Average business energy rates by business size

Two meanings of "size"

Size is used in two ways, and it helps to separate them before looking at numbers.

• Regulatory size decides your protections. A microbusiness has fewer than 10 employees and turnover or balance sheet of no more than €2 million, or uses under 100,000 kWh of electricity or 293,000 kWh of gas a year. A small business has fewer than 50 employees and turnover up to £6.5m or balance sheet up to £5m, or uses up to 200,000 kWh of electricity or 500,000 kWh of gas. See what is a microbusiness.
• Pricing size is how suppliers and comparison sites band customers by annual kWh. Each publisher sets its own bands, and the sources below do not all state theirs, so a "small" in a price table may not match your regulatory status. Use the tables for the shape of costs, not to decide which rules protect you.

Official benchmark

The government's Quarterly Energy Prices (September 2026) gives a non-domestic average for April to June 2026 of 24.51p/kWh for electricity and 5.28p/kWh for gas, both including the Climate Change Levy. It is one blended average, so it does not show differences by size. Source: DESNZ.

Indicative new fixed deals, October 2026

Published by Moneysupermarket Business on 21 October 2026 (a commercial site; its page has internal inconsistencies, so treat as a guide):

Size	Electricity unit rate	Electricity standing charge	Gas unit rate	Gas standing charge
Micro	28.4p	58.0p/day	8.8p	44.9p/day
Small	27.2p	118.9p/day	8.5p	49.5p/day
Medium	27.7p	90.1p/day	8.7p	67.3p/day
Large	26.1p	173.0p/day	8.6p	61.8p/day

Aquaswitch, another commercial source, reported August 2026 one-year fixed electricity at 27.2p for small users, 25.2p for medium and 25.0p for large. Differences between sources show how much rates depend on timing and the supplier mix behind each publisher's average.

Two points stand out. The unit rate falls only a little as you get bigger: 28.4p for micro to 26.1p for large is 2.3p. The standing charge, by contrast, is about three times higher for large (173.0p versus 58.0p). The tiny user is most exposed to fixed daily costs, while the large user is exposed to wholesale and non-energy charges.

Worked example: how size changes the bill

A micro firm: 10,000 kWh of electricity

• Units: 10,000 × £0.284 = £2,840.00
• Standing: 365 × £0.58 = £211.70
• Total before CCL and VAT: £3,051.70, an effective 30.5p/kWh. Standing charge is 6.9% of the bill (211.70 ÷ 3,051.70).

A small firm: 60,000 kWh of electricity

• Units: 60,000 × £0.272 = £16,320.00
• Standing: 365 × £1.189 = £433.99
• Total: £16,753.99, an effective 27.9p/kWh. Standing charge is 2.6% of the bill.

Small gas: 150,000 kWh

• Units: 150,000 × £0.085 = £12,750.00
• Standing: 365 × £0.495 = £180.68
• Total: £12,930.68.

The lesson: if you are very small, a lower standing charge may be worth more than a slightly lower unit rate. If you are larger, the unit rate and non-energy charges dominate. Run your own sums with the business energy cost calculator.

What else changes with size

• Meter type. Larger sites tend to be on half-hourly meters and different profile classes; see profile classes explained.
• Charges. Large sites often face capacity charges; see supply capacity.
• Contract flexibility. Bigger users can use flexible or tracker deals; see fixed vs flexible.
• Protections. Broker fee disclosure now covers all non-domestic customers, but backbilling limits and the notice rules for out-of-contract deals are for microbusinesses.
• Multi-site. See multi-site and large business energy.

When a low standing charge beats a low unit rate

Because the size bands pair different unit rates with very different standing charges, it helps to work out the break-even usage between two offers. Take the micro and small electricity averages from the table as if they were two quotes you had been given:

• Offer A: 28.4p/kWh and 58.0p/day. Offer B: 27.2p/kWh and 118.9p/day.
• Extra standing charge on B over a year: 365 × (£1.189 − £0.580) = 365 × £0.609 = £222.29.
• Unit-rate saving on B: £0.284 − £0.272 = £0.012 per kWh.
• Break-even: £222.29 ÷ £0.012 = about 18,524 kWh a year.

Below roughly 18,500 kWh a year, offer A is cheaper; above it, offer B wins. A small shop using 8,000 kWh would pay £2,483.70 on A (8,000 × £0.284 + 365 × £0.58 = £2,272.00 + £211.70) against £2,609.99 on B (8,000 × £0.272 + 365 × £1.189 = £2,176.00 + £433.99), so the "cheaper" unit rate costs it £126.29 more. Do this sum whenever two quotes trade a lower unit rate for a higher standing charge.

What to ask for in a quote, whatever your size

1. The unit rate and standing charge for each meter, written separately, and whether the Climate Change Levy is included.
2. The annual usage figure the supplier has assumed. A quote built on the wrong kWh produces the wrong annual cost.
3. Which network and policy charges are fixed for the term and which can be passed through if they change.
4. Any broker cost shown in pounds and pence for the whole term, as the Principal Terms must now set out.
5. The contract end date and what happens at renewal if you do nothing.

Larger users should also ask about capacity (kVA) charges and half-hourly data. Smaller users should check whether a "no standing charge" product simply moves the cost into a higher unit rate.

Where does your business sit?

Check your last 12 months of kWh on a bill. Under 100,000 kWh electricity or 293,000 kWh gas generally puts you in the microbusiness group for that fuel, and microbusiness status can differ between gas and electricity. For typical use see how much electricity a small business uses and the average business energy bill.

Using these numbers sensibly

• They are averages of what others were offered, not what you will get.
• Rates exclude CCL (0.801p/kWh from 1 April 2026) and VAT, so check how a quote is presented.
• Prices change; this page is dated 6 November 2026 and will age.

Next steps

1. Note your annual kWh for gas and electricity.
2. Work out which size bracket you are in.
3. Compare quotes on total annual cost; see electricity prices per kWh and gas prices per kWh.

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