Which Business Types Pay More for Energy?

As you’ll know, running a small business comes with many costs, and energy is one of the big ones. But not all companies use gas and electricity in the same way. Some naturally use more power because of their processes, equipment or operating hours.

If you're an entrepreneur wondering why your bills seem high (or just curious), let’s break down which business types pay more for energy in the UK and why.

Manufacturing

Manufacturers are some of the biggest energy consumers in the UK. Whether running a makeshift workshop in your garden shed or a large-scale food production plant, your machinery needs a lot of power.

For example, bakeries run gas ovens for hours on end, metalworking businesses rely on high-powered welding equipment and plastics manufacturers need energy-intensive moulding machines.

Hospitality

If you're in the hospitality sector, you already know how much business energy can eat into your profits. Restaurants and pubs use energy-hungry appliances like industrial ovens, deep fat fryers and freezers that run all day. Throw in heating, air conditioning and lighting for extended trading hours, and it's easy to see why the energy bills stack up.

Hotels take it a step further by needing hot water and heating for dozens of rooms, plus laundry facilities and sometimes swimming pools and spas - all of which send energy consumption sky-high.

Retail

Shops and supermarkets may not seem like the most obvious significant energy users, but they rack up hefty bills due to lighting, refrigeration and heating systems. However, a small clothing retailer will, of course, use far less electricity than a 24-hour supermarket.

Convenience stores with fridges without doors will pay even more because they have to work extra hard to keep products cool in a warm environment.

Agriculture

Farming may be a traditional British industry, but it's far from low-energy. Dairy farms require milking machines and refrigeration, while chicken farms use heated incubators for eggs. Greenhouses need artificial lighting, temperature control and sometimes hydroponics to grow crops all year round.

Even small-scale producers, like artisan cheesemakers or craft breweries, use a surprising amount of energy for processes like pasteurisation and fermentation.

Technology

With everything going digital and cloud storage rising in popularity, data centres are becoming some of the biggest energy consumers in the UK. Even if you’re not running a massive facility, any business that relies on servers and computers running 24/7 will see an impact on its energy costs.

Small tech startups might not notice this as much, but their energy usage climbs quickly as they grow and start housing more equipment. The cooling systems needed to stop servers from overheating add even more to the bill.

How Can Businesses Save on Energy?

If you run one of these high-energy businesses, don’t worry - there are ways to cut costs.

1. Switch to energy-efficient appliances - More modern equipment often uses less power without sacrificing performance.

2. Heat and cool sensibly - Don’t overheat your workspace in winter or overcool it in the warmer months.

3. Use off-peak tariffs - Some energy suppliers offer lower rates to businesses that consume energy outside peak hours.

4. Consider renewable options - Solar panels or heat pumps can reduce your reliance on the grid.

Powering Down

Some businesses will simply always use more energy than others, but understanding where your most significant expenses are coming from can help you make some smart cost-cutting decisions. Whether you run an artisan bakery, a sprawling farm or a greasy spoon, keeping an eye on business energy usage can help you cut waste and save money.

If you think you're paying too much, it’s always worth shopping around for a better deal. Business energy prices vary, and a better tariff could make a big difference to your bottom line.

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