Laundry or dry cleaner energy suppliers, tariffs and costs

Laundry and dry cleaner businesses are heavily reliant on energy consumption to maintain operations. From washing machines and dryers to pressing equipment and lighting, these businesses require a significant amount of energy to ensure their services are delivered efficiently. Managing energy consumption is crucial not only for maintaining profitability but also for ensuring sustainability. By carefully analysing energy usage and costs, laundry and dry cleaner businesses can find ways to optimize their energy consumption and reduce unnecessary expenses. This page will guide you through understanding your energy needs, factors affecting your bills, and how to effectively compare energy tariffs to find the best fit for your business.

How much does energy cost for a laundry or dry cleaner?

There is no published price list for laundries and dry cleaners. What a laundry or dry cleaner 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 laundry or dry cleaner 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 laundry or dry cleaner 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 laundries and dry cleaners 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 laundries and dry cleaners?

No supplier specialises in laundries and dry cleaners 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 Laundry and dry cleaner

Laundry and dry cleaner businesses typically exhibit distinct energy usage patterns due to the nature of their operations. They require a considerable amount of energy for heating water, running washing machines, dryers, and pressing equipment. Peak energy usage often occurs during daytime business hours when machines are in constant operation. Additionally, maintaining optimal lighting in workspaces and customer areas contributes to the overall energy consumption. Understanding these patterns can help businesses identify opportunities to improve energy efficiency and manage costs effectively.

What affects bills for Laundry and dry cleaner

Several factors can influence the energy bills of laundry and dry cleaner businesses:

• Type and efficiency of appliances used
• Business operating hours and peak times
• Seasonal variations affecting heating and lighting needs
• Energy tariffs and contract terms
• Building insulation and energy efficiency measures

How to compare tariffs

When comparing energy tariffs, it's important for laundry and dry cleaner businesses to consider the following checklist:

• Analyse your current energy usage to understand your needs
• Look for tariffs that offer flexibility in contract terms
• Consider fixed vs variable rate plans
• Check for any additional charges or hidden fees
• Evaluate the customer service and support offered by providers

Gas vs electricity considerations

For laundry and dry cleaner businesses, both gas and electricity play crucial roles. Electricity is essential for running washing machines, dryers, and lighting, while gas may be used for water heating and some drying processes. The choice between gas and electricity will depend on the specific equipment used and the availability of energy sources. Businesses should consider the cost implications and efficiency of using either or both energy types to optimize their operations.

Switching process overview

Switching energy suppliers can be straightforward if you follow these steps:

1. Review your current energy contract to understand any exit fees.
2. Gather detailed information on your current usage and spend.
3. Compare suitable energy tariffs using a comparison service.
4. Contact the chosen provider to initiate the switch.
5. Wait for the switch to complete, which typically takes a few weeks.

More business energy guides

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