What is the average energy consumption for different UK businesses?
Although most businesses use between 15,000 and 25,000 kWh of energy a year, the average usage and cost of energy will differ depending on the size of the business, industry and how it uses energy.
Energy prices have been unusually volatile over the last few years, which has caused huge differences in the rates suppliers quoted. Prices began to drop steadily from December 2022 and levelled off across 2023. Prices remained relatively steady across 2025 but are still markedly higher than before the pandemic.
This means it's as important as ever to understand and manage your gas and electricity usage.
Let's look at how much energy a business like yours uses on average and the rates they might pay, along with some ways to help you cut costs.
Five-point summary on average energy consumption for UK businesses
Most UK businesses use between 10,000 kWh and 65,000+ kWh of gas and electricity a year, with micro, small, medium and large firms all falling into clear Ofgem and market benchmark ranges.
- Your actual energy usage depends on business size, sector, opening hours, equipment, building efficiency, location and how seriously you take energy‑saving measures.
- High‑consumption industries include pharma manufacturing, metals, food production, care homes and hospitality, while services like cleaning, consultancy and small retail typically use far less energy.
- Business energy bills are driven by two key elements – unit rates (p/kWh) and standing charges (daily pence) – plus VAT and levies, with fixed deals offering price certainty and variable tariffs tracking the wholesale market.
- UK businesses can cut usage and costs by auditing energy use, upgrading to efficient kit and lighting, using smart meters and controls, switching to better tariffs and, where possible, investing in renewables or low‑carbon tech.
How much energy does an average business use?
All businesses have different energy demands - even if two businesses seem identical, if they operate from different premises, they could have different heating, lighting and energy efficiency systems. All these things can affect the amount of energy they use.
Even having different opening times and employees with different energy usage habits can impact energy usage.
Ofgem's 2022 non-domestic business energy report found that around two-thirds of micro business owners don’t know how much gas (70%) or electricity (64%) they use each year. If this sounds like you, here are some average figures to give you an idea of roughly how much you can expect to use:
- Microbusinesses use an average of 10,000 kWh of gas and up to 15,000 kWh of electricity a year
- Small businesses use an average of 25,000 kWh of gas and up to 25,000 kWh of electricity a year
- Medium-sized businesses use an average of 45,000 kWh of gas and up to 50,000 kWh of electricity a year
- Large businesses use more than 65,000 kWh of gas and more than 50,000kWh of electricity a year
The 2024 non-domestic energy report suggests that businesses have become much more savvy about their energy usage. Perhaps out of necessity, following the 2022 price crisis. For more on that and a closer look at why energy prices change, check out our guide to what's going on with energy prices.
The 2024 Ofgem report found that 90% of businesses now monitor energy usage, usually through bills (80%) and meters (53%). Just 7% of respondents said they don't monitor their usage at all.
Larger businesses are more likely to use smart meters, and it will be interesting to see if more small businesses do this as Market-Wide Half-Hourly Settlement (MHHS) continues to roll out.
These averages are in line with recent UK market data, which shows micro businesses typically use around 10,000 kWh of electricity a year, small businesses around 20,000 to 25,000 kWh, medium businesses 25,000 to 50,000 kWh and large businesses 55,000 kWh or more.
What factors influence a business's energy usage?
Several key things influence how much energy a business uses.
First, the size and type of the business matter - a manufacturing plant will use far more energy than a small office. Equipment and technology also play a role as older, inefficient machines use more power.
Operating hours can also make a difference, as businesses running 24/7 will naturally use more energy. If this sounds like your business, you might be able to cut your bills with a time-of-use tariff.
Location and climate can impact heating and cooling needs, as can employee habits. A simple way to cut usage is to make sure employees get into the habit of switching off lights and equipment in rooms that are not in use. Making use of a thermostat timer can also help with heating and cooling costs.
Ofgem’s definitions for micro and small businesses also link to annual consumption. For example, a micro business usually uses less than 100,000 kWh of electricity or 293,000 kWh of gas a year. This can affect the contracts and protections offered by suppliers. For more information, check out our guide to small and micro business energy.
How does energy usage differ across UK industries?
Energy usage varies widely across industries based on how each business uses gas and electricity.
Manufacturing and heavy industries, like steel or chemical production, consume massive amounts of energy to power machinery, heat materials, and run continuous processes. In contrast, offices and retail stores use much less, mainly for lighting, heating, cooling, and electronics.
