Supermarket energy suppliers, tariffs and costs

Supermarkets operate in a high-demand business environment, where energy efficiency is crucial for maintaining profitability and sustainability. Given their extensive opening hours, significant lighting, refrigeration, and heating requirements, these businesses consume substantial amounts of energy. Supermarkets must navigate a complex landscape of energy tariffs and suppliers to find solutions that meet their operational needs while controlling costs. In addition to cost considerations, supermarkets are increasingly focused on adopting renewable energy solutions and improving energy efficiency, aligning with corporate social responsibility goals and customer expectations. YourUtilities.co.uk offers guidance and tools to help supermarket businesses effectively compare and select energy plans tailored to their unique demands.

How much does energy cost for a supermarket?

There is no published price list for supermarkets. What a supermarket 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 supermarkets?

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 supermarkets 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 supermarkets?

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

Supermarkets are among the highest energy consumers within the retail sector due to their continuous operation, often spanning 24 hours a day. Their energy usage profile is characterised by significant electricity demand for refrigeration, lighting, and air conditioning. Refrigeration alone can account for a substantial portion of total energy consumption, as perishable goods require precise temperature control. Additionally, supermarkets require robust HVAC systems to maintain a comfortable shopping environment. The energy usage also fluctuates with seasonal changes, impacting heating and cooling needs. Effective energy management strategies are essential to optimise usage and reduce waste.

What affects energy bills for supermarkets

Several factors influence the energy bills of supermarkets, including:

• Operational hours: Extended opening hours lead to increased energy consumption.
• Equipment efficiency: The age and efficiency of refrigeration and HVAC systems directly impact energy use.
• Building insulation: Poor insulation can lead to higher heating and cooling costs.
• Energy tariffs: The choice between fixed or variable tariffs affects cost stability.
• Usage peaks: Peak demand periods often incur higher charges.

How to compare tariffs

When comparing energy tariffs for a supermarket, consider the following checklist:

• Assess your current energy usage patterns and operational hours.
• Identify potential suppliers who cater to large-scale energy needs.
• Compare fixed versus variable tariff options for cost predictability.
• Look for suppliers offering green energy solutions.
• Evaluate contract terms, including length and any potential exit fees.
• Consider supplier reputation and customer service quality.

Gas or electricity: what matters most

Supermarkets typically rely more heavily on electricity due to the demands of refrigeration, lighting, and HVAC systems. However, gas also plays a significant role, particularly for heating and certain cooking operations. The choice between gas and electricity can be influenced by the availability of renewable options and cost considerations. Supermarkets aiming to reduce their carbon footprint may explore electricity from renewable sources.

How switching works

Switching energy suppliers for a supermarket involves several steps:

1. Review your existing energy contract for notice periods and termination fees.
2. Gather data on your current energy usage and costs.
3. Research potential suppliers and compare their offerings.
4. Select a new supplier and agree on a contract.
5. Coordinate with both the new and old suppliers to ensure a seamless transition.
6. Monitor your first few bills to confirm the switch has been successful.

More business energy guides

Return to our business energy hub to explore guides for other industries, or go directly to our business gas or business electricity pages.

Explore other industry guides

• Bakery energy quotes
• Butcher energy quotes
• Greengrocer energy quotes
• Convenience store energy quotes
• Off licence energy quotes
• Fish and chip shop energy quotes