How much should a business pay for energy?
It depends on your usage and contract, so compare rates rather than totals. DESNZ's Q2 2026 non-domestic averages were 24.51p/kWh for electricity and 5.28p/kWh for gas including levy. Divide your bill by your kWh, then check it against fresh quotes for the same usage.
There is no single right amount, because it depends on how much you use, where you are, your contract and your meter. What you can check is whether your rates are in a reasonable range, and whether you are paying a default rate you could avoid.
Benchmarks for rates
| Source | Electricity | Gas |
|---|---|---|
| DESNZ Quarterly Energy Prices, Q2 2026, all non-domestic, incl. CCL | 24.51p/kWh | 5.28p/kWh |
| MoneySuperMarket Business, October 2026, micro fixed average (indicative) | 28.4p/kWh plus 58.0p/day | 8.8p/kWh plus 44.9p/day |
| MoneySuperMarket Business, October 2026, out of contract | 40.0p/kWh plus 254.0p/day | 12.0p/kWh plus 338.0p/day |
The DESNZ figure is an official average across all sizes, and it does not include standing charges. The comparison-site figures are indicative, and that page contains some internal inconsistencies, so treat them as a rough guide only. Standing charges in particular vary widely by region, meter type and supplier, so we do not give a single benchmark for them; compare the standing charge on each quote you get instead. Averages also lag the market.
A three-step check
- Find your effective rate. Divide your total bill by your kWh. Example: £3,900 ÷ 12,000 kWh = 32.5p/kWh, which includes standing charge, CCL and VAT.
- Strip out VAT if you reclaim it. £3,900 ÷ 1.2 = £3,250, or 27.1p/kWh.
- Compare like with like. Check the rate against a fresh quote with the same usage and meter.
See how to calculate your annual cost if you want to rebuild a bill from the rates.
Signs you are paying too much
- You are on a deemed or out-of-contract rate. Check with our out-of-contract cost calculator.
- Your contract rolled over without a fresh comparison.
- Your bills are estimated and your usage is overstated.
- You pay for capacity you do not use. See supply capacity charges.
- Your quote includes a broker fee you have not looked at. See broker commission.
The mistake to avoid
Choosing the lowest unit rate alone can backfire if the standing charge or exit terms are poor. Our page on whether the cheapest deal is the best goes through the trade-offs.
There is no Ofgem price cap on business energy and no cooling-off period once you agree a contract, so check before you sign.
Why one number never fits
Two shops with identical turnover can have very different bills. One has a chiller and electric heating, another uses a few lights and a till. One is in a high-cost network area, the other is not. One signed a good deal when prices were low, the other rolled onto a default rate. That is why we suggest comparing rates and structure rather than chasing an average total. Where you can, ask a few suppliers or an independent adviser for a quote on the same basis, and ask each what they are paid, as covered in how to find out what your broker is paid. Then check the end date, exit terms and renewal process before you commit, since a good rate on a bad contract is rarely a bargain.
Next steps
Find out more in average business energy bills, and then get quotes using the guidance in comparing business energy.
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.