Refrigerated transport depot energy suppliers, tariffs and costs

Refrigerated transport depot businesses play a crucial role in the supply chain by ensuring that perishable goods are transported at the correct temperatures. The energy requirements for such operations can be substantial due to the need for consistent cooling and transportation logistics. Effective energy management is critical not only for maintaining the quality and safety of transported goods, but also for managing operational costs. Businesses in this sector must carefully consider their energy contracts to ensure they are both cost-effective and reliable, supporting the 24/7 nature of refrigerated logistics. The choice of energy provider and tariff can significantly influence overall business efficiency and sustainability efforts.

How much does energy cost for a refrigerated transport depot?

There is no published price list for refrigerated transport depots. What a refrigerated transport depot 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 refrigerated transport depots?

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 refrigerated transport depots 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 refrigerated transport depots?

There is no single answer. Suppliers price business contracts individually rather than publishing standard tariffs for refrigerated transport depots, 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 refrigerated transport depots use energy

Refrigerated transport depots have a unique energy usage profile, primarily driven by the need to maintain specific temperatures for stored and transported goods. This typically involves significant electricity consumption to power refrigeration units, both stationary and mobile. Additionally, facilities often require energy for lighting, security systems, and office operations. The demand for energy can vary depending on the volume of goods handled, ambient temperatures, and operational hours. Efficient energy management is essential to balance the continuous power requirements with cost considerations.

What affects energy bills for refrigerated transport depots

Several factors influence the energy bills for refrigerated transport depots:

• Energy efficiency of refrigeration units and insulation quality.
• Volume and frequency of goods being refrigerated and transported.
• Seasonal temperature fluctuations affecting refrigeration load.
• Operational hours and peak energy demand periods.
• Contract terms and pricing structures with energy suppliers.
• Use of energy-saving technologies and practices.

How to compare tariffs

When comparing energy tariffs for your refrigerated transport depot, consider the following checklist:

• Assess current energy usage patterns and identify peak demand times.
• Research different tariff types, such as fixed-rate versus variable-rate.
• Evaluate the benefits of time-of-use tariffs if applicable.
• Check for any available incentives for energy efficiency improvements.
• Consider the contract length and any associated exit fees.
• Ensure the supplier has a reliable customer service track record.
• Review the potential for integrating renewable energy options.

Gas or electricity: what matters most

For refrigerated transport depots, electricity is typically the primary energy source due to its role in powering refrigeration systems and other critical operations. Gas may play a role in heating and other auxiliary functions, but the emphasis often remains on electricity due to the need for reliable and continuous power supply. Businesses should evaluate their specific operational needs to determine the optimal balance between gas and electricity usage.

How switching works

Switching energy suppliers for a refrigerated transport depot involves several key steps:

1. Review your current energy contract and identify the end date.
2. Gather data on your current energy usage and costs.
3. Research and compare potential new suppliers and tariffs.
4. Contact the chosen supplier to initiate the switch.
5. Provide any necessary documentation and confirm the switch date.
6. Ensure there is no disruption to your energy supply during the transition.
7. Monitor your first few bills to confirm the new tariffs are correctly applied.

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