Electrician’s business energy suppliers, tariffs and costs

Electrician businesses in the UK play a crucial role in ensuring that electrical systems are safe, functional, and efficient. As such, managing energy consumption is pivotal not only to keep operational costs down but also to ensure the sustainability of the services provided. Understanding the unique energy needs and patterns of electrician businesses can lead to more informed decisions when selecting energy providers and tariffs. From the tools and equipment used to the nature of the work, energy considerations can vary significantly. This guide aims to provide electricians with insights into their energy usage, factors impacting their bills, and how to effectively compare and switch energy tariffs.

How much does energy cost for an electrician’s business?

There is no published price list for electricians. What an electrician’s business 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 electricians?

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 electricians 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 electricians?

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

Electrician businesses typically have unique energy usage patterns that differ from other sectors. The energy consumption primarily depends on the scale of operations and the type of services provided. For instance, independent electricians may have lower energy needs compared to larger firms with multiple employees and a fleet of vehicles. Equipment such as power tools, lighting, and diagnostic devices are common and essential, contributing to daily energy usage. Additionally, the dependence on electricity is significant, although some businesses might use gas for heating purposes in workshops or storage facilities. Understanding these patterns is crucial for optimising energy efficiency and selecting the right tariff.

What affects energy bills for electricians

There are several factors that can influence the energy bills for electrician businesses:

• Seasonal demand: More projects during certain times of the year can increase energy consumption.
• Equipment efficiency: Older tools and equipment can consume more energy.
• Work locations: Travel to various sites can affect fuel and energy costs.
• Workshop size: Larger spaces may require more energy for lighting and heating.
• Operational hours: Longer working hours can lead to higher energy usage.

How to compare tariffs

When comparing energy tariffs, electricians should consider the following checklist:

• Review current energy usage to understand your needs.
• Compare fixed-rate and variable-rate tariffs to find the most suitable option.
• Check contract lengths and any associated early termination fees.
• Look for potential discounts or incentives for energy-efficient businesses.
• Consider customer service ratings and support from providers.
• Evaluate any additional services, such as energy audits or smart meters.

Gas or electricity: what matters most

For electrician businesses, electricity is typically more crucial than gas due to the nature of the work, which relies heavily on electrical tools and equipment. While some workshops may use gas for heating, the primary focus remains on efficient electricity usage. However, understanding both energy sources can help in creating a balanced and cost-effective energy management strategy, especially if the business has office or storage facilities.

How switching works

Switching energy providers can be a straightforward process for electrician businesses:

1. Assess your current energy usage and identify areas for improvement.
2. Research and compare potential new providers and tariffs.
3. Notify your current provider of your intention to switch, if required.
4. Provide the new provider with necessary details to set up the service.
5. Confirm the switch date and ensure all equipment is compatible with the new service.

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