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Business energy prices

What UK businesses pay for electricity and gas per kWh

The figures on this page are for April to June 2026 and were published on 29 September 2026. The next update is due on 17 December 2026.

Between April and June 2026, UK businesses paid an average of 24.51p per kWh for electricity and 5.28p per kWh for gas. These are the government's figures, which include the Climate Change Levy but not VAT. The smallest businesses paid the most for each kWh.

A café owner working out his costs with a calculator after closing

Every quarter, the Department for Energy Security and Net Zero surveys energy suppliers and publishes what businesses across the UK pay for their energy. Because the figures cover the whole bill except VAT, you can compare them with what you pay. Find the band that matches your yearly use below.

Most businesses pay the levy, but charities using energy for non-business purposes and residential accommodation such as care homes usually don't. Hotels and guest houses still pay it.

Business electricity prices per kWh

Size bandYearly use (approx.)Apr to Jun 2026 (provisional)Apr to Jun 2025
Very smallUp to 20,000 kWh38.36p37.07p
Small20,000 to 500,000 kWh28.59p28.63p
Small/medium500,000 to 2 million kWh27.67p27.67p
Medium2 million to 20 million kWh25.17p25.81p
Large20 million to 70 million kWh24.42p24.56p
Very large70 million to 150 million kWh22.70p21.86p
Extra largeOver 150 million kWh22.25p20.97p
Average, all businesses24.51p24.03p

Business gas prices per kWh

Size bandYearly use (approx.)Apr to Jun 2026 (provisional)Apr to Jun 2025
Very smallUp to 278,000 kWh9.31p8.78p
Small278,000 to 2.78 million kWh4.86p5.09p
Medium2.78 million to 27.8 million kWh4.20p4.50p
Large27.8 million to 278 million kWh3.83p4.06p
Very large278 million to 1.1 billion kWh3.97p4.28p
Average, all businesses5.28p5.31p

Prices in pence per kWh, including the Climate Change Levy, excluding VAT. Size bands are the government's, converted from MWh. Figures for the latest quarter are provisional and may be revised. Source: Department for Energy Security and Net Zero, table 3.4.2, published 29 September 2026.

How to work out your own price per kWh

To compare like with like, work out your own price from the whole bill before VAT:

  1. Take a year of bills if you can. One bill will do, but a year gives a fairer figure, because the standing charge makes up more of the bill in months when you use less.
  2. Add up the totals before VAT. That means everything on the bill: unit charges, standing charges, the Climate Change Levy and any other charges.
  3. Divide by the kWh the bills cover, then multiply by 100 to get a figure in pence.
  4. Compare the result with your band in the table above.

Your price per kWh (p) = (total before VAT in £ ÷ kWh used) × 100

Or use our energy cost calculator to work it out.

Why your price may be different

These are averages, so plenty of businesses pay more and plenty pay less. Here are the main reasons why:

  • Your size. When you use less, fixed costs such as standing charges are spread over fewer kWh, so smaller businesses pay more for each one.
  • When you agreed your price. A fixed contract locks in the prices from when you signed, so two businesses of the same size can pay very different prices.
  • Deemed or out-of-contract rates. These are what you pay when no contract is in place, and they're usually higher than the prices you'd get on a contract.
  • Where you are and your meter. Network charges vary from region to region, and larger sites with half-hourly meters are charged in a different way.
  • Your contract type. Some contracts pass network and other costs straight on to you whenever they change.

If your price comes out well above the average for your band, it's worth finding out why.

See how your own rates compare. Our free check compares your rates, standing charges and contract terms with today's market. A specialist will then ring to talk you through it, with no obligation.

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How prices have moved since 2019

Business energy prices started rising sharply in late 2021 and peaked in 2023. They've eased since then, though they've edged up again over the last few quarters, and they're still well above where they were in 2019.

Electricity, average price per kWh

Electricity, average price per kWh: 12.90p in January to March 2019, 24.51p in April to June 2026.0p5p10p15p20p25p30p201920202021202220232024202512.90p24.51p
Show the figures
QuarterAverage price per kWh
January to March 201912.90p
April to June 201912.30p
July to September 201912.40p
October to December 201913.96p
January to March 202014.30p
April to June 202013.39p
July to September 202012.88p
October to December 202014.25p
January to March 202114.81p
April to June 202113.58p
July to September 202113.91p
October to December 202117.73p
January to March 202218.14p
April to June 202219.33p
July to September 202222.20p
October to December 202224.80p
January to March 202325.37p
April to June 202326.88p
July to September 202328.32p
October to December 202328.39p
January to March 202427.84p
April to June 202425.99p
July to September 202425.67p
October to December 202425.35p
January to March 202525.74p
April to June 202524.03p
July to September 202523.35p
October to December 202523.99p
January to March 202624.14p
April to June 202624.51p

Gas, average price per kWh

Gas, average price per kWh: 2.57p in January to March 2019, 5.28p in April to June 2026.0p2p4p6p8p20192020202120222023202420252.57p5.28p
Show the figures
QuarterAverage price per kWh
January to March 20192.57p
April to June 20192.45p
July to September 20192.38p
October to December 20192.49p
January to March 20202.59p
April to June 20202.37p
July to September 20202.33p
October to December 20202.48p
January to March 20212.50p
April to June 20212.59p
July to September 20213.08p
October to December 20214.18p
January to March 20224.17p
April to June 20225.00p
July to September 20226.74p
October to December 20226.03p
January to March 20237.18p
April to June 20236.12p
July to September 20235.94p
October to December 20236.40p
January to March 20246.12p
April to June 20245.42p
July to September 20245.35p
October to December 20245.51p
January to March 20255.54p
April to June 20255.31p
July to September 20255.13p
October to December 20255.07p
January to March 20265.16p
April to June 20265.28p

Average for all businesses, including the Climate Change Levy, excluding VAT. Source: Department for Energy Security and Net Zero, table 3.4.2.

What the figures include

  • The whole bill except VAT. The government describes them as fully delivered prices, so they include standing charges, network charges and the supplier's charges, spread across every kWh.
  • The Climate Change Levy, unless you choose to show the figures without it.
  • All kinds of businesses across the UK, taken from a survey of energy suppliers.
  • An average for each size band, worked out by dividing the total paid by the total kWh bought.

The government notes that the figures for very small electricity users have been revised since late 2024, and they may be revised again.

Questions about business energy prices

What is the average business electricity price per kWh?

UK businesses paid an average of 24.51p per kWh for electricity in April to June 2026, including the Climate Change Levy but not VAT. The smallest businesses, using up to 20,000 kWh a year, paid 38.36p.

What is the average business gas price per kWh?

UK businesses paid an average of 5.28p per kWh for gas in April to June 2026, including the Climate Change Levy but not VAT. The smallest businesses, using up to 278,000 kWh a year, paid 9.31p.

Why do small businesses pay more per kWh?

Because fixed costs, such as standing charges, are spread over fewer kWh when a business uses less energy, each kWh ends up costing more.

Do these prices include standing charges?

Yes. They cover the whole bill except VAT, spread across every kWh, which means you can compare them with your own total cost per kWh.

How often are the figures updated?

Every quarter. The next update is due on 17 December 2026, and we'll update this page soon after that.

Where do the figures come from?

From the Department for Energy Security and Net Zero, which surveys energy suppliers every quarter. You'll find them in its tables 3.4.1 and 3.4.2.

Sources

Contains public sector information licensed under the Open Government Licence v3.0.

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