Brewery energy suppliers, tariffs and costs

Breweries in the UK have unique energy requirements, making it crucial for them to manage energy efficiently to maintain profitability. From the intricate brewing process to the refrigeration of final products, energy is a significant operational cost for any brewery. With the complexities of production and the need for consistent quality, breweries must consider various factors when assessing their energy needs. An effective energy management strategy can help breweries manage costs effectively, improve sustainability, and ensure smooth production processes. This guide will help brewery owners understand their energy usage and explore ways to compare and switch energy tariffs effectively.

How much does energy cost for a brewery?

There is no published price list for breweries. What a brewery 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 brewery 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 brewery 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 breweries 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 breweries?

No supplier specialises in breweries 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 Brewery

Breweries typically have a high energy usage profile due to the energy-intensive nature of brewing processes. Key areas include heating water for mashing, boiling wort, and refrigeration for storing finished products. The production line equipment and lighting also contribute to overall consumption. Additionally, breweries may operate 24/7 to prevent production delays, further increasing energy demands. Understanding these patterns is essential for brewery owners looking to optimise energy use and manage costs effectively.

What affects bills for Brewery

Several factors can influence energy bills for brewery businesses:

• Production scale and frequency: Larger or more frequent batches increase energy consumption.
• Equipment efficiency: Older, less efficient machinery can lead to higher energy use.
• Seasonal demand: Changes in production volume, particularly during peak seasons, can affect energy needs.
• Energy tariffs: The type of tariff plan a brewery is on will impact overall costs.
• Operational hours: Extended production hours contribute to higher energy usage.

How to compare tariffs

When comparing energy tariffs, brewery owners should consider the following checklist:

• Analyse historical energy usage to understand consumption patterns.
• Identify peak usage times to find tariffs with suitable rate structures.
• Research green energy options if sustainability is a priority.
• Check for flexible contracts that accommodate changes in production volume.
• Evaluate potential suppliers based on customer service and contract terms.

Gas vs electricity considerations

Both gas and electricity play crucial roles in brewery operations. Gas is often used for heating during the mashing and boiling phases, making it essential for brewing. Electricity, on the other hand, powers refrigeration systems, lighting, and other equipment. Balancing the use of gas and electricity efficiently can help breweries manage costs and maintain smooth operations. Understanding the proportion of each in your energy mix is key to effective energy management.

Switching process overview

Switching energy suppliers for a brewery involves several steps:

1. Review current energy contract terms and expiry date.
2. Collect data on current energy usage patterns and costs.
3. Research and compare potential energy suppliers and tariffs.
4. Select a new supplier and agree on contract terms.
5. Coordinate with the new supplier to handle the switch, ensuring minimal disruption to operations.

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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