Laboratory or testing facility energy suppliers, tariffs and costs

Laboratory and testing facilities are unique in their energy requirements due to the specialized equipment and environmental controls needed to ensure accurate results. These businesses often operate around the clock, requiring reliable and consistent energy supplies. As a critical component of their operational infrastructure, energy costs can represent a significant portion of the budget. To manage these expenses effectively, it's important for laboratory managers to understand their energy usage patterns and explore competitive tariffs that meet their specific needs. With the right approach, laboratories can optimize their energy consumption and reduce their carbon footprint while maintaining the high standards necessary for their operations.

How much does energy cost for a laboratory or testing facility?

There is no published price list for laboratories and testing facilities. What a laboratory or testing facility 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 laboratory or testing facility 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 laboratory or testing facility 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 laboratories and testing facilities 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 laboratories and testing facilities?

No supplier specialises in laboratories and testing facilities 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 Laboratory and testing facility

Laboratory and testing facilities have distinct energy usage patterns driven by the need for precision-controlled environments and specialized equipment. These businesses typically require continuous power to support refrigeration units, air filtration systems, and analytical instruments. Additionally, the demand for heating, ventilation, and air conditioning systems (HVAC) is high to maintain stable temperatures and humidity levels. The energy needs can fluctuate based on the type of testing conducted and the hours of operation, often leading to high baseload consumption. Understanding these patterns is essential for optimizing energy efficiency and managing costs.

What affects bills for Laboratory and testing facility

Several factors influence the energy costs for laboratory and testing facilities, including:

• Type and number of equipment used: More sophisticated or numerous devices can increase energy consumption.
• Duration of operation: Facilities running 24/7 will incur higher energy costs.
• Energy efficiency of installed systems: Older, less efficient systems may lead to higher bills.
• Seasonal demand: Changes in temperature can affect heating and cooling needs.
• Contract terms: Fixed vs. variable rate contracts can impact costs based on market fluctuations.

How to compare tariffs

When comparing energy tariffs for your laboratory or testing facility, consider the following checklist:

• Identify your peak and off-peak energy usage times.
• Evaluate the energy efficiency of your current systems and potential upgrades.
• Look for tariffs that offer green energy options to reduce your carbon footprint.
• Consider the length of the contract and any associated terms.
• Seek advice from an energy consultant to understand the best options for your specific needs.

Gas vs electricity considerations

In laboratory and testing facilities, electricity is often more critical than gas due to its role in powering sensitive equipment and maintaining controlled environments. While gas may be used for heating purposes, electricity is essential for operating devices such as centrifuges, spectrometers, and other analytical tools. Deciding between gas and electricity should involve evaluating your specific operational requirements and the potential for integrating renewable energy sources to support sustainability goals.

Switching process overview

Switching energy suppliers for your laboratory or testing facility involves several steps:

1. Review your current energy contract and identify the end date.
2. Collect data on your energy usage patterns and peak demands.
3. Research and compare available tariffs that suit your business needs.
4. Contact potential suppliers to discuss terms and negotiate rates.
5. Coordinate the switch with your current and new suppliers to ensure a seamless transition.

More business energy guides

Return to our business energy hub to explore guides for other industries, or go directly to our business gas or business electricity pages.

Explore other industry guides

• Restaurant energy quotes
• Cafe energy quotes
• Pub energy quotes
• Hotel energy quotes
• B&B and guesthouse energy quotes
• Takeaway and fast food energy quotes