Haulage or logistics company energy suppliers, tariffs and costs

In the dynamic industry of haulage and logistics, managing operational costs is crucial to maintaining competitiveness and profitability. A significant component of these costs is energy consumption, which powers everything from vehicle fleets to warehouses and offices. Understanding the unique energy needs of a haulage and logistics company is essential for crafting effective strategies to optimize usage and reduce expenses. While energy efficiency can lead to improved cost management, selecting the right energy tariff can further enhance financial performance. This page explores the considerations haulage and logistics companies should keep in mind when managing their energy consumption and choosing the right energy tariffs.

How much does energy cost for a haulage or logistics company?

There is no published price list for haulage and logistics companies. What a haulage or logistics company 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 haulage or logistics company 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 haulage or logistics company 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 haulage and logistics companies 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 haulage and logistics companies?

No supplier specialises in haulage and logistics companies 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 Haulage and logistics company

Haulage and logistics companies typically exhibit a diverse energy usage profile that includes both direct and indirect energy needs. Direct energy usage primarily comes from the fuel required to power vehicle fleets, which can be a major component of overall energy consumption. Indirect energy usage involves the electricity needed for offices, warehouses, and distribution centres, where lighting, heating, and IT equipment are significant consumers. Optimizing energy efficiency in these areas can lead to substantial operational cost reductions. Understanding these usage patterns helps in identifying areas for potential options and efficiency improvements.

What affects bills for Haulage and logistics company

Several factors influence the energy costs for haulage and logistics companies:

• Fleet size and fuel efficiency: Larger fleets with less efficient vehicles will have higher fuel consumption.
• Warehouse energy needs: The size and operational hours of warehouses can significantly impact electricity bills.
• Seasonal demand: Energy needs may fluctuate with seasonal business peaks.
• Route planning: Efficient route planning can reduce fuel consumption.
• Contract terms: Long-term energy contracts might offer stability but could lack flexibility.

How to compare tariffs

When comparing energy tariffs, haulage and logistics companies should consider the following checklist:

• Assess current energy usage patterns to understand peak times and overall consumption.
• Investigate flexible tariffs that might offer benefits for off-peak usage.
• Evaluate the potential for renewable energy tariffs to meet sustainability goals.
• Check for additional services or discounts offered for large energy consumers.
• Consider the length and terms of the contract to ensure it aligns with business needs.

Gas vs electricity considerations

For haulage and logistics companies, electricity is often the primary energy concern, particularly for warehouses and office spaces requiring lighting, heating, and equipment operation. However, gas may also play a role, especially in heating large spaces or running specific equipment. The decision to focus on electricity or gas depends largely on the specific needs of the business and the infrastructure in place. Assessing the balance between these energy types can help identify more effective energy management strategies.

Switching process overview

Switching energy providers involves several steps:

1. Review your current energy contract to understand any termination fees or notice periods.
2. Gather data on your energy consumption to help compare new tariffs accurately.
3. Research potential providers and tariffs that meet your business’s specific needs.
4. Contact the chosen provider to initiate the switch and provide necessary documentation.
5. Coordinate the switch date to ensure minimal disruption to your operations.
6. Confirm the switch and monitor your first few bills to ensure accuracy.

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