Average energy consumption by business size
1. UK businesses are using 15% less energy than in 2023, averaging just over 23 MwH of energy a year.
Between energy-efficient resources and a bigger focus on sustainability, UK businesses are finding ways to overcome rising business energy costs. In 2023, companies across the UK collectively cut 15% off their energy bills.
2. Very small businesses have increased their business energy usage by almost 10% on average.
Very small businesses are often limited in resources and only have the funds for old equipment that may not be as efficient in energy consumption. Start-ups also have longer working hours. These factors, paired with rising energy costs, have all likely contributed to small businesses’ 10% increase in energy usage.
3. Very large businesses have seen the biggest decrease in average energy use in the last quarter of any business size.
Very small businesses struggle with energy consumption, but some very large businesses keep costs low by managing their energy systems. Moreover, more than 4 in 10 large UK businesses utilise energy-efficient equipment, a bigger proportion than any other business size. By adjusting their energy usage based on demand, large corporations can alter their energy usage and, more importantly, reduce energy waste.
Business electricity statistics
UK business energy statistics from Q4 of 2024 show that the average spend on electricity has decreased from £5446 to £5117, which sounds like great news for businesses.
However, 28% of businesses say that more than 10% of their total costs are spent on their electricity bill. With this in mind, how much can you expect to pay for electricity based on your business size?
| Business size | Annual usage | Unit price (per kWh) | Daily standing charge (pence) | Annual cost (one-year fixed term contract, Feb 2025) |
| Micro business | 5,000 to 15,000 kWh | 26.6p | 64.6p | £2,833 (based on annual usage of 10,000 kWh) |
| Small business | 15,000 to 25,000 kWh | 25.6p | 83.0p | £5,302 (based on annual usage of 20,000 kWh) |
| Medium business | 25,000 to 55,000 kWh | 26.1p | 65.5p | £10,637 (based on annual usage of 40,000 kWh) |
| Large business | More than 55,000 kWh | 26.4p | 68.5p | £14,548 (based on annual usage of 55,000 kWh) |
1. Small businesses have the lowest electricity unit price in 2025
Many factors are involved in calculating the unit price of business electricity, from the cost of generation to environmental impacts and market demand. When comparing the unit price of businesses, small-sized companies have the cheapest average tariff (25.6p per kWh), followed closely by medium businesses (26.1p per kWh).
If you are a micro business using up to 15,000 kWh of electricity per year, your unit price will be the most expensive of any size business, at 26.6p per kWh.
2. Daily standing charges in 2025 are higher for small businesses than any other
Whether you are a big or small energy consumer, most businesses must pay a daily standing charge for electricity. This cost covers all the behind-the-scenes work that goes on to supply energy to you.
On average, micro-businesses use much less energy than larger businesses, meaning the cost of keeping electricity available is spread over a smaller energy consumption. Because of this, micro businesses have the lowest average daily standing charge (64.5p).
Having said this, small businesses have a higher daily standing charge (83p) than medium (65.5p) and large (68.5p) companies on average as of February 2025. This could be the case for several reasons, such as having more expensive metering and infrastructure, whereas large-scale companies have more optimised facilities.
3. Small businesses should expect to pay around £5,300 in 2025 for electricity
Fixed-term contracts are a popular choice for businesses, offering a stable price and opportunities for planning and budgeting. Despite differences in unit prices and standing charges across business sizes, the annual cost of a one-year fixed contract is relative to yearly usage.
What is the average electricity consumption for a UK business?
| Rank | Business size | Electricity consumption (TWh) |
| 1 | Very Large (1,000+ employees) | 27 |
| 2 | Medium (50-249 employees) | 11 |
| 3 | Micro (<10 employees) | 10 |
| 4 | Large (250-999 employees) | 9 |
| 5 | Small (10-49 employees) | 8 |
1. Small businesses consume the least electricity in buildings
Unsurprisingly, buildings occupied by ‘very large’ businesses have the most considerable average electricity consumption, but business energy statistics show that small businesses (8 TWh) consume less than micro businesses (10 TWh).
While consumption varies massively depending on the service offered, the surprising difference in usage could result from energy efficiency and better energy-saving management.
2. Micro businesses consume more electricity than large businesses
Interestingly, 2022 data suggests that micro businesses consume more electricity than large businesses. Micro businesses likely operate multiple pieces of equipment at more regular intervals, which could account for their high energy consumption compared to large businesses, which are more optimised in terms of electricity usage.
Which industries use the most electricity?
1. 122 TWh of electricity was used by non-domestic buildings in England and Wales in 2022
To put this figure into perspective, 122 TWh of electricity would power an average electric car (∼20 kWh/100km) for over 400 billion miles!
2. Factories are the biggest users of electricity in England and Wales, with double the consumption of any other industry
Technological advancements have had huge impacts on energy bills, specifically when it comes to electricity, with companies adopting computers and machinery to help them conduct business.
With this in mind, it is unsurprising that factories (36 TWh) and offices (18 TWh) are the highest-consuming industries compared to the population of non-domestic buildings.