Beauty salon energy suppliers, tariffs and costs

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 is set mainly by how much it uses in a year, because suppliers price by consumption band, and then by contract length, meter type, payment method and credit history. The most recent government figures (first quarter of 2026, provisional) put the average unit price paid by UK non-domestic customers at 24.14p per kWh for electricity and 5.17p per kWh for gas, including the Climate Change Levy and excluding VAT. A year earlier the averages were 25.74p and 5.54p. The smallest sites pay the most per unit: businesses using under 20,000 kWh of electricity a year averaged 35.02p per kWh, and those using under 278,000 kWh of gas averaged 7.48p 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 30 June 2026. Q1 2026 figures are provisional; next update 29 September 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.

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. A site using 15,000 kWh of electricity a year sits in the very small band: 15,000 × 35.02p is about £5,250 a year, or roughly £440 a month before VAT. A site using 60,000 kWh of gas a year: 60,000 × 7.48p is about £4,490 a year, or roughly £375 a month. Because the smallest band pays a much higher unit rate, a beauty salon that moves into the next band by growing, or that sits near a band boundary, can see its per-unit price change noticeably at renewal.

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. Where a site is mixed, 60% or more qualifying use means the whole supply is charged at 5%; 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) and gov.uk VAT rates.

Is a beauty salon a microbusiness?

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?

No supplier specialises in beauty salons or publishes tariffs specific to them. The cheapest supplier for one business is often not the cheapest for the next, because each prices on the consumption band, 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 any out-of-contract rate before signing.

Energy usage profile for Beauty salon

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 bills for Beauty salon

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 vs electricity considerations

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.

Switching process overview

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. Allow for a standard 21-day switching period, during which your energy supply will continue seamlessly.

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