A complete guide to business energy for restaurants

Busy restaurants can use a lot of energy. When you consider the lighting and heating that are essential for creating an ambience, and the gas and electricity that are essential for cooking, the costs can soon add up. 

That’s why it’s so important to make sure you’re on the best deal, so you can keep your costs as low as possible.

In this guide to business energy for restaurants…

• You'll find out what the average business electricity and gas bill costs restaurants of different sizes in 2026, so you can benchmark your own kitchen and dining room spend.
• You'll learn how gas and electricity rates are calculated for restaurants, including the extra costs like the Climate Change Levy and VAT.
• You'll get kitchen-specific ways to cut energy waste, from refrigeration and extraction to hot water and cooking equipment.
• You'll understand how and when switching business energy suppliers could reduce your costs, and what could happen if you don't switch.
• You'll see how MoneySuperMarket, working with Bionic, can help you compare business energy quotes from a panel of UK suppliers in a few simple steps.

What is the average business electricity bill in 2026?

The amount you pay for business electricity depends on your business’s location and your energy supplier, but these average amounts will give you a rough guide to what you can 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	28.8p	53.7p	£3,079 (based on annual usage of 10,000 kWh)
Small business	15,000 - 25,000	28.1p	56.5p	£5,871 (based on annual usage of 20,000 kWh)
Medium business	25,000 - 50,000	27.7p	115.0p	£11,511 (based on annual usage of 40,00 kWh)

^{Note: Prices are correct as of July 2026. 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 received by Bionic from our panel of suppliers (inclusive of maximum Bionic commission), per business size thresholds, from January 1 to July 8, 2026.}

Business electricity is a type of commercial energy contract that supplies power to non-domestic premises such as restaurants, cafés and takeaways. It isn't covered by the domestic energy price cap, and rates are typically negotiated on fixed-term contracts based on your kitchen's usage, location and credit profile.

What is the average business gas bill in 2026?

As a restaurant owner, gas is likely to be important to the success of your business. The amount you pay for business gas depends on your business’s location and your energy supplier, but these average amounts will give you a rough guide to what you can 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	9.9p	39.7p	£1,136 (based on annual usage of 10,000 kWh)
Small business	15,000 - 30,000	9.4p	47.5p	£2,295 (based on annual usage of 22,500 kWh)
Medium business	30,000 - 65,000	9.5p	53.5p	£4,708 (based on annual usage of 47,500 kWh)

^{Note: Prices are correct as of July 2026. 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 received by Bionic from our panel of suppliers (inclusive of maximum Bionic commission), per business size thresholds, from January 1 to July 8, 2026.}

Restaurants and food service businesses are among the UK sectors most exposed to energy price rises. The latest ONS Business Insights and Conditions Survey found that the accommodation and food service activities industry reported the highest proportion of businesses expressing concern about energy prices of any sector, at 88%, as of late June 2026. That's a reflection of how energy-intensive kitchens can be compared with other business types.

How are your restaurant's energy rates calculated?

The amount you pay for the gas and electricity needed to run your restaurant can vary depending on 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 business energy bills, most of the costs will be based on the amount of energy your restaurant has used. These are the two main costs to look out for on your bills:

• Unit rate: The price you pay per unit (kilowatt-hour or kWh) of energy you use. This varies depending on your supplier and tariff.
• Standing charge: A daily fee that covers the cost of supplying energy to your business, regardless of how much energy you use.

These costs will also usually be included in the rates you pay:

• Wholesale costs are the price your supplier pays for the gas and electricity they provide to you. These costs fluctuate with market conditions, but if you’re on a fixed contract, your rate will stay the same throughout your agreement.
• Network costs are fees your supplier pays to use the transmission and distribution networks that deliver energy from power stations to your business.
• Environmental costs are contributions suppliers are required to make to government-mandated environmental programs, aimed at promoting sustainability and reducing carbon emissions.
• Operating costs are the expenses your supplier incurs to manage your account and ensure it runs smoothly.
• Climate Change Levy (CCL) is a tax on the energy your business uses, designed to encourage energy efficiency and reduce carbon emissions. Businesses using less than 33 kWh of electricity or 145 kWh of gas daily are exempt.
• VAT is a tax applied to goods and services. Depending on your energy usage, you’ll either pay the standard 20% rate or a reduced rate.

How to make your restaurant more energy efficient

There are lots of ways to improve energy efficiency at your restaurant and bring your business energy bills down.

Make sure you keep fridge doors closed whenever possible, and check that the seals on your fridges and cold rooms are intact. Defrost and clean your fridges regularly, and keep the condensers and evaporators clean. When you’re looking to buy a new refrigerator, check the energy rating - AA++ rated units are the cheapest to run.

