Energy suppliers for care homes

Tip: not sure what to ask for? Ask Squid AI to explain your bill or contract terms, or read how to get a business energy quote with Squid AI.

A care home can’t turn the heating down at night or close at weekends. Residents need warm rooms, hot water for bathing, a working kitchen and laundry running every day of the year. That steady, round-the-clock demand is why care homes use far more gas and electricity per square metre than offices, and why a few pence per kWh makes a large difference over a year.

Care homes are also treated differently for tax. Because residents live there, HMRC treats the energy as residential use, so it can qualify for a lower VAT rate and is excluded from the Climate Change Levy. Many homes never get this set up properly with their supplier, especially after a switch or a change of owner.

Business energy prices are agreed contract by contract, so the price you pay depends entirely on the contract you agree and when you agree it.

We don’t publish a single “care home price” because quotes depend on your meters, region, usage and contract length. As a rough guide, one UK broker, Energy Costs, estimates these 2026 business rates for care homes:

Care home gas prices per kWh

Gas is usually a care home’s biggest energy bill, because heating and hot water run all day. The third-party estimate above puts 2026 care home business gas at about 6p–9p per kWh plus a 40p–95p daily standing charge, before tax. (Energy Costs) On residents’ use, gas then carries 5% VAT (the temporary 0% rate covers electricity only) and no Climate Change Levy. Without a VAT declaration, a supplier may charge 20% VAT plus the levy of 0.801p/kWh from 1 April 2026. (HMRC, GOV.UK) Business gas is priced contract by contract, so your own quote is the only reliable figure.

How much energy does your home use?

Your bills are the best guide, so add up the last 12 months of kWh for each meter. If you don’t have them, the CIBSE TM46 benchmark for long-term residential buildings is a reasonable starting point: about 65 kWh of electricity and 420 kWh of gas per square metre of floor area per year. (CIBSE TM46 benchmarks, reproduced by Arup/Carbon Trust)

Example only: a home with 2,000 m² of floor area would use about 130,000 kWh of electricity and 840,000 kWh of gas a year at those benchmarks. Older buildings, laundries on site and heavy dementia-care heating schedules can push usage higher. If your home uses much more than the benchmark, an energy survey is worth doing before you fix for three years.

There’s no single best or cheapest energy supplier for care homes. As of 26 October 2026, business gas and electricity prices depend on your meters, usage, region, credit check and the day you get a quote, so the way to find the cheapest supplier for your home is to compare several quotes on total yearly cost and contract terms.

Who is the cheapest energy supplier for a care home?

It changes from home to home and week to week. Suppliers price business contracts individually, and a supplier that quotes well for a single home on one meter may not be the cheapest for a group with many sites. Compare unit rates, standing charges, contract length and exit terms together, and ask every supplier to apply your VAT declaration so the quotes are like for like. More detail: business electricity rates for care homes and HMOs.

Do charities get cheaper electricity?

Sometimes. HMRC charges the reduced rate of VAT on fuel and power a charity uses for its non-business activities, which are generally activities it doesn’t charge for. From 1 October 2026 to 31 March 2027, qualifying electricity in Great Britain, including a charity’s non-business use, is zero-rated. (HMRC Brief 10 (2026), VAT Notice 701/19, para 3.3) A charity care home that charges fees is usually carrying on a business activity, but its residents’ energy normally qualifies anyway as residential use (para 3.2), so the same declaration covers it. The unit price itself is set by your contract, not by charity status. See 0% VAT on care home electricity.

How do I find out who supplies my care home?

Start with the latest bill, an account email or the supplier’s online account. If you’ve just bought or taken over the home:

• Gas: enter the postcode on Find My Supplier, or call the Meter Number Helpline on 0870 608 1524 (Monday to Friday, 8:30am to 5pm), which can also give you the meter point reference number (MPRN).
• Electricity: find your local network operator with the Energy Networks Association postcode search, then use that operator’s supplier lookup or contact it. (Citizens Advice)
• Then act quickly: if no contract is in place, the supplier can charge deemed rates. Take meter readings on the day you take over.

What to check before you sign with a supplier

• Every meter (MPAN and MPRN) for every site is listed on the contract.
• The VAT declaration is applied, so electricity shows 0% VAT to 31 March 2027 and gas 5% on residents’ use, with no Climate Change Levy on that share.
• Unit rates, standing charges and the estimated yearly cost are fixed for the term, or you know exactly which costs can move.
• The contract end date, notice period and exit fees, especially if you might sell or close a home.
• The broker fee, if you use a broker. Ask for it in writing; for micro and small businesses the supplier must show it in the contract’s principal terms.

Our care home energy contract renewal checklist goes through each step. When you’re ready, get a free quote for one home or your whole group.

Business contracts don’t roll onto a cheaper tariff when they end. If you miss your notice window, you may move onto out-of-contract or deemed rates, which are usually much higher than a fixed deal. Start comparing about six months before your end date, and at least three. Your end date and notice period should be on your bill. If you can’t find them, our contract end date checker shows you where to look.

If your home is a microbusiness in Ofgem’s terms (fewer than 10 staff and turnover under €2 million, or under 100,000 kWh of electricity or 293,000 kWh of gas a year), you have extra protections on renewals and notice. Many small care homes meet the gas or electricity test even with more staff. Read microbusiness energy rights.

1. Tell us about your home or group. That means postcode, beds, number of sites and your contract end month. A recent bill helps but isn’t essential.
2. We compare suppliers that will quote for your sites and usage, and check your VAT and CCL set-up.
3. You see the full picture, including unit rate, standing charge, contract length, exit terms, estimated yearly cost and our fee.
4. You choose, or don’t. If you go ahead, the new supplier handles the switch and your supply carries on as normal.

How we’re paid: if you sign a contract through us, the supplier pays us a commission, which is usually built into the unit rate or standing charge. Since October 2024, Ofgem has required suppliers to show broker fees in your contract’s principal terms, and you can ask for the figure at any time. Read more about business energy broker fees.

• Care home energy contract renewal checklist
• 0% VAT on care home electricity, October 2026
• VAT on business energy, October 2026
• Climate Change Levy UK 2026
• Business energy contract end dates
• Out-of-contract business energy rates
• Business energy broker fees
• Energy for HMO landlords and letting agents
• Energy for supported living providers

Reviewed by the SwitchSquid business energy team, 26 October 2026. Tax rules are summarised from HMRC guidance. For your own VAT position, speak to your accountant.