Co-working space energy suppliers, tariffs and costs

Co-working spaces have become an essential part of the modern work culture, offering flexible and collaborative environments for freelancers, startups, and even established companies. As these spaces cater to a variety of business needs, understanding energy usage is crucial to managing operational costs effectively. Energy considerations for co-working spaces are unique due to their dynamic nature, with fluctuating occupancy levels and diverse requirements from tenants. Balancing these needs while ensuring efficiency can significantly impact the overall sustainability and cost-effectiveness of the space. By understanding and optimizing energy consumption, co-working spaces can offer competitive pricing and a comfortable environment for their users.

How much does energy cost for a co-working space?

There is no published price list for co-working spaces. What a co-working space 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 co-working space 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 co-working space 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 co-working spaces 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 co-working spaces?

No supplier specialises in co-working spaces 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 Co-working space

Co-working spaces typically have a diverse energy usage profile due to the variety of activities and equipment present. These spaces often operate long hours to accommodate different working schedules, leading to extended use of lighting, heating, and cooling systems. Additionally, the presence of multiple electronic devices such as computers, printers, and servers contributes to the energy demand. As tenants may require different levels of energy consumption, co-working spaces must be equipped to handle peak loads efficiently. Understanding these patterns can help in selecting the right energy plan to match the operational demands.

What affects bills for Co-working space

Several factors can affect energy bills for co-working spaces, including:

• Occupancy levels: Higher occupancy can lead to increased energy consumption.
• Operating hours: Longer hours mean more energy used for lighting and climate control.
• Type of equipment: High-energy devices like servers and air conditioning systems can increase costs.
• Building insulation: Poor insulation can lead to higher heating and cooling expenses.
• Energy efficiency measures: The presence of energy-saving technologies can reduce overall consumption.

How to compare tariffs

When comparing energy tariffs for co-working spaces, consider the following checklist:

• Assess your current and projected energy consumption patterns.
• Identify peak usage times to find a tariff that matches your needs.
• Check if the tariff offers flexible terms suitable for fluctuating occupancy levels.
• Look for energy plans that support renewable sources if sustainability is a priority.
• Ensure the tariff allows for scalability as your co-working space grows.

Gas vs electricity considerations

Co-working spaces may rely more heavily on electricity due to the need to power numerous electronic devices and maintain lighting throughout the day. However, gas may still play a role in heating the premises, especially in colder months. Spaces that prioritize sustainability might opt for electricity from renewable sources or invest in energy-efficient heating systems. Understanding the balance between gas and electricity usage can help manage costs and improve energy efficiency.

Switching process overview

To switch energy providers for your co-working space, follow these steps:

1. Review your current energy contract for termination terms and notice periods.
2. Gather data on your recent energy usage to provide accurate estimates to new providers.
3. Research and compare new tariffs that match your business needs.
4. Contact the new provider to initiate the switching process, ensuring minimal disruption.
5. Confirm the switch date and any final readings required by your current provider.

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