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Industry guide

Business Energy Prices for Manufacturing

Manufacturing energy prices vary widely by process type, but are generally driven by machinery power draw, shift patterns and, in many facilities, process heat or steam requirements. A small manufacturing unit may use 100,000 to 300,000 kWh of electricity a year, while process-heavy facilities running multiple shifts can use well over 1,000,000 kWh alongside significant gas consumption.

Because production machinery often represents fixed, high-capacity electrical demand, manufacturers are more exposed than most sectors to capacity charges and time-of-use pricing, making load profile analysis particularly important when comparing quotes.

Compare Market works with manufacturers to review consumption data, shift patterns and process requirements before comparing electricity and gas contracts across the market, including half-hourly settlement arrangements common at this scale.

  • Consumption ranges from 100,000 kWh for small units to several million kWh for large multi-shift plants
  • Machinery power draw and shift patterns are the dominant cost drivers
  • Process heat, drying or steam requirements can push gas usage above electricity
  • Most manufacturing sites are on half-hourly electricity settlement
  • Capacity and time-of-use charges are more significant than in many other sectors
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Typical manufacturing energy consumption

Consumption depends heavily on the manufacturing process, machinery age and number of shifts run per day. Light assembly work differs substantially from heat-intensive processes such as metalworking or food production.

Facility scaleElectricity (kWh/yr)Gas (kWh/yr)
Small unit, single shift100,000 - 300,00050,000 - 200,000
Medium plant, double shift300,000 - 1,000,000200,000 - 800,000
Large plant, continuous shifts1,000,000 - 5,000,000+800,000 - 4,000,000+
Indicative annual consumption by manufacturing scale Ranges are highly process-dependent and indicative only.

What drives the cost

  • Production machinery and motors running across shift patterns
  • Process heat, drying, curing or steam generation
  • Compressed air systems, often a significant and sometimes overlooked electricity load
  • Ventilation and extraction for process safety and air quality
  • Lighting across large factory floor areas

Gas versus electricity split

Facilities relying on process heat, such as drying, curing or steam-based operations, often see gas consumption match or exceed electricity. Facilities driven mainly by mechanical or electrical machinery without significant heat processes tend to be electricity-dominant.

Shift patterns and peak exposure

Single-shift operations concentrate demand into daytime hours, increasing exposure to daytime peak rates. Multi-shift or continuous operations spread demand more evenly across the day, which can reduce relative exposure to peak charges but increases total annual consumption and capacity requirements.

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Half-hourly metering and capacity charges

Most manufacturing sites of meaningful scale are on half-hourly electricity settlement, which exposes them directly to time-of-use pricing and capacity charges based on maximum demand. Reviewing agreed supply capacity against actual peak demand can identify savings where capacity is set higher than required.

Contract length and renewal timing

Manufacturers often fix for 1 to 3 years, balancing budget certainty against the flexibility to respond to changing production volumes. Given the scale of consumption, renewal comparisons should begin 4 to 6 months ahead of contract expiry to allow time for detailed supplier tendering.

How to compare manufacturing energy prices

  • Provide half-hourly consumption data where available for accurate quoting
  • Review agreed supply capacity against actual recorded maximum demand
  • Separate process gas usage from space heating gas usage if possible
  • Consider flexible or bespoke contract structures for larger, complex sites

Manufacturing: frequently asked questions

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