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 optimise 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 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 laundries and dry cleaners?

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?

There is no single answer. Suppliers price business contracts individually rather than publishing standard tariffs for laundries and dry cleaners, 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 laundries and dry cleaners use energy

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 energy bills for laundries and dry cleaners

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 or electricity: what matters most

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 optimise their operations.

How switching works

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. Ask your new supplier for the confirmed start date; your supply continues while the switch goes through.

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

• Metal recycling yard energy quotes
• Waste management facility energy quotes
• Timber merchant energy quotes
• Laboratory and testing facility energy quotes
• Cleaning company energy quotes
• Hotel energy quotes