A complete guide to business energy for shops

Shops can use a lot of energy. Electricity is needed to light the shop floor and displays, to power equipment and appliances, and then there's the energy used for heating and cooling. The costs soon add up. 

That’s why it’s important to understand what you’re being charged for, so you can make sure you’re on the best deal and keep control of your business energy bills.

In this guide to business energy for shops…

• You'll find out what the average business electricity bill costs shops of different sizes in 2026, so you can benchmark your own spend.
• You'll learn where shops typically lose the most energy, from heating and refrigeration to lighting and ICT equipment.
• You'll get practical, low-cost and no-cost ways to cut energy waste across your shop floor, stockroom and staff areas.
• You'll understand how and when switching business energy suppliers could reduce your costs, and what could stop you from getting the best deal.
• 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 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 price (per kWh)	Standing charge (daily)	Average annual price
Micro business	28.8p	53.7p	£3,079 (based on annual usage of 10,000 kWh)
Small business	28.1p	56.5p	£5,871 (based on annual usage of 20,000 kWh)
Medium business	27.7p	115.0p	£11,511 (based on annual usage of 40,000 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 shops, offices and warehouses. Unlike household energy, business electricity is not covered by the domestic energy price cap. It is subject to VAT at 20% (with some exceptions), and is typically bought on fixed-term contracts negotiated directly with a supplier or through a comparison service.

Energy costs remain a live concern for UK shops. The ONS Business Insights and Conditions Survey found that almost two-thirds (64%) of UK businesses reported some degree of concern about energy prices in late June 2026, with the accommodation and food service sector reporting the highest levels of concern at 88%

How do shops use gas and electricity?

Although retail is a diverse sector, there are many common areas where energy is wasted.

Around a third of all energy used by shops goes on heating, with a quarter used for cooled storage and a quarter for lighting. Then a combination of ICT equipment, hot water, catering, fans and other factors make up the rest of the total energy consumption in the retail sector.

From boutique shops to sprawling department stores, every retailer’s energy use can vary. This makes it difficult to pinpoint when and how your business uses energy. But we can give you an average figure of how much energy you can expect to use, based on the size of your business.

Business size	Number of employees	Average annual gas usage	Average annual electricity usage
Microbusiness	Less than 10	5,000-15,000 kWh	5,000-15,000 kWh
Small business	10-49	15,000-30,000 kWh	15,000-25,000 kWh
Medium business	50-249	30,000-65,000 kWh	25,000-50,000 kWh

How to make your shop more energy efficient

There are lots of things you can do to make your shop more energy efficient and bring your business energy costs down.

• Switch off: Make sure you switch off all energy-consuming equipment when you don’t need it. You can ask your staff to do this or use timer switches for lights and heating systems. 
• Insulate: If your building isn't properly insulated, cold air will get in and hot air will get out. This means your heating systems need to work harder to maintain the right temperature. This uses more energy and costs you more money. Double glazing, ceiling and wall insulation can help, as can cheaper options like draught excluders on doors and windows.
• Maintain: It’s important to ensure your equipment is well maintained and running properly so it doesn’t waste any energy. You can often make energy efficiency improvements as part of your routine maintenance procedures for no extra cost.
• Upgrade: If you can afford to, replace old, inefficient equipment with newer, more energy-efficient models.

Here are some practical tips for lighting, heating, and other appliances that might be in your shop.

