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Average Energy Consumption For Small Businesses

Implementing energy efficiency measures helps small businesses. As does shopping around for the best energy rates and our business energy comparison experts are here to help.

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Many small businesses across the UK are feeling the pinch. Cutting costs whenever possible is a great way for businesses to stay competitive.

Rising UK energy costs can put a strain on all sorts of businesses, including shops and cafes. Ensuring you aren’t paying more than you need to for your energy is essential.

The amount of energy needed to run different businesses will vary. Making sure you compare business gas prices and business electricity rates will make running a small business significantly easier.

What Is An SME?

An SME is a small or medium-sized enterprise. The UK and EU have slightly different definitions of what an SME is. The EU states it should be few than 250.

The UK is slightly more complicated. HMRC defines an SME as a business whose turnover doesn’t exceed £100m. It also states the limit for employees is 500.

However, the UK government defines SMEs in a similar way as the EU. Different branches of government differ in how they break this down. The breakdowns are as follows;

A Medium Enterprise will have fewer than 250 employees and a turnover below £25.9m or £50m.

A Small Enterprise will have fewer than 50 employees and a turnover below £6.5m or £10m.

A micro business will have fewer than 10 employees and a turnover below £2m.

Millions of people in the UK are employed by SMEs. More than 95% of UK businesses employ less than 10 people. More than 99% of UK businesses fall into the SME bracket.

Some examples of SMEs in the UK include;

These are just some examples of the many SMEs that can be found in the UK.

How Is SME Energy Usage Measured?

SME business gas and electricity usage is measured by meters. There are many different kinds of meters that SMEs can have.

Gas and electricity meters that need to be read can sometimes mean you will pay estimated bills. Estimations are made based on previous readings. It is possible for you or someone from your business to read the meters for accurate data. Your energy supplier will also send someone to read the meters.

Alternatively, many businesses benefit from smart meters. Smart meters can provide up-to-date and accurate readings. This allows businesses to keep a close eye on their energy use habits.

The data customers receive can help them manage their business’s energy use. This can help them make changes to reduce gas and electricity bills.

Your electricity usage will be shown in kWh (kilowatt hours.) A kWh is the energy that would be used to power 1,000-watt appliances for an hour.

Gas bills typically explain calculations. Gas is measured in cubic feet (ft3) or cubic meters (m3). This is typically converted to kWh for your bill.

Many smart meters allow customers to see their energy usage in terms of how much they have spent. This is a much easier way for people to understand the impact of their energy use.

It is also a great way for small businesses to budget accordingly based on their energy bills.

What Is The Average Business Gas Consumption?

Gas consumption will vary based on the business type. For example, you could expect a cafe to use significantly more gas than a small clothes shop. In some cases, shops might not require a gas supply.

The following figures show the average business energy consumption of gas;

  • Microbusinesses will typically use between 5,000 kWh to 15,000 kWh per year.
  • Small businesses will average from 15,000 kWh to 30,000 kWh per year.
  • Medium business can expect annual gas usage to vary from 30,000 kWh to 65,000 kWh.

What Is The Average Business Electricity Consumption?

All SME businesses will have some level of electricity consumption. Like gas usage, the amount of electricity used will vary depending on the business.

Some businesses might need electricity to light the premises. Others may require a constant electricity supply for refrigeration or computers.

The average business energy consumption of electricity in the UK is as follows;

  • Microbusinesses will typically use between 5,000 kWh to 15,000 kWh per year.
  • Small businesses will average from 15,000 kWh to 25,000 kWh per year.
  • Medium business can expect annual gas usage to vary from 25,000 kWh to 50,000 kWh.

Business electricity price comparison will help to lower bills. Keep reading for the best ways to improve efficiency.

What Is An Average Business Energy Bill?

The average cost of SME business energy bills will vary based on multiple factors.

The bills will depend on the levels of gas and electricity used at the business. Your existing tariff will also play a significant role in the overall cost.

The unit cost of your bill will show how much energy you have used. The cost of this will depend on the rate you have agreed with your supplier.

The standing charge is a flat rate that is charged to get the energy to your premises. This will be payable even if no energy is used.

SME businesses will be able to choose from fixed rate or variable tariffs.

A fixed-rate business energy tariff will let you know exactly how much you will pay per unit of energy. This can be a great option and save you money should the cost of energy rise.

Alternatively, variable rates move with current energy costs. This is beneficial if energy costs decrease.

You will have to decide when agreeing on a deal which tariff will suit you best.

How To Lower Your Business Energy Bills?

As UK energy prices have risen dramatically in recent months, exploring the best ways to reduce your business energy bills is essential.

There are lots of ways to reduce business energy usage. One of the best ways to do this is by conducting an audit of business energy usage.

An audit will determine how much energy you are using at different points of the day. It will also show where this energy is being used.

This allows businesses to implement energy-efficient measures to reduce costs.

You can check with your energy provider for deals minimising energy usage during peak times. This can also help businesses save money.

How To Reduce Your Average Business Energy Bills?

Comparing energy suppliers can be another great way to reduce business energy bills. Finding the best gas and electricity rates will play a significant part in reducing average business energy prices.

Exploring the market can be a great way for a medium or small business to enjoy energy savings. There are lots of energy suppliers to choose from in the UK. Because of this, it can be challenging to find the best gas and electricity energy deal.

Thankfully, All businesses should look at ways of reducing costs. Spending more than you need to is bad business. This much is obvious.

Business Energy Comparison offers SME businesses an excellent way to find the best supplier for their needs.

Comparing suppliers can be an arduous task. We are on hand to help you every step of the way. We compare the best energy suppliers to find great business gas and electric energy deals on the market.

How To Lower Your Average Business Energy Usage?

