Business Electricity Prices per kWh (October 2026): 24.42p to 38.36p by Business Size

Last updated: Thursday 22 October 2026 (Europe/London).
Next update: when the government publishes its next non-domestic energy price figures, due on 17 December 2026.
By: Switch Editorial Team, Switch Squid Ltd

As of 22 October 2026, the latest government figures put the average business electricity price at 23.97p per kWh excluding VAT and Climate Change Levy, or 24.51p including the levy, for April to June 2026. The smallest businesses paid far more, at 38.36p per kWh including the levy, so a small shop using 15,000 kWh a year would pay about £5,754 before VAT at that rate. Business electricity has no price cap, so compare the unit rate, the daily standing charge and the total yearly cost at your own usage. This SwitchSquid guide shows the latest price per kWh by business size, how to work out your own rate from a bill, and what care homes and HMO landlords should check. If you get quotes through our form, we may be paid by the supplier you choose; it doesn’t change the price you pay.

Sources: DESNZ — gas and electricity prices in the non-domestic sector (tables 3.4.1 and 3.4.2), HMRC — Climate Change Levy rates and Ofgem — get a business energy contract (all checked on 22 October 2026).

Compare business electricity prices per kWh for your sites

• Enter your postcode, current supplier and yearly usage to compare tariffs for each meter

• Care homes and HMOs: tell us which supplies are residential or communal so quotes use the right VAT

• Main limitation: final prices depend on your meter data, usage and credit check, and business contracts have no cooling-off period

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Business electricity prices per kWh by business size

The Department for Energy Security and Net Zero (DESNZ) surveys suppliers every quarter and publishes the average price businesses actually paid, grouped by how much electricity they use in a year. The latest release, published on 29 September 2026, covers April to June 2026. We downloaded table 3.4.1 and 3.4.2 on 22 October 2026; the figures below are taken directly from them.

DESNZ works out each average by dividing what businesses paid by the units they used. That means the figures include standing charges, network costs and supplier margins, everything except VAT. They are a fair benchmark for the all-in price per kWh you pay, not a quote for any one supplier.

Source: DESNZ tables 3.4.1 (excluding Climate Change Levy) and 3.4.2 (including the levy), April to June 2026, provisional, published 29 September 2026. Example costs are our own sums at the band average and exclude VAT. The care home and HMO usage figures are illustrations, not typical values for every property.

Two things stand out. First, size matters a lot: the smallest users paid around 14p per kWh more than the national average. Second, the smallest band went up between the first and second quarter of 2026, from 35.02p to 38.36p including the levy, while the small band edged down. DESNZ notes that the very small series has been revised since late 2024 and may be revised again, so treat it as a guide.

Work out your own price per kWh from your bill

The quickest way to see whether you are paying too much is to turn your bill into a single pence-per-kWh figure and compare it with the band above.

1. Add up your electricity charges for a year, or for the longest period you have, excluding VAT. Include standing charges and any levies shown on the bill.

2. Add up the kWh used over the same period. It is shown on each bill, usually as the difference between two meter readings.

3. Divide the charges by the kWh and multiply by 100 to get pence per kWh.

Example: a café pays £1,200 excluding VAT for 3,500 kWh over a quarter. £1,200 divided by 3,500 is £0.343, or 34.3p per kWh. That is below the very small average of 38.36p, so the current deal is reasonable, but a quote is still worth getting before the renewal date.

If your figure is well above the band average for your size, check whether you are on a deemed or out-of-contract rate. Ofgem says these are usually more expensive than a fixed contract. Our guide to deemed business electricity rates explains how to get off them.

Unit rate vs standing charge: when a cheaper unit rate costs more

Business quotes split the price into a unit rate in pence per kWh and a daily standing charge. The cheapest unit rate is not always the cheapest contract, especially for small users.

Here is a worked example with round, illustrative numbers. Quote A charges 24p per kWh and a 60p daily standing charge. Quote B charges 22p per kWh and a £1.50 daily standing charge. Quote B’s standing charge costs £328.50 more a year, and its unit rate saves 2p per kWh. You need to use 16,425 kWh a year before Quote B works out cheaper.

• Below 16,425 kWh a year: Quote A is cheaper, despite the higher unit rate.

• Above 16,425 kWh a year: Quote B is cheaper, and the gap grows with every unit.

To find your own break-even point, divide the yearly difference in standing charges by the difference in unit rates. Our business standing charge guide has more examples.

Choose a fixed rate that beats the government average

• Small sites paid an average of 28.59p per kWh including Climate Change Levy in April to June 2026

• Compare one, two and three-year fixes on total yearly cost, including standing charges

• Ask for aligned end dates across several properties

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Care homes: what changes the price per kWh

Care homes use electricity around the clock for lighting, laundry, kitchens, lifts and medical equipment, so they often sit in the small band or above. Three things can make the real cost lower than the table suggests.

• VAT. HMRC treats homes providing care for the elderly or disabled as residential accommodation for VAT. If 60% or more of a supply is for qualifying use, the whole supply qualifies for the reduced rate. From 1 October 2026 to 31 March 2027, qualifying electricity supplies in Great Britain carry 0% VAT under a temporary zero rate. Source: HMRC — VAT on fuel and power (Notice 701/19).