The transportation industry relies heavily on fuel for vehicles, while agriculture uses energy for irrigation, machinery, and refrigeration. Tech companies and data centres have high electricity demands to keep servers running 24/7.
AI uses an incredible amount of energy - in 2022, AI data centres used about 460 terawatt-hours (TWh) of electricity. This is roughly 1 to 2% of the world's electricity demand.
UK data centre energy use is rising rapidly, consuming around 2.5% of the nation's electricity. Some forecasts suggest this could reach up to four times its current level by 2023. There are also concerns over high water consumption, with some estimates suggesting substantial usage of more than 10 billion litres a year.
Each industry has unique needs, but energy efficiency measures can help reduce costs and environmental impact for all businesses.
Energy‑intensive industries like food manufacturing, basic metals, chemicals, warehousing, care homes and hospitality typically sit at the top of the business energy usage table. Services such as consultancy, creative industries and cleaning sit near the bottom.
What makes up an average commercial energy bill?
Energy usage is measured in units of kilowatt-hours (kWh). Your energy bills will vary depending on how much gas and electricity you use at your business premises.
The cost of your bills will also be affected by the type of tariff you're on, and although your business energy bill is made up of several costs, including VAT and government levies, there are two figures you need to look out for:
- Unit cost - Measured in kilowatt-hours (kWh), this is the amount you pay for each unit of gas or electricity you use.
- Standing charge - This is a flat daily rate to cover the cost of getting the energy to your property and is charged regardless of whether you use gas or electricity.
If you’re looking to cut the cost of your bills, you’ll want a tariff that offers a lower unit rate and lower standing charge than the one you’re currently on, but you might be able to lower your bills by cutting the cost of just one of these charges.
The type of deal you’re on will also affect the cost of your business energy bills, and while there is a range of commercial tariffs on offer, simply choosing between a fixed rate and a variable rate tariff can make a significant difference.
If you're on a variable-rate energy deal, the unit cost will fluctuate depending on the current market cost of energy - if prices go up, so do your energy bills, even if you consistently use the same amount of gas and electricity each month.
If you sign up for a fixed-rate deal, the unit rate is fixed, and you’ll pay a flat rate for each unit of energy you use. Fixed-rate deals offer an effective way to protect against price hikes if energy rates increase, and can also make budgeting a bit easier, but your bills will still fluctuate according to your usage.
As a sense‑check, recent 2025 data suggests a micro business using around 10,000 kWh of electricity might face an annual bill in the region of £2,700 and £2,900, while a medium user at 40,000 kWh could see bills around £11,000 a year, depending on unit rates and standing charges.
For the latest gas and electricity rates, check out our business gas comparison and business electricity comparison pages.
What is the average energy consumption for different businesses?
Ever wondered what the average electricity or gas bill would be for different businesses? Or are you starting a new business and want to find out what you can expect to pay? Here’s a breakdown of different industries and the amount of energy used in 2023 to give you a useful benchmark to compare your own kWh against similar UK businesses.
| Industry | Electricity (kWh) | Gas (kWh) | Total (kWh) |
| Pharmaceutical Manufacturing | 24,049 | 49,281 | 36,665 |
| Libraries, Archives & Museums | 12,454 | 156,249 | 28,431 |
| Basic Metal Manufacturing | 16,255 | 40,791 | 24,433 |
| Food Manufacturing | 25,682 | 16,247 | 23,166 |
