frozen storage below minus 18 degrees requiring considerably more energy per cubic metre than chilled storage typically held between 0 and 5 degrees.

Facility typeElectricity (kWh/yr)Gas (kWh/yr)
Small chilled storage unit150,000 - 400,0000 - 20,000
Medium chilled/frozen mixed facility400,000 - 1,200,0000 - 40,000
Large frozen distribution centre1,200,000 - 3,000,000+0 - 60,000
Indicative annual consumption by cold storage type Gas figures reflect minimal office or welfare heating only; core refrigeration is electric.

What drives the cost

  • Compressor plant maintaining chilled or frozen temperature continuously
  • Building insulation quality, which directly affects how hard refrigeration plant must work
  • Door openings and loading bay activity, which introduce warm air requiring re-cooling
  • Defrost cycles on freezer units, which use additional energy periodically
  • Backup power and monitoring systems required to protect stored product

Temperature band and consumption impact

Frozen storage typically uses noticeably more electricity per cubic metre of storage space than chilled storage, since maintaining sub-zero temperatures against ambient heat gain requires significantly more compressor work. Facilities with mixed chilled and frozen sections should have consumption assessed by zone where possible.

Continuous flat demand profile

Refrigeration plant does not switch off outside trading hours, meaning cold storage facilities show one of the flattest demand profiles of any commercial sector, with limited daily variation compared with sectors driven by occupancy or trading hours.

Compare business energy prices

Enter your postcode and business details to compare available commercial energy prices.

Standing charges and half-hourly metering

Given the scale and consistency of demand, almost all cold storage facilities beyond the smallest units are on half-hourly electricity settlement, and standing charges are typically higher than for an equivalent ambient warehouse, reflecting the substantial connection capacity required.

Contract length and renewal timing

One to three year fixed contracts are common, with some larger operators using longer terms or flexible purchasing to manage exposure to wholesale price movements given the scale of consumption involved. Renewal comparisons should begin 4 to 6 months ahead of contract expiry.

How to compare cold storage energy prices

  • Provide half-hourly consumption data broken down by temperature zone if available
  • Confirm insulation standard and age of refrigeration plant
  • Check standing charge and capacity requirements given continuous high demand
  • Consider flexible purchasing arrangements for very large or multi-site operators

Cold Storage: frequently asked questions

Related business energy pages

Check cold storage against the whole market

One short form, leading UK business energy suppliers compared and a written summary of your options from a specialist.