Home care agency energy suppliers, tariffs and costs

Home care agencies in the UK are integral in providing essential services to individuals in need of personal and medical assistance within their own homes. As these agencies operate with a diverse team of carers and administrative staff, managing energy consumption efficiently is crucial. Whether it's keeping office equipment running smoothly or ensuring the comfort of both staff and clients, understanding and optimising energy usage can significantly impact the operational costs of a home care agency. By identifying specific energy needs and exploring competitive tariffs, agencies can enhance their service delivery while maintaining financial sustainability.

How much does energy cost for a home care agency?

There is no published price list for home care agencies. What a home care agency 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 home care agencies?

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 home care agencies 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 home care agencies?

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

Home care agencies generally operate from an office where administrative tasks are managed, and carers coordinate their daily visits. The energy usage within these offices can vary depending on the number of staff, the hours of operation, and the type of equipment used. Typically, energy consumption revolves around heating, lighting, and powering office electronics such as computers and telephones. Efficient energy management in these areas can contribute to reduced operational costs and a smaller carbon footprint. Understanding these usage patterns allows agencies to tailor their energy strategies effectively.

What affects energy bills for home care agencies

Several factors can influence the energy bills of a home care agency:

• Office size and layout: Larger spaces may require more energy for heating and lighting.
• Operating hours: Extended hours can lead to increased energy consumption.
• Number of electronic devices: More computers and equipment can drive up usage.
• Energy efficiency of appliances: Older, less efficient equipment may consume more energy.
• Seasonal changes: Heating costs might rise during colder months.

How to compare tariffs

When comparing energy tariffs for your home care agency, consider the following checklist:

• Assess your current energy usage to understand your needs.
• Look for tariffs that offer stability and suit your operational hours.
• Consider green energy options to align with sustainability goals.
• Check for any hidden fees or contract terms that may affect overall costs.
• Evaluate customer service ratings of potential suppliers.

Gas or electricity: what matters most

For home care agencies, electricity typically plays a more significant role due to the reliance on electronic devices and office lighting. However, during colder months, gas may become more relevant if used for heating the office space. Balancing the use of both utilities and considering energy-efficient solutions can help manage costs effectively. Agencies should evaluate their specific needs to decide on the appropriate energy mix.

How switching works

Switching energy suppliers for your home care agency can be straightforward by following these steps:

1. Review your current energy contract and note the end date.
2. Research and compare different energy suppliers and tariffs.
3. Contact your chosen supplier to initiate the switch.
4. Provide necessary information such as meter readings and business details.
5. Confirm the switch date and ensure a smooth transition.

More business energy guides

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