Best energy suppliers for beauty salons: costs and tariffs

Running a beauty salon involves a variety of energy-intensive activities, from hairdryers and styling equipment to lighting and heating, all of which contribute to the overall energy consumption. As energy costs can form a significant part of operational expenses, it's crucial for salon owners to understand their energy usage and explore ways to manage it more efficiently. By comparing different energy tariffs and implementing energy-saving measures, beauty salons can potentially reduce their energy bills while maintaining the quality of services offered to clients. This page provides insights into the energy considerations specific to beauty salons, helping you make informed decisions about your business energy needs.

How much does energy cost for a beauty salon?

There is no published price list for beauty salons. What a beauty salon 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 beauty salons?

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 beauty salons 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 beauty salons?

There is no single answer. Suppliers price business contracts individually rather than publishing standard tariffs for beauty salons, 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 beauty salons use energy

Beauty salons typically experience high energy usage due to the need for continuous operation of various electrical equipment such as hairdryers, straighteners, and washing machines. Additionally, the lighting requirements in salons are substantial to ensure proper visibility for precision work, and heating systems are often needed to maintain a comfortable environment for clients. The energy demand may vary throughout the day, with peak usage during busy periods such as weekends or late afternoons when more clients are scheduled. Understanding these patterns can help salon owners consider energy-efficient alternatives and better manage their consumption.

What affects energy bills for beauty salons

Several factors can influence energy bills for beauty salons, including:

• The number and type of electrical devices used daily, such as styling tools and washing machines.
• Operating hours, with extended hours leading to higher energy consumption.
• Seasonal changes affecting heating and cooling needs.
• Energy efficiency of appliances and lighting systems.
• Tariff type and contract terms with the energy supplier.

How to compare tariffs

When comparing energy tariffs for your beauty salon, consider the following checklist:

• Assess your salon's energy consumption patterns to identify peak usage times.
• Look for flexible tariffs that align with your operating hours and peak periods.
• Check if there are any additional fees or charges, such as standing charges.
• Consider green energy tariffs if sustainability is important to your business ethos.
• Read customer reviews and ratings for different energy suppliers.

Gas or electricity: what matters most

For beauty salons, electricity is usually the primary energy source, powering essential equipment like hairdryers, styling tools, and lighting systems. While gas may be used for heating, especially in larger salons with significant space heating requirements, the reliance on electricity is generally higher. Considering the specific needs of your salon, it might be beneficial to focus on electricity tariffs that offer the most cost-effective solutions for your business.

How switching works

The process of switching energy suppliers for your beauty salon can be straightforward. Here are the steps:

1. Evaluate your current energy usage and determine your needs.
2. Research and compare different energy tariffs available to find the best fit.
3. Contact your chosen new supplier to initiate the switch.
4. Provide necessary information such as your current energy usage and contract details.
5. Ask your new supplier for the confirmed start date; your supply continues while the switch goes through.

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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