Greengrocer energy suppliers, tariffs and costs

Greengrocer businesses are a vital part of the UK's retail landscape, offering fresh fruit and vegetables to local communities. These businesses often operate from small to medium-sized premises, where energy consumption can significantly impact overhead costs. Understanding energy needs and efficiently managing consumption is crucial for greengrocers to maintain affordability and sustainability. With refrigeration being a key component of their operation, alongside lighting and occasionally heating, finding the right energy tariff is essential. Greengrocers must consider various factors such as opening hours, equipment usage, and seasonal variations to optimise their energy expenditure. YourUtilities.co.uk provides a platform for greengrocers to compare energy options, helping them to make informed decisions tailored to their specific needs.

How much does energy cost for a greengrocer?

There is no published price list for greengrocers. What a greengrocer 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 greengrocers?

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 greengrocers 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 greengrocers?

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

Greengrocers typically rely heavily on electricity to power essential equipment such as refrigerators and freezers, which are crucial for preserving fresh produce. Lighting also plays an important role, as it not only ensures visibility for customers but also enhances the display of products. Unlike some other businesses, greengrocers may not have high gas consumption unless they possess cooking facilities for value-added products. Energy usage can vary depending on factors like store size, customer footfall, and the variety of products offered. Being aware of peak hours and seasonal demand can help tailor energy consumption strategies to maximise efficiency and manage costs effectively.

What affects energy bills for greengrocers

Several factors can influence the energy bills of a greengrocer:

• Refrigeration equipment efficiency and maintenance.
• Lighting choices, including the use of energy-efficient bulbs.
• Hours of operation and seasonal variations in demand.
• Building insulation and energy efficiency measures.
• Staff training on energy-saving practices.
• Tariff type and contract terms with energy suppliers.

How to compare tariffs

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

• Determine peak operating hours and energy usage patterns.
• Assess the energy efficiency of current equipment.
• Compare fixed and variable rate tariffs to see which suits your business model.
• Check for any additional fees or charges in contracts.
• Look for suppliers offering renewable energy options to enhance sustainability credentials.
• Evaluate the flexibility of contract terms for potential business growth or changes.

Gas or electricity: what matters most

For most greengrocers, electricity is the primary energy concern due to the need for refrigeration and lighting. Gas may play a minor role unless the business involves cooking or heating. Therefore, when assessing energy needs, focus should be on selecting an electricity plan that aligns with the operational demands. However, if gas is used, it is important to ensure that both utilities are optimised for cost and efficiency.

How switching works

Switching energy suppliers can be straightforward if you follow these steps:

1. Review your current energy usage and contract terms.
2. Research and compare potential suppliers using comparison tools.
3. Select a new supplier and agree on a suitable tariff.
4. Notify your current supplier of your intention to switch and confirm the end date.
5. Coordinate the transfer with your new supplier, ensuring all final readings are recorded.
6. Begin receiving energy from your new supplier, monitoring bills for any discrepancies.

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