Lowering your average business energy consumption should be a priority for all businesses. Not only will it help to reduce your business energy bill, but it will also improve your business’s green credentials.

There are a lot of measures that can be taken to reduce the average business energy consumption of SMEs.

Energy audits determine aspects of the business that can be improved. Using energy-efficient lighting and closing doors can be surprisingly effective. This is a way for a small or medium-sized business to save money.

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Ways To Save Energy

Reducing your average business energy consumption will minimise energy waste.

Energy efficiency measures that reduce business energy consumption will help. These include using energy-efficient lighting and equipment. This will help to lower how much energy you use to carry out tasks.

Having sensors that ensure lights are off if there is nobody in the area can help reduce energy consumption.

Switch off electrical appliances rather than leave them on standby. This is another great way to minimise energy waste.

Using a thermostat that can be programmed can ensure you don’t waste heat. It will help keep shops and offices at an optimal temperature when people are in them. It can also ensure the heating doesn’t come on in the evening when nobody is there.

Insulation and double glazing in workplaces can make a significant difference in heat loss.

Taking the time to speak with other staff members will help to get everyone pulling in the right direction. Even small steps like ensuring a kettle aren’t full when boiling can make a difference over the course of a year.

Which Electrical Items Use The Most Energy In SMEs?

Conducting an energy audit of your business will help to pinpoint the biggest energy users.

To give you a better idea of what to look out for, the following items have been pinpointed as some of the biggest energy users;


Lighting can be a big expense for SMEs. Using energy-saving LED lightbulbs and motion sensors can help to reduce costs.

Temperature Control Systems

Heating during the winter and air conditioning during the summer can be expensive. This can be a significant issue for small and medium-sized businesses.

Using controllable thermostats will help. Ensuring doors and windows are kept closed can also help to reduce energy consumption and costs.

Printers and Copiers

Many industries regularly use printers and copiers. Transforming into a paperless business can help to reduce energy consumption. Other costs for paper and ink will also be reduced.


Most companies use computers for something. Ensuring they are turned off at night rather than leaving them on standby can help with energy savings.


Small shops with refrigerated sections will find energy costs to be high. They will need to be kept on overnight to protect products.

The best way you can ensure you aren’t wasting energy is by investing in energy-efficient appliances.

Business Energy comparison

SME businesses can have relatively tight margins. Ensuring average business gas and electricity prices are as low as possible is essential.

Reducing energy consumption should be a major part of this. Using smart meters and conducting an audit to make sure the workplace and workforce are as efficient as possible can help with this.

Reducing energy consumption and comparing suppliers are the best ways to reduce costs.

Finding an energy supplier that offers competitive business energy prices can be challenging.

Business Energy Comparison can check with the best business energy suppliers in the UK to get you great rates.

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Business Energy Comparison Services

Business Energy Comparison offers customers an easy way to compare SME energy prices.

Taking the time to individually contact all energy suppliers in the UK to find the best rates would be very time-consuming. This comparison service is a simple way to ensure you get the best rates without wasting time.

You can enjoy free, no-obligation quotes in minutes. Simply enter a little information and then browse the best rates to suit your needs.

Our service will help you with every step of switching suppliers. Our team of experts are on hand to provide advice to help you make the right decision.

We work with huge names in the energy sector, including;

Our team of experts understands that you may have unique business needs. We take the time to consult with you to find out how to find the best energy deals for you.

Finding the best supplier will help to reduce your average business gas and electricity bills.

Taking the time to explore our advice on how to reduce energy consumption will also help.

Final Thoughts

Rising energy costs have been big news for businesses and domestic energy users. Small and medium-sized businesses have found that it is more important than ever to find the best energy deal for their needs.

There are many great business energy suppliers on the market. Allowing Business Energy Comparison to find the most suitable deals can help to save you time and money.

Exploring ways to reduce energy consumption has also become a priority. This has helped businesses become more energy efficient.

Government initiatives aim to reduce average energy consumption. Businesses can benefit by adhering to them.

While most initiatives are in place to reduce energy waste and carbon footprints, the fact they save businesses money can be a bonus.

Frequently Asked Questions

What quick tips can help an SME reduce energy consumption?

Taking a walk around the premises at the end of the day to ensure lights and unessential appliances are switched off can make a big difference.

This should only take a couple of minutes but can help you make considerable savings over time.

Can energy consumption cause SMEs to fail?

Excessive energy consumption can be a contributing factor to the failure of an SME.

The main reasons an SME may fail is down to poor planning and exceeding budgets.

Ensuring your energy use is well planned out with minimal wastage will help to reduce bills.

Taking the time to implement energy efficiency techniques in the workplace can be helpful.

Finding the right energy supplier is essential. It ensures your business doesn’t spend more on average business electricity and gas rates.

How can I check current energy prices?

SME business energy customers on variable tariffs can keep up to date with current energy prices by checking the Ofgem website.

Customers that use a smart meter can also enjoy up-to-date information and data that shows what they are paying for their energy.

If you have concerns about how much you are paying, you should speak with your existing provider.

In some cases, switching providers can help to save you money on business gas and business electricity rates. You may be obliged to pay a charge to leave a contract early.

It is worth checking whether paying this to leave will still be worth it. Paying the charge can lead to lower average business electricity and gas prices.

Can small businesses benefit from the energy price cap?

No, there isn’t a price cap in the UK for business energy. Business energy customers should keep in regular contact with their suppliers for updates.

Regularly checking government sites will also help you keep up to date with any schemes in place.

Are smart meters expensive?

Smart meters will vary in price depending on your energy supplier. Many offer free installation and absorb the cost of the meter across your energy bills.

Many energy suppliers encourage customers to switch to smart meters. This is because it takes away the need for them to send engineers out to read meters. This helps them cut costs in the long run.