Business Energy Cost Calculator
Estimate your annual electricity and gas costs using Ofgem typical consumption benchmarks by business type. Enter your floor area, employee count, and current tariffs to see your estimated spend and how it compares to your sector.
Business Energy Cost Estimator
Estimate your annual electricity and gas costs using Ofgem typical consumption benchmarks
Total usable floor area of your business premises
Full-time equivalent employees on site
Check your bill or contract — UK business average is around 26–30p/kWh in 2024/25
UK business average is around 6–9p/kWh in 2024/25
Affects electricity consumption — e.g. 45 for a standard office, 70+ for restaurants
Sector comparison (Office)
Sector benchmark: £28.00/sqm/year (electricity only)
Potential saving with smart meters & efficiency: £1,197.00/year (est. 15%)
Ofgem Typical Consumption Benchmarks
These estimates are based on Ofgem typical consumption values and industry surveys. Actual consumption depends on equipment, insulation, occupancy patterns, and climate control.
| Business type | Electricity (kWh/sqm/yr) | Gas (kWh/sqm/yr) |
|---|---|---|
| Office | 100 | 120 |
| Retail / Shop | 180 | 100 |
| Restaurant / Café | 400 | 500 |
| Manufacturing | 200 | 300 |
| Warehouse | 60 | 40 |
Current UK Business Energy Rates (2024/25)
- Electricity: 26–32p/kWh (typical business tariff)
- Gas: 6–9p/kWh
- Standing charges: 40–80p/day (electricity), 25–50p/day (gas)
Note: Standing charges are not included in this estimate as they are fixed regardless of consumption.
Energy Efficiency Quick Wins
- LED lighting upgrade: reduce lighting energy by 60–80%
- Smart thermostats: reduce heating costs by 15–25%
- PC power management: reduce office IT energy by 20%
- Insulation and draught-proofing: reduce heating costs by 10–20%
- Solar PV panels: generate 20–50% of electricity needs depending on roof space
VAT on Business Energy
Business energy attracts 20% VAT in most cases. However, if more than 60% of the energy supply is used for domestic or qualifying charitable use (e.g. a housing association), the 5% reduced rate may apply. Confirm with your energy supplier.