Property management company energy suppliers, tariffs and costs

Property management companies play a crucial role in maintaining and overseeing residential and commercial properties, making energy management a key concern. These businesses are responsible for ensuring that the properties under their care are energy efficient and that tenants are satisfied with their energy services. This requires a comprehensive understanding of energy tariffs, consumption patterns, and the impact of energy efficiency measures. Effective management can lead to significant savings, not just in terms of utility costs, but also in enhancing property value and tenant satisfaction. By navigating the complexities of business energy tariffs, property management companies can optimize energy usage and reduce operational expenses, making their services more competitive and environmentally friendly.

How much does energy cost for a property management company?

There is no published price list for property management companies. What a property management company 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 property management company 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 property management company 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 property management companies 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 property management companies?

No supplier specialises in property management companies 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 Property management company

Property management companies oversee a variety of properties, each with its own energy demands. Typically, the energy usage pattern for these businesses is dictated by the type of property under management, such as residential, commercial, or mixed-use. Residential properties may have consistent energy usage throughout the year, while commercial properties might see fluctuations based on business hours and occupancy rates. Understanding these patterns is vital for property managers to implement effective energy management strategies and negotiate better energy tariffs tailored to the specific needs of their properties.

What affects bills for Property management company

Several factors can influence the energy costs for a property management company:

• Type and size of the properties managed, affecting overall energy consumption.
• Occupancy rates, as higher rates can lead to increased energy usage.
• Seasonal variations, impacting heating and cooling needs.
• Energy efficiency measures employed in the properties.
• Tariff type and contract terms with energy providers.

How to compare tariffs

When comparing energy tariffs for property management, consider the following checklist:

• Assess the specific energy needs of each property under management.
• Examine current energy usage patterns and identify peak usage times.
• Research and compare tariffs from multiple energy suppliers.
• Consider fixed vs variable rate tariffs based on market trends.
• Look for any hidden fees or charges within contract terms.
• Evaluate the environmental impact of potential energy sources.

Gas vs electricity considerations

For property management companies, the choice between gas and electricity often depends on the types of properties managed. Residential buildings might rely more on gas for heating, while commercial properties could use more electricity for operations and air conditioning. Balancing these two energy sources effectively can lead to improved cost management and increased energy efficiency. Understanding the specific needs of each property can help in selecting the right energy mix.

Switching process overview

Switching energy providers can be straightforward if approached methodically:

1. Review existing energy contracts to understand terms and notice periods.
2. Gather detailed energy usage data for accurate comparisons.
3. Research potential suppliers and request quotes based on your specific needs.
4. Choose a new provider and ensure a seamless transition by coordinating with both old and new suppliers.
5. Monitor the switch to ensure all billing and service details are correct post-transition.

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