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 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 greengrocer 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 greengrocer 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 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?

No supplier specialises in greengrocers 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 Greengrocer

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 bills for Greengrocer

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 vs electricity considerations

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.

Switching process overview

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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