This is a collaborative post
Different businesses use different amounts of energy based on their industry. On average, all companies use at least between 15,000 kWh and 20,000 kWh of energy per year. However, this number can vary based on the size of the business.
Since energy prices have peaked, businesses are finding themselves paying more for energy. Many factors affect the price of energy, but to check if your business is paying more than it should, you can compare business energy costs online.
Below, we will discuss how much energy a business uses on average.
Average Usage per Business Type
The larger the business, the more energy it will use. On average, micro-businesses use between 5,000 and 15,000 kWh of electricity and the same amount of gas annually.
For small businesses, the average energy usage for both gas and electricity is between 15,000 kWh and 25,000; gas can be totalled to a maximum of 30,000 kWh.
Medium-sized businesses can use an average of between 25,000 and 50,000 kWh, and for gas, the average totals between 30,000 and 65,000 kWh.
Large businesses will use, on average, between more than 50,000 kWh and more than 65,000 kWh.
How is Energy Charged to Businesses?
The bill depends on how much energy you have used during the month. Different external factors will affect the bill’s pricing each month, for example, the type of tariff your business is on and extra costs like government levies and VAT that have been charged to the bill.
Once you receive the energy bill, you can check to see the unit cost measured in kilowatt-hours (kWh) and the amount charged per unit used.
There is also a standard charge on the bill, which is a flat rate daily for the supply of energy sent to your business, whether energy was used or not.
Average Cost of Electricity
Average Electricity per kilowatt hour in the UK (these prices are correct and updated in April 2024) (Millet, 2021)
The prices are based on business size, per kWh, and the electricity standing charge per day.
- Microbusiness: 26.0p kWh and 53.3p standing charge
- Small business: 24.9 kWh and 76.5p standing charge
- Medium business: 25.0p and 95.4p standing charge
- Large business: 24.1p and 78.1p standing charge
Energy Usage Based on the Type of Business
The biggest energy consumers in the UK are based on the following industries and their combined annual usage.
- Public Administration- 64,883,770 MWh
- Chemical manufacturing- 40, 728, 260 MWh
- Mineral products manufacturing- 30,028,660 MWh
- Commercial and miscellaneous services- 169,972,450 MWh
- Manufacturing and industrial services- 42,042,450 MWh
- Food, drink, and tobacco manufacturing- 34,506,210 MWh
- Agriculture- 17,503,150 MWh
- Iron, Steel and Metal manufacturing- 17,410,110 MWh
- Printing and publishing- 21,294,530 MWh
- Mechanical engineering- 17,596,190 MWh
These prices were average for energy usage before the energy crisis in the UK, but we can see how they were determined and how companies were billed.
- Hair Salon – 13.42p kWh, standing charge 26.70p and the cost per year was £2,182.
- Small farm- 14.19p kWh, standing charge 24.21p and the cost per year was £2,218
- Coffee Shop- 13.42p kWh, standing charge 26.70p and cost per year was £2.109
- Restaurant- 14.87p kWh, standing charge 25.46p and cost per year £3,067
- Dental Surgery -13.84p kWh, standing charge 27.61p and cost per year £2,176
- News agency- 14.51p kWh, standing charge 24.28p and cost per year £1, 830
Ways to Reduce Energy Consumption in Business
You can reduce energy usage within your business by making a few changes.
You can switch to energy-efficient equipment such as computers and other heavy machinery that uses energy sparingly.
You can encourage your staff members to go green by reducing waste, reusing products and recycling to avoid continued wastage and unnecessary expenses.
Businesses can also install energy-efficient lighting systems can also be to ensure you manage how much energy is used when the lights are on. Consider installing LED bulbs instead of the traditional ones, as they use less energy.
An energy audit can assess how much energy your business consumes and identify areas that could be using more energy than necessary. The audit’s findings can also alert you to any faulty equipment that needs repairs.
Conclusion
Overall, the energy cost will differ between different businesses and the industries they are in. You can measure the average energy by calculating the unit’s price and how much power you are using, adding to the standard daily fee.
Also, remember to use the comparison tool to check your energy supplier rates against other suppliers, which can help you find a much cheaper source of energy for your business.
Sources
https://bionic.co.uk/business-energy/guides/average-energy-usage-for-businesses/
https://blog.constellation.com/2020/12/14/small-business-energy-consumption/
https://uswitchforbusiness.com/business-energy/average-business-electricity-gas-consumption/
https://www.exchangeutility.co.uk/news/what-is-average-business-energy-consumption/
Disclosure: This is a collaborative post