| Food & Beverage Services | 17,330 | 35,471 | 22,865 |
| Waste Collection, Treatment & Disposal | 17,797 | 66,104 | 22,189 |
| Care Home Services | 16,223 | 30,510 | 20,470 |
| Hotels & B&Bs | 12,873 | 34,003 | 18,328 |
| Beverage Manufacturing | 16,199 | 16,199 | |
| Computer Repair Shops | 11,506 | 22,225 | 14,568 |
| Chemical Manufacturing | 9,932 | 34,587 | 14,283 |
| Other manufacturing | 12,368 | 20,378 | 14,227 |
| Metal manufacturing | 13,743 | 14,054 | 13,818 |
| Sports & Recreation Facilities | 11,370 | 20,477 | 13,444 |
| Legal & Accounting Services | 8,535 | 25,474 | 13,299 |
| Equipment Installation & Machinery Repair | 9,773 | 23,875 | 13,299 |
| Forestry & Logging | 11,154 | 16,690 | 12,999 |
| Electrical Equipment Manufacturing | 10,473 | 22,077 | 12,890 |
| Machinery Manufacturing n.e.c. | 13,408 | 9,122 | 12,749 |
| Retail Trading (excluding cars and motorcycles) | 11,001 | 18,798 | 12,459 |
| Office Administration & Office Support | 10,552 | 18,864 | 12,411 |
| Real Estate Services | 10,198 | 18,850 | 12,024 |
| Financial Services (excluding insurance & pensions) | 9,661 | 21,165 | 11,952 |
| Architectural & Engineering Services | 10,118 | 15,300 | 11,464 |
| Education | 8,841 | 19,316 | 11,346 |
| Computer Programming Consultancy | 11,726 | 9,157 | 11,331 |
| Travel Agencies & Tour Operators | 8,447 | 19,850 | 10,847 |
| Warehouse and transport | 8,829 | 20,631 | 10,675 |
| Landscaping and building servicing | 8,628 | 17,537 | 10,499 |
| Wholesale Trade (excluding cars and motorcycles) | 9,531 | 14,028 | 10,398 |
| Plastic and rubber manufacturing | 4,810 | 21,423 | 10,348 |
| Car, Trailer & Semi-trailer Production | 12,383 | N/A | 10,319 |
| Furniture Manufacturing | 10,124 | 10,548 | 10,218 |
| Car, Motorcycle Trade & Repair | 9,653 | 12,974 | 10,210 |
| Creative, arts, and entertainment | 6,025 | 23,140 | 10,132 |
| Specicalised Construction Services | 8,672 | 14,265 | 9,894 |
| Water Transport | 9,115 | N/A | 9,115 |
| Printing Shops | 9,285 | 5,302 | 8,547 |
| Rental and Leasing | 5,869 | 17,403 | 7,866 |
| Professional consultancy services | 7,287 | 8,269 | 7,508 |
| Vets | 7,953 | 6,155 | 7,414 |
| Wood Manufacturing | 6,656 | N/A | 6,180 |
| Waste management | 4,788 | 7,658 | 5,744 |
| Clothes/Apparel Manufacturing | 2,553 | 11,651 | 4,286 |
| Cleaning and housekeeping | 1,595 | N/A | 1,595 |
*These figures are based on usage of customers who bought energy contracts through Bionic in 2023.
What businesses use the most energy?
The type of industry you work in and the way your business uses energy will determine the amount of energy it uses each year. Here is a breakdown of the biggest energy consumers by industry.
Top industries with the highest average energy consumption
| Industry | Electricity (kWh) | Gas (kWh) | Total |
| Manufacturing of Basic Pharmaceutical Products & Preparations | 24,049 | 49,281 | 36,665 |
| Libraries, Archives & Museums | 12,454 | 156,249 | 28,431 |
| Insurance, Reinsurance & Pension Funding (except compulsory social security) | 24,785 | - | 24,785 |
| Basic Metals Manufacturing | 16,255 | 40,791 | 24,433 |
| Food Manufacturing | 25,682 | 16,247 | 23,166 |
| Food & Beverage Services | 17,330 | 35,471 | 22,865 |
| Waste Collection, Treatment, and Disposal Services | 17,797 | 66,104 | 22,189 |
| Care Home Services | 16,223 | 30,510 | 20,470 |
| Textile Manufacturing | 15,048 | 39,206 | 20,416 |
| Public Administration & Defence (compulsory social security) | 15,518 | 29,171 | 18,768 |
*These figures are based on usage of customers who bought energy contracts through Bionic in 2023.
If your usage sits well above the average for your sector, it’s worth considering a business energy audit, equipment upgrades or better controls. You should also check you’re on a suitable tariff for your profile.
Typical business energy usage by size and sector
Based on the above figures, here's a more compact breakdown of typical business energy usage by business size and sector.