• Climate Change Levy. The levy is 0.801p per kWh on electricity from 1 April 2026. Supplies for domestic use, which HMRC says includes homes for the elderly and disabled, can be excluded. Source: HMRC — exemptions from Climate Change Levy.

• Meter type. Larger homes often have half-hourly meters, which open up time-of-use pricing. Our half-hourly meter guide explains what that means for quotes.

To get either relief, you need to send your supplier the right declaration for each meter. Our care home VAT guide and care home and HMO rates guide go into more detail, and our care home energy page covers multi-site groups.

HMO landlords: communal and bills-included supplies

An HMO landlord may hold several kinds of supply, and each can be priced differently.

• Communal areas. Hallways, stairwell lights, fire alarms and shared laundry are usually on a business contract in the landlord’s name. These supplies are often small, which puts them in the very small band at 38.36p per kWh on average.

• Bills-included rooms. If you include energy in the rent, your usage may be much higher and your contract terms matter more than the unit rate alone.

• Small supplies and VAT. HMRC’s de minimis rule treats electricity supplies of no more than 33 kWh a day, or 1,000 kWh a month, at a single premises as qualifying for the reduced rate. Ask your supplier how it applies to each meter.

Many HMO landlords count as microbusinesses. Ofgem says you qualify if you use up to 100,000 kWh of electricity a year, or have fewer than 10 employees and a turnover or balance sheet of no more than £2 million. That brings extra protections, including clear renewal information. Our HMO landlord energy page and communal electricity guide cover the details.

How to compare business electricity quotes like for like

1. Use your real yearly kWh for each meter, from your bills or your supplier’s account.

2. Compare the total yearly cost, including standing charges, rather than the unit rate alone.

3. Check the contract length and the end date, so you can renew in good time.

4. Ask what is included, such as levies and third-party costs, and whether any of them can change during the contract.

5. Read the terms before you agree. Ofgem says there is no cooling-off period once you agree a business energy contract.

6. Start four to six months before your current deal finishes, so you avoid out-of-contract rates.

Business energy has no price cap, unlike household energy. Our guide to the business energy price cap question explains why, and our average business electricity rates page shows how prices have moved over time.

Prefer to start with a few questions? Squid AI, SwitchSquid’s AI assistant, can walk you through what to have ready for a business quote.

Fit summary

• Get a quote now: your own price per kWh is above the band average for your size.

• Get a quote now: your contract finishes within six months, or you are on a deemed rate.

• Check reliefs first: you run a care home or a bills-included HMO and haven’t sent VAT or levy declarations.

Important conditions

• The government figures are averages for April to June 2026, exclude VAT and are provisional.

• Your price depends on your meters, usage, region, contract length and credit check.

• Business energy contracts have no cooling-off period once agreed.

• Deemed and out-of-contract rates are usually higher than a fixed contract.

• VAT and levy reliefs only apply with the right declaration for each supply.

Final decision card

Very small business or HMO communal supply? The average is 38.36p per kWh, so a quote below that is worth a look.
Care home? Check VAT and levy treatment for each meter, then compare total yearly cost.
Contract finishing within six months? Start comparing now.

Check business electricity quotes for your care home or HMO

• Have each MPAN, your yearly kWh and contract end date ready

• Works for single sites and portfolios

• Start four to six months before your contract ends

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FAQ

What is the average business electricity price per kWh in the UK?

Government figures for April to June 2026 put the average at 23.97p per kWh excluding VAT and Climate Change Levy, or 24.51p including the levy. The smallest businesses paid 38.36p per kWh including the levy. These figures include standing charges spread across each unit.

Is there a price cap on business electricity?

No. The Ofgem price cap only covers household energy. Business prices are set by each supplier’s quote, so comparing before you renew makes a real difference.

How do I work out my business electricity price per kWh?

Add up your electricity charges for a period, excluding VAT, and divide by the kWh used in the same period. Multiply the result by 100 to get pence per kWh. Compare it with the government average for your size band.

Why do small businesses pay more per kWh?

Standing charges and fixed costs are spread over fewer units, so the all-in price per kWh is higher. Large users also buy on bespoke contracts with more negotiating power. That is why the very small band averaged 38.36p per kWh against 24.51p overall.

Do care homes pay VAT on electricity?

Care homes for the elderly or disabled count as qualifying use, so their electricity can get the reduced rate if at least 60% of the supply qualifies. From 1 October 2026 to 31 March 2027, that rate is 0% in Great Britain. You need to send your supplier a VAT declaration for each meter.

What rate do HMO landlords pay for communal electricity?

Communal supplies are usually on business contracts and are often small, so they tend to fall in the very small band. The government average for that band was 38.36p per kWh including the levy for April to June 2026. Your own rate depends on your quote and contract.

When will new business electricity price figures be published?

DESNZ plans to publish its next non-domestic price figures on 17 December 2026. They will cover July to September 2026. We will update this guide when they are out.

Last updated: Thursday 22 October 2026 (Europe/London).
Next update: when the government publishes its next non-domestic energy price figures, due on 17 December 2026.
By: Switch Editorial Team, Switch Squid Ltd