Takeaway energy suppliers, tariffs and costs

Takeaway and fast food businesses in the UK face unique energy challenges due to their high energy consumption and need for efficiency. From powering kitchen appliances to maintaining comfortable dining environments, energy costs can be a significant part of operational expenses. Understanding your energy needs and finding the right tariff can help manage these costs effectively. By comparing business energy suppliers, takeaway and fast food outlets can optimise their utility expenses and improve their bottom line. Whether you rely more on electricity or gas, knowing where and how energy is used can lead to smarter energy management and potentially lower energy bills.

How much does energy cost for a takeaway?

There is no published price list for takeaways and fast food outlets. What a takeaway 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 takeaways and fast food outlets?

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 takeaways and fast food outlets 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 takeaways and fast food outlets?

There is no single answer. Suppliers price business contracts individually rather than publishing standard tariffs for takeaways and fast food outlets, 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 takeaways and fast food outlets use energy

Takeaway and fast food establishments typically experience high energy usage due to their reliance on various kitchen equipment such as fryers, ovens, and refrigeration units. These businesses often operate for extended hours, including late at night, which can contribute to higher energy consumption. Energy demand tends to peak during meal times, requiring efficient energy management to ensure smooth operations. Additionally, lighting and heating or cooling systems contribute to overall energy usage, making it crucial for these businesses to monitor their energy consumption patterns closely.

What affects energy bills for takeaways and fast food outlets

Several factors can influence the energy bills of takeaway and fast food businesses:

• Operating hours: Extended opening times can increase energy use.
• Equipment efficiency: Older appliances may consume more energy.
• Seasonal demand: Heating in winter and cooling in summer can affect bills.
• Number of appliances: More equipment means higher energy usage.
• Energy tariffs: The type of contract and tariff rates impact costs.

How to compare tariffs

When comparing energy tariffs for your takeaway or fast food business, consider the following checklist:

• Review current energy usage and identify peak times.
• Check if fixed or variable tariffs suit your business model.
• Consider green energy options if sustainability is a priority.
• Look for tariffs with flexible terms or no exit fees.
• Assess customer service ratings of potential suppliers.

Gas or electricity: what matters most

For takeaway and fast food businesses, the choice between gas and electricity depends on the specific needs and setup of the establishment. Gas is often preferred for cooking due to its instant heat and cost-effectiveness, while electricity is essential for lighting, refrigeration, and some cooking appliances. Balancing the use of both fuels can help manage costs and improve energy efficiency. Evaluating your business's reliance on each can guide decisions on tariff selection and energy management strategies.

How switching works

Switching energy providers for your takeaway and fast food business involves several steps:

1. Gather your current energy usage data and tariff details.
2. Research and compare energy providers and tariffs.
3. Select a new provider and agree on a contract.
4. Notify your current provider of the switch.
5. Ensure the switch is seamless by coordinating with both providers.

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.

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