| Business type or sector | Typical annual electricity (kWh) | Typical annual gas (kWh) | Total typical usage (kWh) | Notes |
| Micro business (shop, small office) | Up to 15,000 | Up to 10,000 | Up to 25,000 | Very small premises with limited equipment and standard opening hours. |
| Small business (retail, salon, small hospitality) | 15,000–25,000 | 10,000–25,000 | 25,000–50,000 | Longer opening hours and more heating, lighting and appliance use. |
| Medium business (larger office, warehouse, light manufacturing) | 25,000–50,000 | 25,000–45,000 | 50,000–95,000 | More floor space, more staff and energy‑intensive kit. |
| Large business (industrial, large hospitality, logistics) | 55,000+ | 65,000+ | 120,000+ | Continuous processes, heavy machinery or 24/7 operations. |
| Food manufacturing | ≈25,700 | ≈16,200 | ≈23,200 | High process heat, refrigeration and production loads. |
| Basic metals manufacturing | ≈16,300 | ≈40,800 | ≈24,400 | Energy‑intensive furnaces and machinery. |
| Care home services | ≈16,200 | ≈30,500 | ≈20,500 | Space heating, hot water and 24‑hour occupancy. |
| Hotels & B&Bs | ≈12,900 | ≈34,000 | ≈18,300 | Guest comfort, hot water and catering demands. |
| Legal, accounting and professional services | ≈8,500–7,300 | ≈25,500–8,300 | ≈7,500–13,300 | Mainly lighting, IT and space heating in office environments. |
| Wood manufacturing | ≈6,700 | N/A | ≈6,200 | Lower‑intensity production processes and smaller sites. |
| Cleaning and housekeeping services | ≈1,600 | N/A | ≈1,600 | Very low on‑site consumption; energy is mainly in travel and equipment use at client sites. |
Note: These figures are based on usage of customers who bought energy contracts through Bionic in 2023.
≈ means approximately.
How to cut your business energy usage
Managing and improving the energy efficiency of your business will help to reduce the amount of energy consumed. There are a number of ways to do this, such as:
- Carrying out an energy audit
- Using energy-efficient lighting
- Using energy-efficient computers
- Encouraging your staff to go green
- Generating your own renewable energy
Although the effectiveness of any energy efficiency measures depends on the type of business you run and the steps you take, even making a few small changes can help to make a big difference.
Simple steps like switching to LED lighting, optimising heating, maintaining HVAC equipment, and turning off idle kit can often cut electricity consumption by 10 to 20% without major spending. For more ideas, check out our guide to business energy efficiency.
How to reduce your business energy bills
Cutting the amount of gas and electricity you use is the most effective way to cut your business energy bills (and do your bit for the environment). But switching energy suppliers is a quick and simple way to cut costs.
The tech-enabled energy experts at Bionic can find the right deal for your business in a matter of minutes and help you with the switch. To start your business energy comparison, let us know your postcode or give us a call on 0800 077 3701 and we’ll do the rest.
If you don’t arrange a new deal before your current one expires, your supplier will place you on its more expensive rates. The only way to make sure that you never pay more than you need to for energy is to stay on top of your renewal dates and switch at the right time.
If this sounds like too much hassle, don’t worry - our Digital Renewal service can automatically take care of renewals so you never overpay for energy again.
Comparing quotes against your actual kWh usage – not just your spend – is the best way to see if you’re overpaying and to understand how changes in consumption will affect your future bills.
We can also help you with a range of other business essentials, including business insurance, VoIP, phone and broadband.
Average UK business energy consumption FAQs
Here’s an at-a-glance guide to some of the most frequently asked questions about average energy usage for UK businesses:
What is the average energy consumption for a UK microbusiness?
A typical UK microbusiness uses around 10,000 kWh of gas and up to 15,000 kWh of electricity a year, depending on its size and sector.
How many kWh does a small business use each year in the UK?
A small UK business usually uses about 25,000 kWh of gas and up to 25,000 kWh of electricity annually.
What is the average electricity usage for a medium-sized UK business?
Medium‑sized businesses in the UK often use between 25,000 and 50,000 kWh of electricity per year, with higher usage in energy‑intensive industries.
How much energy does a large UK business typically use?
Large UK businesses generally use over 55,000 kWh of electricity a year and 65,000 kWh or more of total energy when gas is included.
Which UK business sectors use the most energy?
Energy‑intensive sectors like pharmaceutical manufacturing, metals, food production, care homes, warehousing and hospitality tend to have the highest average business energy consumption.
How can I tell if my UK business is using more energy than average?
You can compare your annual kWh from bills or smart meter data with published averages for your business size and sector to see if your usage is unusually high.
What is the easiest way for a UK business to cut energy usage?
Most UK businesses can quickly cut usage by upgrading lighting, optimising heating controls, switching off idle equipment and fixing obvious inefficiencies picked up in a simple energy audit.
How can Bionic help my UK business with energy usage and costs?
Bionic compares business gas and electricity deals based on your actual kWh usage and helps you find a tariff and contract length that match your consumption pattern and budget.
