What Is the Average Business Energy Consumption for Different Industries?

Understanding the average business energy consumption is a smart move for companies looking to manage costs and reduce their carbon footprint. With prices rising and pressure mounting to be more sustainable, knowing how much energy different types of businesses use can help you spot savings and secure a better deal.

In this article, we look at the typical usage for different types of business for gas and electricity and the other elements that make up commercial energy bills, such as standing charges and VAT.

What Makes Up a Business Energy Bill?

Your business energy bill isn’t just about how much gas or electricity you use. There are a few extra charges to know about:

• Unit rates: This is what you pay per kilowatt-hour (kWh) for the energy you use.

• Standing charge: A fixed daily cost that covers maintaining the network and supplying energy to your premises.

• VAT: Most businesses pay 20%, but if you use less than a certain amount, you might qualify for the reduced 5% rate.

• Climate Change Levy (CCL): A government tax applied to most business energy users, unless your business is exempt.

Take a look at our business energy bill guide to find out more.

To get a clear picture of your energy use and where you might be overpaying, it's worth doing a quick business energy audit and reading our guide to business electricity standing charges to highlight wasted energy and help lower your bills.

Average Business Electricity Usage by Industry

Electricity usage depends on your industry, business size, the type of equipment you use, and how long you're open each day.

Here’s what usage might look like for different types of business:

• Small office - 5,000 to 15,000 kWh per year

• Retail shop - 10,000 to 30,000 kWh

• Restaurant or pub - 30,000 to 50,000+ kWh

• Manufacturer or industrial site - 100,000+ kWh

Most workplaces use electricity for lighting, heating, cooling, refrigeration, computers and appliances.

Take a look at the most common uses of business electricity to see where your business could cut back.

What Affects Your Business Energy Consumption?

There’s no one-size-fits-all when it comes to energy usage. A few common factors play a big part:

• Opening hours: The longer your business is open, the more power you’ll use.

• Equipment: Ovens, chillers, and heavy machinery can eat up energy.

• Team size: More people on-site means more devices, lighting, and heating.

• Seasons: Energy usage usually spikes in colder months due to heating needs.

• Insulation: Poorly insulated buildings lose heat fast, pushing bills up.

Not sure how your business measures up? A business energy audit can help you pinpoint the problem areas and make quick fixes.

Why Understanding Your Usage Can Save You Money

If you don’t know how much energy you use, you won’t know if you’re paying too much. Comparing your usage to other similar businesses helps you:

• Spot opportunities to save: Your bills might be higher than they should be.

• Choose a better tariff for your business needs: Picking a deal that matches how and when you use energy can lower costs.

• Reduce waste: Spotting inefficient systems means you can cut down on what you don’t need.

Common Energy Mistakes That Cost Businesses More

Even savvy business owners can end up overpaying for energy without realising. Here are a few pitfalls to watch out for:

• Letting your contract roll over: If you don’t switch or renegotiate before your deal ends, you’ll usually be moved to a more expensive default tariff, sometimes known as a deemed contract.

• Not using real usage data: Estimating your energy needs when comparing suppliers could mean picking a plan that doesn’t suit your actual consumption.

• Focusing only on unit rates: A low unit rate might seem like a good deal, but high standing charges or other unexpected fees could make it more expensive overall.

• Assuming all suppliers are the same: Pricing, customer service and green credentials can vary greatly with energy suppliers. It’s worth checking reviews or using a trusted business energy comparison site.

Avoiding these traps means you’re more likely to get a deal that saves you money - not just now, but in the long run too.

Quick Wins to Cut Business Energy Costs

If you're looking to lower your energy bills without making big changes, there are a few simple steps most businesses can take:

• Switch to LED lighting: These have been found to use up to 80% less energy than traditional bulbs and last longer, so you’ll save on replacements too.

• Use timers or smart controls: Set heating, lighting and machinery to switch off automatically when not needed.

• Unplug overnight: Devices left on standby still draw power. Shutting down equipment at the end of the day can make a surprising difference.

• Improve insulation: Even small steps like draught-proofing doors and windows can reduce the amount of energy needed to heat or cool your workspace.

• Encourage staff habits: Simple things like turning off lights in unused rooms or only boiling what’s needed in the office kettle can all add up.

None of these changes need a big spend, but they could lead to long-term savings and help lower your carbon footprint. If you’re planning for the future, it’s worth exploring how renewable energy could support your sustainability goals and benefit your business. There may even be support available to help you make greener changes - check out our guide to green energy business grants.

Lots of businesses end up paying more than they need to. Switching suppliers is one of the quickest ways to bring those bills down, and at BusinessComparison, we make it easy to find the right deal for your business needs.

How to Compare Business Energy Deals Based on Your Usage

When it’s time to switch, a bit of prep can go a long way. Here’s how to compare like a pro:

• Get your usage data: The more accurate your recent usage information, the better the quote will be at predicting future costs.

• Fixed vs. variable rates: Fixed rates offer price certainty; variable ones move with the market.

• Switch at the right time: Leaving it too late can put you on a costly out-of-contract rate.

If your business uses a lot of electricity, you might need a half-hourly meter, which provides more accurate billing and better data insights.

Business energy use isn’t one-size-fits-all. It changes depending on your industry, how big your premises are, what equipment you run, and even how well-insulated your building is.

Once you know your actual usage, you can make smarter decisions – whether that’s spotting energy waste, switching tariffs, or negotiating a better deal.

Having access to your accurate usage data gives you the upper hand when comparing business energy suppliers. It means you’re not just guessing - you’re choosing a deal that genuinely fits how your business runs day to day.

The good news? You don’t have to do it alone. BusinessComparison is here to help you find the most competitive rates, simplify the switching process, and start saving money faster. Using our handy comparison tool takes the hassle out of switching. We’ll show you the best deals available from our panel of trusted suppliers.