HVAC or refrigeration contractor energy suppliers, tariffs and costs

For HVAC and refrigeration contractor businesses, managing energy consumption efficiently is crucial to maintaining profitability and ensuring reliable service delivery. These businesses typically have unique energy demands due to the nature of their work, which often involves running power-intensive equipment such as air conditioning units, refrigeration systems, and various electric tools. Understanding energy usage patterns and staying informed about cost-saving opportunities can help HVAC and refrigeration contractors optimize their operations and manage overheads. With the right energy solutions, these businesses can achieve greater energy efficiency and contribute to a more sustainable environment.

How much does energy cost for an HVAC or refrigeration contractor?

There is no published price list for HVAC and refrigeration contractors. What an HVAC or refrigeration contractor 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, an HVAC or refrigeration contractor 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 an HVAC or refrigeration contractor 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 HVAC and refrigeration contractors 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 HVAC and refrigeration contractors?

No supplier specialises in HVAC and refrigeration contractors 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 HVAC and refrigeration contractor

HVAC and refrigeration contractors typically experience fluctuating energy demands depending on the projects they undertake. Their energy usage is often characterised by the need for high power during installation and maintenance operations. Equipment such as air conditioning units, ventilation systems, and refrigeration units require significant electricity to operate efficiently. Additionally, contractors may use portable power tools and diagnostic equipment on-site, contributing to their overall energy consumption. Because the demand can vary widely based on the size and scope of projects, understanding these patterns is key to managing energy costs effectively.

What affects bills for HVAC and refrigeration contractor

Energy bills for HVAC and refrigeration contractors can be influenced by several factors, including:

• The efficiency and age of the equipment used in installations.
• Frequency and duration of equipment usage during projects.
• Seasonal demand for heating, ventilation, and cooling services.
• Location and climate, affecting heating and cooling needs.
• Tariff choice and contract terms with the energy provider.

How to compare tariffs

When comparing energy tariffs, HVAC and refrigeration contractors should consider the following checklist to ensure they select the best option for their business needs:

• Evaluate the contract length and flexibility.
• Check for any hidden fees or additional charges.
• Consider the availability of green energy options.
• Assess whether the tariff offers a fixed or variable rate.
• Look into any discounts for energy-efficient practices or equipment.

Gas vs electricity considerations

For HVAC and refrigeration contractors, electricity is often more critical than gas, as most of the equipment used in installations and maintenance runs on electric power. However, gas may be relevant for businesses involved in heating system installations. It's vital to balance the use of both energy sources to maximise efficiency and minimise costs. Contractors should evaluate their specific needs to determine the most cost-effective energy mix.

Switching process overview

Switching energy suppliers involves several key steps:

1. Review current energy usage and identify needs.
2. Compare tariffs and select a suitable provider.
3. Contact the new supplier to initiate the switch.
4. Provide necessary business information and meter readings.
5. Wait for confirmation and transition period, typically a few weeks.

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