Lettings agency energy suppliers, tariffs and costs

Running a lettings agency involves a myriad of responsibilities ranging from managing properties to maintaining tenant relationships. One often overlooked aspect is the agency's energy consumption, which can significantly impact overall operational costs. Understanding energy usage and finding ways to optimise it can lead to improved cost management and improved efficiency. From lighting and heating in office spaces to the energy consumed by computers and other electronic devices, lettings agencies have unique energy needs. Navigating the energy market to compare available options requires a strategic approach, and being informed about your energy profile is crucial for making smart decisions.

How much does energy cost for a lettings agency?

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

No supplier specialises in lettings agencies 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 Lettings agency

Lettings agencies typically operate from office spaces where the energy usage is concentrated during business hours. The primary energy consumption comes from lighting, heating, and the operation of computers and other office equipment. As agencies often rely heavily on electronic communication and data management, electricity tends to be a significant part of their energy profile. Understanding these patterns can help in selecting the most suitable energy tariffs and managing costs effectively.

What affects bills for Lettings agency

Several factors can influence the energy bills of a lettings agency:

• Office size and layout: Larger spaces or open-plan offices may require more heating and cooling.
• Operational hours: Longer business hours mean extended energy use.
• Energy efficiency of office equipment: Older equipment may consume more energy.
• Seasonal changes: Heating and lighting needs can vary with the seasons.
• Number of employees: More staff can lead to higher energy consumption due to increased use of computers and other electronics.

How to compare tariffs

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

• Review your current energy usage to understand your needs.
• Look for tariffs that align with your peak operational hours.
• Check for fixed versus variable rate options that suit your budget stability needs.
• Consider renewable energy options if sustainability is a priority.
• Read customer reviews and service ratings of potential suppliers.
• Check for any hidden fees or contract terms that might affect your decision.

Gas vs electricity considerations

For most lettings agencies, electricity is the more critical energy source due to the extensive use of computers and office equipment. However, gas might still play a role in heating, particularly in areas where gas heating systems are prevalent. Agencies should evaluate their specific needs and usage patterns to determine the importance of gas versus electricity in their operations. This understanding helps in selecting the appropriate energy plans and managing costs effectively.

Switching process overview

Switching energy suppliers for a lettings agency can be straightforward by following these steps:

1. Collect your current energy usage data and note your contract end date.
2. Research and compare tariffs from different suppliers.
3. Select a new supplier and agree on a contract that meets your needs.
4. Notify your current supplier of your intention to switch.
5. The new supplier will manage the switch, ensuring no disruption to your service.

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