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Average Energy Consumption of a Large Industrial Business

Industrial businesses have varying levels of energy usage, depending on their size and the industry they operate in.

Knowing how much energy your business consumes can help you set energy usage targets, and help reduce energy use, leading to savings on your energy bills.

Continue reading to find out how much gas and electricity a large industrial business, on average, uses. We will also tell you how to reduce your energy consumption and how to reduce monthly utility bills.

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What Is The Average Business Energy Consumption of a Large Industrial Business?

Businesses have, because of their varying sizes, varying number of employees, and varying amount of equipment they use, different energy usage habits.

Additionally, businesses also use different amounts of energy depending on, for example, differences in heating and lighting requirements, and the energy efficiency measures and systems in place. Business energy usage is also affected by its location and hours of operation.

Based on average estimation, large businesses can use upwards of 55,000 kWh of electricity a year and 200,000 kWh or more of gas a year.

How Is Business Energy Consumption Measured?

Business energy consumption is measured in kilowatt-hours (kWh), per unit of gas and electricity consumed.

Energy suppliers consider the number of units of gas and electricity a business consumes over a certain period, and bill businesses for this usage.

What is the average gas consumption for businesses?

UK businesses, depending on their size, have different levels of gas consumption.

  • Micro business: 5,000 – 15,000 kWh
  • Small business: 15,000 – 30,000 kWh
  • Medium-sized business: 30,000 – 65,000 kWh
  • Large business: More than 65,000 kWh

What is the average electricity consumption for businesses?

Businesses of different sizes also have different levels of electricity usage.

  • Micro business: 5,000 – 15,000 kWh
  • Small business: 15,000 – 25,000 kWh
  • Medium-sized business: 25,000 – 50,000 kWh
  • Large business: More than 50,000 kWh
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A business’s commercial energy bill will depend on how much energy, in the form of gas and electricity, it consumes.

Utility bills are also dependent on the type of tariffs a business is on:

  • Unit cost: This is the basic rate businesses pay for each unit of electricity and gas they consume. Unit cost is measured in kWh.
  • Standing charge: Businesses pay this flat daily rate, regardless of whether they use electricity or gas. This fee covers the costs needed to build and maintain the infrastructure that delivers gas and electricity to businesses.

Keep in mind that besides the unit cost and standing charge you pay your energy supplier, you will also pay VAT and government levies on your energy bill.

To reduce energy bills, it’s advised that businesses migrate to a tariff that’s lower than the current unit cost and standing charge it’s on. You will be able to reduce your energy expenses by reducing just one of these rates.

It’s also important to note that the unit cost and standing charge may continually fluctuate, due to different factors including current market volatility.

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What Are The Different Types of Tariffs Available?

Businesses can choose between the following tariffs:

  • Fixed tariff rate: If your business is on a fixed-rate energy deal, you’ll pay a flat rate for every unit of energy consumed. This rate is a great way to ensure that business utility bills remain relatively constant, despite fluctuations in energy prices.
  • Variable rate tariff: The cost per unit of electricity or gas will fluctuate, depending on the current market cost. If market costs increase, so will your tariff. If the cost per unit of energy decreases, your tariff cost will also decrease.

What Is an average business gas bill?

Because of their varying levels of gas consumption and the different rates businesses pay per unit of gas used, their gas bills also differ.

  • Micro business: £1,174 (annual usage of 10,000 kWh)
  • Small business: £2,288 (annual usage of 22,500 kWh)
  • Medium-sized business: £4,541 (annual usage of 47,500 kWh)
  • Large business: £5,967 (annual usage of 65,000 kWh)

What are the average business gas prices per kWh?

On average, this is what businesses, based on their size, can expect per kWh of gas consumed:

  • Micro businesses:
    • Unit price per kWh: 9.8p
    • Daily standing charge: 53.1p
  • Small businesses:
    • Unit price per kWh: 9.1p
    • Daily standing charge: 65.7p
  • Medium-sized businesses:
    • Unit price per kWh: 8.7p
    • Daily standing charge: 111.8p
  • Large businesses:
    • Unit price per kWh: 8.5p
    • Daily standing charge: 121.1p

What Is an average electricity bill?

