Barber shop energy plans, suppliers and costs

Barber shops, like many small businesses, need to manage their energy usage effectively to keep operational costs in check. With the reliance on electrical equipment such as clippers, lights, and heating, energy consumption can be significant. Understanding your energy needs and finding the most suitable tariff can help you achieve better cost efficiency. At YourUtilities.co.uk, we provide insights and tools to help barber shop owners navigate the complex world of energy tariffs, ensuring that they have the information they need to make informed decisions about their energy supply.

How much does energy cost for a barber shop?

There is no published price list for barber shops. What a barber shop pays depends on how much it uses in a year, when it agreed its contract and for how long, wholesale prices at that time, the standing charge, meter type, payment method and credit history. The most recent government figures, for the second quarter of 2026 (April to June, provisional), put the average price paid by UK non-domestic customers at 24.51p per kWh for electricity and 5.28p per kWh for gas, including the Climate Change Levy and standing charges and excluding VAT. A year earlier the averages were 24.03p and 5.31p. Smaller users typically pay more per unit: businesses using under 20,000 kWh of electricity a year averaged 38.36p per kWh, and those using under 278,000 kWh of gas averaged 9.31p per kWh.

Source: Department for Energy Security and Net Zero, Prices of fuels purchased by non-domestic consumers in the UK (Quarterly Energy Prices tables 3.4.1 and 3.4.2), published 29 September 2026. Q2 2026 figures are provisional; next update 17 December 2026. Prices are fully delivered averages including the Climate Change Levy and all other elements except VAT, so standing charges are already spread across the units. Averages across every UK business in a band, not quotes, and not comparable with a supplier’s unit rate.

Working out a monthly figure for your business

Take the annual kWh from your latest bill or annual statement, find the band above and multiply for a rough benchmark. A site using 15,000 kWh of electricity a year sits in the very small band: 15,000 × 38.36p is about £5,750 a year, or roughly £480 a month before VAT. A site using 60,000 kWh of gas a year: 60,000 × 9.31p is about £5,590 a year, or roughly £465 a month. The bands are statistical groupings used by the government, not supplier price breaks, so treat them as a guide to what similar-sized sites paid rather than a price you will be offered. To judge an actual quote, compare its total annual cost (unit rate × your annual kWh, plus the daily standing charge × 365) with what you pay now.

VAT and the Climate Change Levy on business energy

The prices above exclude VAT. Business energy normally carries VAT at 20% plus the Climate Change Levy (CCL). HMRC applies the 5% reduced rate, with no CCL, in three cases. First, low usage: supplies averaging no more than 33 kWh of electricity a day (1,000 kWh a month) or 145 kWh of gas a day (4,397 kWh a month) are treated as domestic use whoever the customer is. Second, fuel and power for domestic use, which HMRC defines to include homes providing care for the elderly or disabled, children’s homes, hospices and school or university residential accommodation. Third, a charity’s non-business activities. From 1 October 2026 to 31 March 2027, electricity that qualifies for the reduced rate is charged at 0% VAT instead of 5% in England, Scotland and Wales; qualifying gas stays at 5%, qualifying electricity in Northern Ireland stays at 5%, and electricity returns to 5% from 1 April 2027. HMRC has not changed which supplies qualify or the certificate process; the same rules decide whether a supply gets 0% or 20%. Where a site is mixed, 60% or more qualifying use means the whole supply gets the reduced rate; below that the supply is split between the two rates, and the customer gives the supplier a certificate declaring the qualifying percentage. Source: HMRC VAT Notice 701/19 (sections 2.8, 3.2 to 3.5, 4.2 and 5.2, updated 5 February 2025), gov.uk VAT rates and HMRC Revenue and Customs Brief 10 (2026).

Do Ofgem’s microbusiness protections apply to barber shops?

Ofgem treats a business as a microbusiness if it has fewer than 10 employees (or their full-time equivalent) and an annual turnover or balance sheet total of no more than £2 million, or if it uses no more than 100,000 kWh of electricity or 293,000 kWh of gas a year. A business can be a microbusiness for one fuel and not the other. Independent barber shops that meet either test are covered by Ofgem’s microbusiness rules, which give extra protections around contract terms and renewals (Ofgem: get energy for your business).

Do business energy rates vary by region?

Yes. Part of every unit rate covers the cost of the local electricity distribution network, and Great Britain has 14 licensed distribution areas each with its own charges, so identical contracts are priced differently in, for example, the north of Scotland and London. DESNZ does not publish non-domestic prices by region, so regional figures quoted elsewhere are supplier or broker estimates rather than official statistics.

Which energy supplier is best for barber shops?

There is no single answer. Suppliers price business contracts individually rather than publishing standard tariffs for barber shops, so the cheapest supplier for one business is often not the cheapest for the next: each prices on the consumption, meter type, contract length and credit profile in front of it. Compare the total annual cost of like-for-like contract lengths rather than the headline unit rate, and check the standing charge and what happens when the contract ends before signing.

How barber shops use energy

Barber shops typically have a consistent energy usage pattern, with peak times often aligning with business hours when lighting, heating, and electrical equipment are in constant use. Hair clippers, hair dryers, and other styling tools are essential and can contribute significantly to the energy bill. Additionally, maintaining a comfortable environment for customers means heating or air conditioning systems are often running, increasing energy demands further. Understanding these patterns can help in choosing a tariff that aligns with your business hours and usage needs.

What affects energy bills for barber shops

Several factors can influence the energy costs for a barber shop:

• Hours of operation: Longer hours mean more energy consumed.
• Equipment efficiency: Older equipment may use more energy.
• Seasonal demand: Heating in winter and cooling in summer affect usage.
• Shop size: Larger spaces may require more lighting and heating.
• Energy supplier rates: Different suppliers offer varying rates.

How to compare tariffs

When comparing energy tariffs for your barber shop, consider the following checklist:

• Review your current energy usage patterns.
• Identify peak operation hours and match tariffs accordingly.
• Consider fixed vs variable rate options.
• Check contract length and terms for flexibility.
• Look for tariffs that support renewable energy if sustainability is a priority.

Gas or electricity: what matters most

For most barber shops, electricity is the primary energy source due to the reliance on electrical equipment. However, gas may be used for heating, depending on the installation in the premises. It's important to evaluate the cost-effectiveness of using gas versus electricity for heating, considering the running cost and efficiency of each option. While electricity is unavoidable, optimising heating solutions can offer opportunities for improved cost management.

How switching works

Switching energy suppliers for your barber shop can be straightforward with the right steps:

1. Review your current energy contract and note the end date.
2. Gather recent energy bills to understand your usage.
3. Use an energy comparison tool to find suitable tariffs.
4. Contact the new supplier and initiate the switch.
5. Ensure final meter readings are submitted to both old and new suppliers.

More business energy guides

Return to our business energy hub to explore guides for other industries, or go directly to our business gas or business electricity pages.

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