Convenience store energy suppliers, tariffs and costs

Convenience stores are an integral part of local communities, offering quick access to a wide range of products. These businesses typically operate for extended hours, which can lead to significant energy consumption. Understanding the energy needs of a convenience store is crucial to managing costs effectively. By making informed decisions about energy consumption and suppliers, convenience store owners can optimise their operations and reduce expenses. This page provides insights into the energy usage patterns of convenience stores, factors affecting their energy bills, and tips on comparing tariffs to find the best energy deals available.

How much does energy cost for a convenience store?

There is no published price list for convenience stores. What a convenience store 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 convenience stores?

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 convenience stores 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 convenience stores?

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

Convenience stores generally have a consistent energy usage pattern due to their long hours of operation, often extending late into the night. Energy consumption is primarily driven by refrigeration units, which must run continuously to keep products fresh. Additionally, lighting, heating, and air conditioning systems contribute significantly to overall energy usage. It's important for convenience store owners to be aware of the seasonal variations that can affect energy consumption, such as increased heating needs in winter and cooling in summer.

What affects energy bills for convenience stores

Several factors can influence the energy costs for a convenience store, including:

• Operating hours: Longer hours mean more energy usage.
• Refrigeration needs: The number and efficiency of refrigeration units can significantly impact bills.
• Location: Energy rates can vary depending on the region.
• Insulation: Poor insulation can lead to higher heating and cooling costs.
• Energy efficiency: The use of energy-efficient equipment can manage costs effectively.

How to compare tariffs

When comparing energy tariffs for a convenience store, consider the following checklist:

• Identify the store's peak energy usage times.
• Check contract terms for flexibility and exit fees.
• Consider fixed vs. variable rate tariffs based on risk tolerance.
• Look for tariffs that offer renewable energy options.
• Evaluate customer service reviews and supplier reliability.

Gas or electricity: what matters most

For convenience stores, electricity is typically more critical than gas, as it powers essential components such as lighting, refrigeration, and electronic payment systems. However, gas may still be important for heating, especially in cooler months. Store owners should assess their specific needs to determine whether a dual-fuel option or separate electricity and gas suppliers would be more cost-effective.

How switching works

Switching energy suppliers for a convenience store can be straightforward with these steps:

1. Review current energy usage and identify needs.
2. Research and compare available tariffs.
3. Contact the new supplier to arrange a switch.
4. Provide the necessary information and confirm the switch date.
5. Conduct a final meter reading on the switch date to ensure accurate billing.

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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