UK businesses pay different electricity prices, depending on their size:

  • Micro business: £3,223 (annual usage of 10,000 kWh)
  • Small business: £5,485 (annual usage of 22.500 kWh)
  • Medium business: £13,946 (annual usage of 47,500 kWh)
  • Large business: £16,202 (annual usage of 55,000 kWh)

What are the average business electricity prices per kWh?

UK businesses, on average, pay the following rates for their electricity consumption.

  • Micro businesses:
    • Unit price per kWh: 29.9p
    • Daily standing charge: 63.7p
  • Small businesses:
    • Unit price per kWh: 29.3p
    • Daily standing charge: 84.9p
  • Medium businesses:
    • Unit price per kWh: 28.7p
    • Daily standing charge: 85.8p
  • Large businesses:
    • Unit price per kWh: 28.9p
    • Daily standing charge: 84.2p

What are the average business electricity rates for different sectors?

Use the estimates below to get an idea of how much you should expect to pay for your energy consumption, based on the sector you work in.

  • Coffee shop
    • Unit rate: 13.42p
    • Standing charge: 26.70p
    • Annual cost: £2,109
  • Hair salon
    • Unit rate: 13.88p
    • Standing charge: 27.23p
    • Annual cost: £2,182
  • Small farm
    • Unit rate: 14.19p
    • Standing charge: 24.21p
    • Annual cost: £2,218
  • Dental surgery
    • Unit rate: 13.84p
    • Standing charge: 27.61p
    • Annual cost: £2,176
  • Restaurant
    • Unit rate: 14.87p
    • Standing charge: 25.46p
    • Annual cost: £3,067
  • Newsagent
    • Unit rate: 14.51p
    • Standing charge: 24.28p
    • Annual cost: £1,830
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How To Save On Your Business Energy Bills

By carefully managing and improving your business’s energy usage you can reduce energy consumption which helps reduce gas and electricity bills.

  • Carry out an energy audit: By determining exactly how much energy your business uses, and how much it should be using, will give you a clear indication of how much you are overpaying. This also helps business owners know where to cut down on energy consumption.
  • Switch to a better energy deal: This is one of the best ways for businesses to save money on their energy bills. Migrating to more affordable rates will ensure immediate savings on utility bills.
  • Use energy-efficient equipment: Using energy-efficient computers and lighting fixtures can reduce energy consumption, which could lead to savings on your energy bill.
  • Get staff involved in energy-saving initiatives: Encouraging employees to reduce their energy consumption could lead to a business-wide reduction in the amount of electricity and gas that’s consumed. Ask employees to switch off printers, computers and other equipment when not in use.
  • Install energy-generation equipment: Installing solar panels will help you generate electricity which will decrease the amount of electricity you require from suppliers, leading to a reduction in utility bills.
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Compare Commercial Energy Prices With Business Energy Comparison

As discussed, large businesses would, on average, use a lot more gas and electricity than micro-, small- or medium-sized businesses.

To ensure that you are paying business energy prices that are on par with that of similar-sized businesses operating in the same industry, reach out to us to do a business energy comparison. This will help you gauge the amount of electricity and gas you consume, and help you better manage your business’s overall energy consumption.

Talk to your business energy broker about switching energy suppliers, to ensure that your business is in the correct payment bracket, to help reduce your energy bills.

Start your journey and compare business gas and electricity rates with Business Energy Comparison today. Use our price comparison tool and in less time than it takes to make a brew, we’ll compile your best prices from the UK’ s best suppliers.

Frequently Asked Questions

How does my business's location affect my utility bills?

A business that’s located in a city will, on average, pay more for its gas and electricity than a business that’s situated in a rural UK town. Two businesses in the same city would often pay different energy rates, depending on where the business is situated. The differences in costs are related to the differing standing charges applied.

How else can I reduce my business's energy usage?

Adopting and implementing an end-of-the-day closing routine could also help reduce gas and electricity consumption. Urge staff to turn off computers and equipment at the end of the workday, to reduce overnight energy usage.