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Understanding business energy costs in 2026 is essential for any UK business owner. Whether you operate a micro‑business or a bigger firm, your electricity and gas prices directly affect your operating costs and cash flow.
This guide explains the prices you should expect to pay in 2026, presents the latest data in simple tables, and answers some questions you might have.
What Are the Average Business Energy Prices in 2026?
The average cost of business energy in 2026 depends on your company’s size, how much gas and electricity you consume, and where in the UK you're based.
The most up‑to‑date figures show average prices quoted between 1st and 7th January 2026:
Business size | Annual gas usage | Estimated gas bill | Annual electricity usage | Estimated electricity bill |
Micro Business | 10,000 kWh | £850 | 10,000 kWh | £2,794 |
Small Business | 22,500 kWh | £1,652 | 20,000 kWh | £5,456 |
Medium Business | 47,500 kWh | £3,312 | 40,000 kWh | £11,040 |
Large Business | 65,000 kWh | £4,552 | 55,000 kWh | £14,706 |
How Much Should My Business Pay for Energy in 2026?
When you compare business energy rates, your new prices may not match your previous deal. Particularly if you’ve been on a fixed contract for a while. Though markets have steadied since the spikes of 2022 triggered by Russia’s invasion of Ukraine, rates are still higher than pre‑2021 levels this year.
Your business energy costs will depend on:
Your business size
When you use energy
Your workplace’s efficiency
Your business location
Your meter type
Because business energy contracts are bespoke, and there are no ‘off‑the‑shelf’ tariffs, two companies with similar usage can receive different quotes.
Who is the Cheapest Business Energy Supplier in 2026?
Business energy rates change frequently because energy is bought and sold on the wholesale market. This means the cheapest provider could change on a daily basis, and there is no single cheapest option in 2026.
However, these are the average business electricity and gas rates quoted between 1st and 7th January 2026:
Supplier | Gas unit rate (kWh) | Gas standing charge (daily) | Electricity unit rate (kWh) | Electricity standing charge (daily) |
British Gas | 7.3p | 54.4p | 26.9p | 228.5p |
BG Lite | 6.9p | 72.0p | 28.2p | 52.9p |
EDF Energy | 6.3p | 53.5p | 27.1p | 57.2p |
EON Next | 6.6p | 36.0p | 27.0p | 36.5p |
ScottishPower | 6.2p | 30.8p | 23.4p | 76.1p |
Smartest Energy | 6.4p | 77.7p | 24.5p | 63.5p |
Valda Energy | 6.7p | 42.1p | 24.6p | 128.6p |
Yorkshire Gas & Power | 5.5p | 67.1p | 24.3p | 82.4p |
Yu Energy | 7.2p | 42.2p | 23.9p | 342.7p |
The volatility of the wholesale market and the variance in the business energy prices offered by different suppliers reiterate the importance of comparing your options before making a decision.
What is Affecting Business Energy Prices in 2026?
Several factors are influencing the average rates your business will be quoted this year. These include:
1. Demand for Energy
Energy prices fell during the COVID-19 lockdowns due to the reduced demand from businesses. As demand increases, wholesale costs rise too.
2. Global Events
Political instability, conflicts, trade sanctions, and natural disasters all impact oil and gas production around the world. A dwindling supply pushes prices up.
3. Currency Strength
While the UK has now banned the import of Russian oil and gas, it still imports much of its energy from overseas. This means a strong pound gives British businesses access to cheaper energy. A weak pound means electricity and gas costs in Britain could rise.
4. Weather Conditions
Cold winters increase demand for heat, driving up energy consumption. Low wind speeds reduce the UK’s domestic renewable output, meaning more gas must be used to generate electricity.
5. The Domestic Price Cap
While OFGEM’s cap only applies to households, increases often signal wider market pressure and a knock-on effect for business owners.
6. Infrastructure Costs
These charges include the Climate Change Levy (CCL), VAT, and network charges.
What’s the Difference Between Business and Domestic Energy?
Business electricity and gas work differently from the energy you use at home:
Feature | Business Energy | Domestic Energy |
Tariff type | No off‑the‑shelf tariffs - quotes are bespoke for each business | Standardised tariffs are widely available |
Contract type | Fixed‑term contracts with no early exit | Fixed or variable tariffs with a cooling‑off period and optional exit fees |
Cooling‑off period | No cooling‑off period - contracts are binding | 14‑day cooling‑off period on new contracts |
Switching | Can agree on a contract up to 10 months before your current one ends | Can switch suppliers at any time, but may pay exit fees |
Dual‑fuel | No dual‑fuel deals - gas and electricity are quoted separately | Dual‑fuel deals are available |
Price cap | No price cap - rates are market‑driven and vary by usage and location | Domestic energy prices are protected by the OFGEM price cap |
How Can I Find My Business’s Energy Usage?
Understanding your actual business energy usage can be difficult. That’s why we’ve built a free Business Energy Calculator - a quick, easy tool that shows where your business is using energy and what it’s costing you.
Our calculator helps you:
Estimate your electricity and gas usage based on your sector and equipment
See which appliances and working patterns use the most energy
Identify where waste is happening
Get simple tips to lower your business energy bills
Plan your future energy costs with clearer, more accurate data
Most businesses only look at their total bill, which makes it hard to understand what’s driving the cost. Our tool breaks your usage down into practical, easy‑to‑understand insights.
In Summary
Business energy costs remain higher than pre‑2021 levels
Rates vary widely depending on usage, size, and location
Supplier rates differ significantly - comparing quotes is essential
Micro businesses now pay around £3,600 per year for combined gas and electricity
Large businesses can expect bills above £19,000
