A complete guide to business energy for offices

A busy office needs a lot of electricity to keep it running from day to day. The monthly cost of running your office can soon mount up, so it’s important to understand what you’re paying for and how to keep your costs down.

How are your office energy rates calculated?

The amount you pay for your office energy can be influenced by several things, including:

• Your business’s credit rating - if suppliers think there’s a credit risk with your business, they may not offer you the most competitive rates
• The size of your business
• Your location - this can affect how much it costs suppliers to physically send energy to your premises
• Your business type - you might pay less if you’re a sole trader or a limited company, for example
• Your business sector
• How much energy your business uses each year

When you get your energy bill, most of the costs will be based on the amount of energy your office has used. But you can also expect to see these costs included on your bill:

• Wholesale costs: This is the amount your supplier pays to buy the gas and electricity for your business. These prices fluctuate depending on market activity, but if you’re on a fixed contract you’ll pay the same rate for the duration of your contract.
• Network costs: These are the costs your supplier has to pay to use the transmission and distribution networks to deliver energy from power stations to your premises.
• Environmental costs: Suppliers must contribute to certain government environmental schemes, so these costs cover what they have to pay
• Operating costs: These cover what it costs your supplier to operate your account and keep it running smoothly
• Climate Change Levy (CCL): The Climate Change Levy is a tax on each unit of energy your business uses. It's designed to encourage businesses to become more energy efficient and reduce their carbon footprint. You won’t have to pay this if your business uses less than 33 kWh of electricity per day, or less than 145 kWh of gas per day.
• VAT: VAT is a tax charged on goods and services - depending on how much energy you use, you might be charged at the standard 20% rate or a reduced rate. Find out more in our guide to business energy and VAT.

What is an average business electricity bill in 2025?

The amount you pay for business electricity varies depending on your business’s location and your energy supplier, but these average amounts will give you an idea of what to expect to pay:

Business size	Average annual usage (kWh)	Average price (per kWh)	Standing charge (daily)	Average annual price
Micro business	5,000 - 15,000	25.7p	46.4p	£2,743 (based on annual usage of 10,000 kWh)
Small business	15,000 - 25,000	26.0p	53.8p	£6,039 (based on annual usage of 22,500 kWh)
Medium business	25,000 - 50,000	25.2p	83.8p	£12,482 (based on annual usage of 47,500 kWh)

_{Note: Prices are correct as of March 2025. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges on contracts sold by Bionic from January 3 to March 6, 2025.}

How to make your office more energy efficient

There are lots of things you can do to make your office more energy efficient and bring your business gas and electricity bills down:

IT equipment uses energy even when it’s in standby mode, so encourage your staff to switch equipment off when it’s not being used. Make sure you use the energy-saving features on things like monitors and printers, and shut down all your equipment at weekends and bank holidays. Simply turning off computers and monitors at night can save £35 a year per desk.

Encourage your staff to switch off office lights when they’re not needed. You could also use movement detectors, time switches and daylight sensors to help with this. It’s worth considering installing energy-efficient lights like LEDs and compact fluorescent products, as these use 80% less electricity than conventional light bulbs. You could reduce your costs by up to 15% by having the right office lighting.

When it comes to heating your office, electric heaters are one of the most expensive options, so it’s best to avoid these. Closing window blinds in the early evening can help reduce night-time heat loss. In warm weather, turn down the heating rather than opening windows, and turn down thermostat radiators - reducing the temperature by just 1°C can save enough energy to print over 40 million sheets of A4 paper.

You can also make some bigger changes to your building to help reduce draughts - consider installing automatic closers on external doors, like fire doors, and putting self-adhesive thermal strips around your doors and windows to reduce draughts. Improving your roof insulation could help you keep up to 25% more heat in your building.

Can I save money by switching energy suppliers?

Yes. Switching business energy suppliers before your contract ends is one of the simplest ways to cut your costs. By shopping around and comparing tariffs early, you can lock in a great deal for your business.

Energy prices usually creep up over time, so sticking with your current supplier’s rates isn’t likely to save you money. But by fixing your rates now, you could slash your energy bills by up to a third compared to expensive out-of-contract rates. That’s why acting fast and comparing quotes makes smart business sense.

How do I switch business energy suppliers?

Switching business electricity and gas suppliers doesn’t have to be complicated - it’s quick and hassle-free with MoneySuperMarket and Bionic. Instead of spending hours comparing deals on your own, let us do the hard work for you.

We’re here to make finding the best energy deal for your business as easy as possible. Call us today on 0800 140 4667, and we’ll compare business energy quotes for you. Or pop in your postcode, and we’ll give you a call back to help you save big on your energy bills.