Vehicle rental company energy suppliers, tariffs and costs

For vehicle rental companies, managing energy consumption efficiently is key to reducing operational costs and improving sustainability. These businesses often operate large fleets and extensive premises, making energy management a significant concern. Whether it's powering electric vehicle chargers, maintaining lighting and heating in offices and garages, or supporting IT infrastructure, energy needs can be diverse and substantial. Understanding the energy usage profile of a vehicle rental company can help identify opportunities for efficiency improvements and improved cost management. YourUtilities.co.uk assists these businesses in comparing energy tariffs, ensuring they compare available options tailored to their unique requirements.

How much does energy cost for a vehicle rental company?

There is no published price list for vehicle rental companies. What a vehicle rental company 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 vehicle rental companies?

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 vehicle rental 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 vehicle rental companies?

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

Vehicle rental companies typically operate with a high energy demand due to the need to power offices, maintenance facilities, and potentially a fleet of electric vehicles. The energy usage pattern includes lighting, heating, and cooling of large spaces, as well as running IT systems and equipment. Additionally, as more companies integrate electric vehicles into their fleets, the demand for electricity increases, especially for charging stations. Understanding these patterns helps in selecting energy tariffs that align with peak usage times and needs.

What affects energy bills for vehicle rental companies

Several factors impact the energy bills of vehicle rental companies, including:

• Size and location of premises, affecting heating and cooling needs.
• Number of electric vehicles and charging stations.
• Operational hours influencing peak energy consumption periods.
• Energy efficiency of equipment and lighting systems.
• Seasonal variations affecting heating and cooling requirements.

How to compare tariffs

To effectively compare energy tariffs, vehicle rental companies should consider the following checklist:

• Identify your peak usage times and needs.
• Assess the potential of renewable energy sources for your operations.
• Look for tariffs that offer flexibility for variable usage patterns.
• Consider the benefits of fixed versus variable rate contracts.
• Evaluate the inclusion of green energy options.
• Check for any additional fees or charges associated with the tariff.

Gas or electricity: what matters most

For vehicle rental companies, the balance between gas and electricity usage largely depends on the facilities and fleet composition. Electricity is increasingly significant, especially with the move towards electric vehicles. However, gas may still play a role in heating larger facilities or workshops. Companies should assess their specific needs and future plans for electrification to determine the right energy mix.

How switching works

Switching energy suppliers can be straightforward for vehicle rental companies by following these steps:

1. Review your current energy contract and identify the end date.
2. Gather data on your energy usage and peak periods.
3. Use an energy comparison service to find suitable tariffs.
4. Contact the chosen supplier to discuss your requirements.
5. Ensure there are no penalties or fees for switching early.
6. Coordinate the switch to ensure continuity of service.

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