A third of your energy cost is typically spent on heating and hot water, so it’s worth insulating your hot water pipes to make sure you’re not losing any heat. Check that your water temperature is at 60 °C, as this keeps the water hot and kills bacteria. Fix any leaking taps as quickly as possible, and consider swapping for spray water taps, as these use less water than conventional taps.

When it comes to heating and ventilating your restaurant, it’s important to get your systems serviced regularly to make sure they’re running as efficiently as possible. Consider turning your thermostats down to a comfortable level - you rarely need to use air conditioning below 24C. Switch off your kitchen hoods when they’re not needed, and match your heating timer to the times when the rooms are being used.

Don’t forget about lighting - simply replacing your traditional light bulbs with LED ones could reduce the electricity you use for lighting by as much as 80%. Encourage your staff to switch off lights when they’re not needed - installing movement sensors, time switches, and daylight sensors will also help with this.

Can you save money by switching energy suppliers?

Yes, switching business energy suppliers before your contract ends is one of the most effective ways to reduce costs. By comparing tariffs and exploring your options early, you can secure a highly competitive deal for your business.

Energy prices typically increase over time, meaning staying with your current supplier's rates is unlikely to result in savings. Fixing your rates now could lower your energy bills by up to a third when compared to the elevated costs of out-of-contract rates. Taking prompt action and comparing quotes is a prudent strategy to manage your energy expenses effectively.

Out-of-contract rates are default energy tariffs that suppliers automatically place businesses on when a fixed-term contract ends, and no new deal has been agreed. As these rates are not typically negotiated, they can be considerably more expensive than fixed-term contracts. 

For restaurants that rely on energy-intensive kitchen equipment throughout the day, remaining on an out-of-contract tariff can lead to significantly higher running costs, making it important to compare options and secure a new deal before renewal.

How to switch business energy suppliers

Switching business electricity and gas suppliers is straightforward and hassle-free with MoneySuperMarket and Bionic. Instead of spending valuable time comparing deals independently, our team will handle the process for you.

Start a business energy comparison by clicking the "Compare tariffs today" button on this page, or go to our main business energy comparison page.

Using a comparison service like MoneySuperMarket, working with Bionic, means you can compare quotes from multiple UK suppliers without having to contact each one individually - helping busy restaurant owners find a competitive deal without taking time away from service.

Business energy for restaurants FAQs

Still unsure about energy and your restaurant? Check out the answers to our most frequently asked questions.

How much does a small restaurant pay for gas and electricity per year?

A small restaurant using around 20,000 kWh of electricity and 22,500 kWh of gas a year could expect to pay approximately £5,871 for electricity and £2,295 for gas, based on current average rates. Actual costs vary by kitchen size, cooking method and location, so it's worth comparing quotes for an accurate figure.

Why do restaurants use so much more energy than other small businesses?

Restaurants run energy-intensive equipment almost continuously, including refrigeration, extraction, ovens and hot water systems, often well beyond normal opening hours for prep and clean down. This constant demand, combined with lighting and heating for the dining area, means restaurants typically use significantly more energy per square metre than an office or shop.

Should a restaurant be on a gas or electric cooking setup?

Many kitchens use a mix of both, as gas is often cheaper per kWh for high-heat cooking while electricity powers refrigeration, extraction and lighting. The right balance depends on your menu, kitchen layout and local gas connection, so it's worth reviewing your setup against your energy contract options.

How can restaurants reduce refrigeration running costs?

Keeping fridge and freezer doors closed, maintaining door seals, and defrosting and cleaning condensers regularly all help equipment run more efficiently. Choosing high energy-rated units (AA++ where possible) when replacing equipment can also cut long-term running costs.

When is the best time to switch business energy suppliers for a restaurant?

It's generally best to start comparing quotes around three to six months before your current contract ends, giving you time to review the market without falling onto expensive out-of-contract rates. This is particularly important for restaurants, given how much energy-intensive equipment they run.

Do restaurants have to pay the Climate Change Levy?

Most restaurants will pay the CCL as part of their energy bill, since few kitchens use less than 33 kWh of electricity or 145 kWh of gas a day. Very low-usage sites, such as small cafés, may qualify for an exemption if their daily use falls below the threshold.

What happens if a restaurant doesn't switch when its energy contract ends?

If you don't switch or renegotiate, your supplier will usually move you onto a deemed or out-of-contract rate, which is typically far more expensive than a fixed-term deal. Given how energy-intensive kitchens are, this can have a noticeable impact on margins if it's left unchecked.

Is it worth using a comparison service instead of contacting energy suppliers directly?

A comparison service can save time by checking multiple suppliers' rates in one place, which matters for restaurant owners with little spare time between services. Comparison platforms like MoneySuperMarket, working with Bionic, can talk you through quotes and support the switch on your behalf.