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Average Business Energy Prices - Average Gas And Electricity Bills Explained

Is your business overpaying for its gas and electricity? If you do not regularly switch tariffs, you are likely paying too much.

In times of rising energy costs, it can be difficult to know when is the right time to switch your business gas and electricity suppliers. Many companies think of energy as fixed costs, but pay little attention to the bills going out. 

It may be time to start paying attention to your energy bills as you may have rolled onto an expensive out-of-contract tariff. 

In 2022, we’re all well aware of the surging energy prices, but what does this mean for businesses, are business energy prices increasing and how do you know if you’re paying too much? 

We’ll breakdown everything down in this helpful business energy guide and how you can compare business energy prices and still manage your energy costs in a volatile market. 

What Is The Average Business Energy Price In 2022? 

The price of business energy largely depends on the industry it operates in and the location of the premises. However, we can make some general assumptions based on average Government figures and business sizes to offer general guidance. For the most accurate business energy quotes, you should compare business energy prices. It takes only 60 seconds to view a range of prices through our innovative comparison engine. 

In the meantime, here are the average business energy prices based on business size for Q1 of 2022.

Size of Business

Gas Price Per kWh

Electricity Price Per kWh

Micro Business (under 10 employees)

20.06p 5.40p

Small Business

20.57p 3.64p

Medium Business

18.06p 4.22p

Large Business

18.00p 3.70p


18.39p 4.18p

Prices are for Q1 of 2022 according to the UK Government.

Are Business Energy Prices Protected By The Ofgem Price Cap? 

Ofgem’s energy price cap is a tool used to protect home energy customers and does not apply to businesses. 

The wholesale market is still impacting businesses, but energy suppliers are still offering competitive energy tariffs considering market conditions. Businesses would be wise to review projected wholesale energy prices and regularly compare business energy prices. 


In some circumstances, it may be beneficial to fix a business energy tariff before wholesale prices increase further and review options when it comes to the renewal date. 

At Love Energy Savings, we use our industry knowledge and strong relationships with energy suppliers to offer you the best deals on the market and reduce your business energy bills. In these times of market uncertainty, many businesses are looking to save on their renewals against projected price increases. 

The cost of commercial electricity and business gas depends on several factors, including: 

  • The size of your business.
  • Where your business is based.
  • How many people you employ.
  • Which sector you operate in 

What Is The Average Small Business Energy Bill?

In the eyes of an energy supplier, there are two types of small businesses; a micro business and an SME. 

A micro business is officially a company with between one and nine employees. They make up more than 96% of all businesses. In 2021, there were 5.7 million registered micro businesses.

Microbusinesses use less energy than larger companies, which means they pay higher unit rates. The more energy you consume, the better unit rate you can negotiate. 

In Q1 of 2022, the average unit rate for a micro business was 20.06 pence per kWh for electricity and 5.40 pence per kWh for gas usage.

That means that during a year, assuming electricity consumption of 8,000 kWh, the average micro business would spend £1,705 each year on energy bills with a daily standing charge of 27.4p. 

A small business is defined as a company with between ten and forty-nine employees. In 2021, there were over 200,000 companies in this category.

The average small business unit rates for Q1 of 2022 was 20.57 pence per kWh for electricity and 3.64 pence per kWh for gas.

Again, if we assume an annual consumption of 20,000 kWh of electricity for small businesses, the annual bill would come to £4,212. Remember that you may need to pay CCL (climate change levy) and standing charges. 

What Is The Average Medium-Sized Business Energy Bill?

Currently, there are approximately 36,000 medium-sized businesses in the UK. These are companies with between fifty and two hundred and fifty members of staff. Companies of this size could access rates of 18.06p pence per kWh for electricity and 4.22 pence per kWh for gas in Q1 of 2022.

Inevitably there is a huge amount of range in the energy of consumption of medium-sized companies. Some may be energy-intensive factories or workshops. Others may be offices with relatively less consumption. The variability can be considerable.

Nevertheless, assuming an average consumption of 75,000 kWh of electricity per year, a typical company would be paying £7,320 for electricity annually. 

What Is The Average Large Business Energy Bill?

Large businesses are those with over two hundred and fifty staff. There are nearly 8,000 companies of this size in the UK. In general, this bracket of companies can access the lowest available unit rates. Due to the high energy consumption these businesses generate, a large business should get specialist advice from an energy broker like Love Energy Savings before switching.

Figures from Q1 of 2022 show the average electricity unit rates for this class of business are 18 pence per kWh for electricity and 3.70 pence per kWh for gas.

If we imagine a company of this size generating 80,000 kWh of electricity during a year, their commercial electricity bill would be £14,496 each year. This is without a Climate Change Leby charge. 

My bills are less than the average company of our size – should we switch?

Don’t forget the average business energy bills are not the cheapest available. As a rule of thumb, if you haven’t switched in the last year, your bills could be cheaper. We want to encourage companies to think of an annual energy switch as routine as annual accounts.

By switching suppliers, you can compare the latest deals from a wide range of energy suppliers. 

Love Energy Savings have an experienced and friendly business team to help you find the best energy deals. We know all companies are unique – so we set out to meet your exact requirements. 

Our energy experts can advise you on:

  • Energy tariffs – including green and fixed-rate contracts
  • Half hourly meters
  • Multi-site meters
  • Energy management

How can I reduce my business energy bills?

The easiest and quickest way to reduce your commercial energy bills is to switch to a better deal. However, many companies are reluctant to switch their energy supplier. This is a mistake – switching to a cheaper energy tariff can save you hundreds of pounds a year, or even more.

Another way you can reduce your energy bills is to ensure that your operations are as energy-efficient as possible.

Why switch business energy tariff?

Many companies have a poor impression of the process of switching to a new commercial energy contract or supplier. The perception is that it will be slow, complicated or overly administrative, and may even end up costing more in time and money than it is worth.

At Love Energy Savings, we can handle your switching process. We handle all the communication with both your old and new supplier. We don’t charge for our service. We simply find you the best deal to match your company’s needs. 

Let’s tackle those misconceptions about switching energy supplier.


Comparing the different tariffs from all the UK’s energy suppliers would take a long time. But Love Energy Savings can find your company the cheapest deal on the market in seconds.

Although it does take a few weeks to finalise your switch, we handle all the back work so you can sit back and wait to benefit from cheaper bills.

Complicated and too much admin

When you switch with Love Energy Savings, we handle all the administration. All you need to do is let us know your requirements and we do the rest. Simple.

Not worth the time and money

Businesses that are on the most expensive variable tariff rates could be paying as much as 80% more than the best rates on the market. That means a considerable saving over a year of hundreds or even thousands of pounds.

To find out how much you can save with Love Energy Savings, simply compare the latest business energy prices.


Compare Business Energy

Related Articles


  • What is kWh (kilowatt hour)?

    kWh is a unit of measurement used by energy suppliers to measure how much gas and electricity you use per hour. There is a cost attributed to this so that your supplier can accurately bill you for usage.

  • What are MPAN and MPRN numbers?

    Your MPAN and MPRN numbers are unique identifiers attributed to meters at your property. Each meter has a different one and this allows suppliers to ensure they are billing the property for energy usage. The number is 6-10 digits and can usually be found every energy bill. 

  • Can I get a better deal on my business energy?

    It is hard to negotiate a better deal with business energy suppliers. However, our team will always negotiate the best price for your business, and in 99% of cases, we will ensure that it is cheaper than your renewal.

    To find out how much you can save, complete our online energy comparison form.

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