• Lighting - Lighting doesn’t just brighten your store—it sets the mood, keeps customers safe, and encourages them to linger (and buy!). But it can also be a big drain on your energy bill. Switching to energy-efficient lighting is a smart move that keeps your shop looking great while saving you money. It's also worth considering using lower lighting in non-customer areas like stock rooms, store cupboards and staff toilets. Fiting motion sensors in these areas can also help cut down usage. If you have lights outside your shop, fitting light sensors will make sure the lights only come on when it’s dark outside.
• Heating - Nobody wants to shop in an icebox! A warm, welcoming store helps keep customers comfortable and coming back. But don’t go overboard—cranking the thermostat up too high could leave shoppers uncomfortable and send your bills soaring. If you can, keep any outer doors closed. This will stop heated air from escaping and cold air from getting in. If you do have to leave your doors open, fitting an air curtain above the door can reduce the amount of warm air that escapes and cold air that gets in. 
• Fridges and Freezers - Refrigeration is a must if you’re in the food and drink business. But keeping things cool can be costly. Energy-efficient refrigeration systems can help you cut costs while keeping everything at the perfect temperature to meet safety standards. If you have display refrigerators in your shop, avoid overfilling them - the more products you have on the shelves, the harder it is for air to circulate and the harder the equipment has to work. If your display fridges are fitted with doors, make sure they close properly and the seals fit correctly. Turn off the display lights when the store is closed, and keep the condensers clean and dust-free.
• Electrical Appliances - From tills to tablets, your shop relies on electrical appliances to keep things running smoothly. Regular maintenance is key to keeping energy use efficient. And here’s a top tip: remind your team to switch everything off at the end of the day to avoid unnecessary energy waste.

You can get more tips in our guide to business energy efficiency.

Can you save money by switching energy suppliers?

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

Remember, energy prices usually go up over time, so it's unlikely you'll get better rates than those on your current fixed-rate deal. But fixing your rates could cut your energy bills by as much as a third compared to what you'd pay on your supplier's out-of-contract rates. That's why it can pay to compare quotes and lock in your rates as soon as possible.

Out-of-contract rates are a type of default, non-negotiated tariff that a supplier automatically moves a business onto if it doesn't renew or switch when its fixed-term contract ends. These rates are typically significantly more expensive than fixed-rate deals, which is why comparing your options ahead of your renewal date could help protect your shop from a sharp rise in costs.

How to switch business energy suppliers

Switching business energy suppliers might sound complicated, but it doesn’t have to be. Comparing tariffs and providers can take time if you go it alone, but we're here to support your business and keep things as simple as possible. 

MoneySuperMarket has teamed up with Bionic to help cut the energy bills at your shop. 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 time-poor shop owners find a competitive deal without the legwork.

Business energy for shops FAQs

Still got some questions about business energy for shops? Check out the answers to some of our most frequently asked questions.

How much does a small shop pay for electricity per year?

A small shop using around 20,000 kWh of electricity a year could expect to pay approximately £5,870 annually, based on an average unit rate of 28.2p per kWh and a daily standing charge of 65.4p. Actual costs depend on location, meter type and the tariff you're on, so it's worth comparing quotes for an accurate figure.

Why is business energy more expensive than domestic energy?

Business energy isn't protected by the domestic price cap, so suppliers can set commercial rates more freely based on wholesale costs, contract length and business risk. Business electricity also carries a higher rate of VAT (20% in most cases, compared with 5% for domestic supplies), which adds to the overall cost.

Can I get a fixed-rate energy deal for my shop?

Yes, most UK business energy suppliers offer fixed-rate contracts, typically lasting between one and five years. Locking in a fixed rate protects your shop from mid-contract price rises, which can make budgeting easier.

When is the best time to switch business energy suppliers?

It's generally best to start comparing quotes around three to six months before your current contract ends, as this gives you time to review the market without falling onto expensive out-of-contract rates. Some suppliers also offer better rates to businesses that switch early.

How much can shops save by improving energy efficiency?

Savings vary by shop size and current usage, but simple changes like switching to LED lighting, using timers and maintaining refrigeration equipment can meaningfully reduce consumption. Combining efficiency measures with a competitive tariff tends to deliver the biggest overall reduction in bills.

Do all shops need a smart meter?

Smart meters aren't mandatory for businesses, but many suppliers encourage or require them, as they send automatic, accurate readings rather than relying on estimates. This can help avoid billing errors and give shop owners clearer visibility of energy use throughout the day.

What happens if I don't switch when my business 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. It's worth making a note of your renewal date so you can compare the market in good time.

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

A comparison service can save time by checking multiple suppliers' rates in one place, which is useful for shop owners who don't have time to shop around individually. Comparison platforms like MoneySuperMarket, working with Bionic, can talk you through quotes and support the switch on your behalf.