Cleaning company energy suppliers, tariffs and costs

Cleaning companies in the UK have unique energy needs that can significantly impact their operational costs. Understanding these needs and the factors influencing energy consumption is vital for managing expenses effectively. Cleaning businesses often rely on a variety of electrical equipment such as vacuum cleaners, washing machines, and dryers, which contribute to their energy usage profile. Additionally, the need for maintaining optimal working conditions in spaces like laundries and offices can further drive energy consumption. By focusing on energy efficiency and considering the right energy tariffs, cleaning companies can better manage their energy bills, thereby supporting their bottom line and sustainability goals.

How much does energy cost for a cleaning company?

There is no published price list for cleaning companies. What a cleaning company 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 cleaning companies?

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 cleaning companies 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 cleaning companies?

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

Cleaning companies typically have a diverse energy usage pattern. Their operations often require the use of high-power electrical equipment such as industrial vacuum cleaners, pressure washers, and large-scale laundry machines. Besides, maintaining a comfortable working environment with adequate lighting and heating adds to the energy demand. These businesses may experience peak energy usage during specific times of the day, particularly if they operate around the clock or in shifts. It's crucial for cleaning companies to understand these patterns to identify opportunities for energy efficiency and improved cost management.

What affects energy bills for cleaning companies

Several factors can influence the energy bills of a cleaning company, including:

• Type and number of equipment used.
• Hours of operation and peak usage times.
• Energy efficiency of machinery and appliances.
• Building insulation and heating requirements.
• Contract terms with energy suppliers.
• Geographical location and local climate conditions.

How to compare tariffs

When comparing energy tariffs for your cleaning company, consider the following checklist:

• Assess your current energy usage and identify peak times.
• Look for tariffs that offer competitive rates during your peak hours.
• Check for any hidden costs or charges in the contract terms.
• Consider the flexibility of the contract, such as fixed vs variable rates.
• Evaluate the supplier's reputation for customer service and reliability.
• Research any incentives for energy efficiency improvements.

Gas or electricity: what matters most

For most cleaning companies, electricity is the primary energy source due to the reliance on electrical cleaning equipment. However, gas may also be used, particularly for heating purposes or in operations involving large-scale laundry facilities. It's important to balance the cost and efficiency of both gas and electricity to optimise overall energy expenses. Evaluating the specific needs of your operations can help determine the best approach to energy sourcing.

How switching works

Switching energy suppliers for your cleaning company involves several key steps:

1. Review your current energy usage and identify your needs.
2. Research potential suppliers and compare their offerings.
3. Contact your chosen supplier to discuss contract terms and rates.
4. Notify your current supplier of your intent to switch, adhering to any notice periods.
5. Coordinate with both suppliers to ensure a smooth transition with no service interruptions.
6. Monitor your first few bills with the new supplier to confirm expected outcomes.

More business energy guides

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