Plastics manufacturer energy suppliers, tariffs and costs

The manufacturing of plastics is an energy-intensive process that requires careful planning and management to ensure efficiency and cost-effectiveness. As a key sector in the UK economy, plastics manufacturing demands significant energy input for processes like extrusion, injection moulding, and thermoforming. Companies in this industry must balance energy consumption with sustainability goals and cost constraints. Understanding the energy usage patterns and factors influencing costs can help plastics manufacturers optimise their operations and identify opportunities for savings. This is where comparing business energy tariffs becomes crucial, allowing companies to find the most suitable energy solutions for their specific needs.

How much does energy cost for a plastics manufacturer?

There is no published price list for plastics manufacturers. What a plastics manufacturer 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 plastics manufacturer 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 plastics manufacturer 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 plastics manufacturers 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 plastics manufacturers?

No supplier specialises in plastics manufacturers 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 Manufacturing - plastics

In the plastics manufacturing sector, energy consumption is a significant operational consideration. Energy is primarily used for heating and melting raw materials, driving machinery, and maintaining controlled environments for production processes. The energy usage pattern in this industry often involves continuous operations to maintain production efficiency. This means that energy demand can be high and relatively steady, with peaks during periods of increased production. By understanding these patterns, businesses can better manage their energy costs and implement strategies that align with their operational needs.

What affects bills for Manufacturing - plastics

Several factors can influence energy costs for plastics manufacturers:

• Production volume: Higher production levels generally lead to increased energy usage.
• Machinery efficiency: Older, less efficient machines consume more energy.
• Operational hours: Extended operating hours can lead to higher energy consumption.
• Energy tariffs: The type of tariff and contract terms can significantly impact costs.
• Energy management: Effective energy management strategies can reduce unnecessary consumption.

How to compare tariffs

When comparing energy tariffs for plastics manufacturing, consider the following checklist:

• Identify your peak energy usage times and look for tariffs that offer lower rates during these periods.
• Check the contract terms for flexibility and any hidden charges.
• Consider the supplier's reputation and customer service ratings.
• Evaluate the potential for renewable energy options if sustainability is a priority.
• Ensure the tariff aligns with your business strategy and operational demands.

Gas vs electricity considerations

In plastics manufacturing, electricity is often the primary energy source due to its role in powering machinery and equipment. However, gas may also be used, particularly for heating applications. The choice between gas and electricity can depend on the specific processes involved and the availability of energy sources. Manufacturers need to evaluate the cost-effectiveness and practicality of each energy type to determine the best mix for their operations.

Switching process overview

Switching energy suppliers in the plastics manufacturing sector involves several key steps:

1. Review your current energy usage and contract terms.
2. Research and compare available energy tariffs.
3. Contact prospective suppliers for customised quotes.
4. Choose the best tariff and notify your current supplier of the switch.
5. Coordinate with the new supplier to ensure a smooth transition.

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