Poultry farm energy suppliers, tariffs and costs

Poultry farms in the UK require a reliable and efficient energy supply to maintain optimal operations and ensure animal welfare. Energy is a critical component of poultry farming, affecting everything from lighting and heating to feeding systems. Due to the intensive nature of poultry farming, which often involves round-the-clock care and the need for specific environmental conditions, energy costs can represent a significant portion of operational expenses. Therefore, understanding energy usage and finding the right tariff is essential for managing costs effectively. Poultry farmers must consider various factors such as the size of the farm, the type of poultry, and the specific needs of their facilities when evaluating their energy options.

How much does energy cost for a poultry farm?

There is no published price list for poultry farms. What a poultry farm 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 poultry farm 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 poultry farm 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 poultry farms 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 poultry farms?

No supplier specialises in poultry farms 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 Poultry farm

Poultry farms typically have a unique energy usage pattern that includes high demand for electricity to power lighting systems, ventilation, and automated feeding systems. Heating is also crucial, especially in colder months, to maintain the right temperature for bird health and productivity. The use of incubators and other specialised equipment further increases energy consumption. Farms may operate on a continuous basis, leading to a consistent and high energy demand. Understanding these patterns is vital for selecting an appropriate energy tariff that aligns with the farm's operational needs.

What affects bills for Poultry farm

Several factors influence the energy bills of a poultry farm, including:

• The size and scale of operations, as larger farms typically consume more energy.
• Seasonal variations, with higher heating demands in winter months.
• The efficiency of equipment and systems used on the farm.
• Energy prices and the specific tariff plan chosen.
• Government incentives or grants for energy efficiency improvements.

How to compare tariffs

When comparing energy tariffs, poultry farms should consider the following checklist:

• Assess your current energy usage patterns and requirements.
• Identify peak and off-peak usage times to find suitable tariffs.
• Look for flexible contracts that accommodate your farm's changing needs.
• Consider the benefits of fixed versus variable rate tariffs.
• Check for any available incentives or discounts for renewable energy use.

Gas vs electricity considerations

For poultry farms, electricity is often more significant due to its role in powering lighting, ventilation, and automated systems. However, gas may be used for heating purposes, especially in larger operations. The choice between gas and electricity will depend on the specific needs of the farm and the availability of each resource. Evaluating the cost-effectiveness and efficiency of each option is crucial for maintaining profitability.

Switching process overview

The process of switching energy suppliers for a poultry farm generally involves the following steps:

1. Review your current energy contract and note any exit fees.
2. Compare alternative tariffs and select the most suitable option.
3. Contact the new supplier to initiate the switch.
4. Provide meter readings on the day of transfer to ensure accurate billing.
5. Confirm the switch has been completed without any disruption to energy supply.

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