BUSINESS ENERGY · DESNZ BENCHMARKS

Business energy prices (UK, 2026)

UK businesses paid an average of 24.51p per kWh for electricity and 5.28p per kWh for gas from 1 April 2026 to 30 June 2026, including Climate Change Levy and excluding VAT, according to provisional government figures published on 29 September 2026.

Last updated 11 October 2026Period 1 April 2026 to 30 June 2026Provisional figuresNext release 17 December 2026

Business electricity prices by consumption band

Business gas prices by consumption band

Smaller users pay more per unit. The smallest electricity band (0 - 20 MWh a year) averaged 38.36p per kWh, compared with 22.25p for the largest (>150,000 MWh).

What these prices include

DESNZ publishes fully delivered prices: every element of the bill except VAT, expressed as one effective price per kWh. Standing-charge costs are already inside that figure, so do not add a standing charge on top. The figures are consumption-weighted averages of prices actually paid across existing contracts during the quarter. They are UK-wide, not regional, and not the price a supplier would offer you today.

What is the Climate Change Levy?

The Climate Change Levy (CCL) is a levy on energy supplied to businesses, such as electricity, gas and solid fuels. Businesses in the industrial, commercial, agricultural and public services sectors pay the main rates; domestic users and charities using energy for non-commercial activities do not pay the main rates on qualifying supplies. In the DESNZ figures, CCL adds between 0.45p and 0.72p per kWh to business electricity, depending on band.

Why business energy has no price cap

Ofgem’s price cap protects households on standard variable (default) tariffs. Business contracts fall outside it, so business prices are agreed contract by contract. Contract start date, length, usage profile and site circumstances all affect what a business pays, which is one reason published averages and individual quotes differ.

How to benchmark your own bill

1. Find your annual consumption in kWh on your bills or contract and divide by 1,000 to get MWh.
2. Choose the band above that matches your annual use.
3. Work out your own effective price: your total annual charges excluding VAT (unit charges, standing charges and CCL) divided by your kWh, then multiplied by 100 for pence.
4. Compare that figure with the band’s “including CCL” price, remembering the benchmark is a past quarter’s average across existing contracts.

For example, a site using 15,000 kWh of electricity a year sits in the Very Small band. At that band’s average of 38.36p per kWh, its annual electricity cost would be about £5,754 excluding VAT. If your effective price is well above your band’s average, it may be worth reviewing your contract when it comes up for renewal.

VAT on business energy this winter

From 1 October 2026 to 31 March 2027, electricity that already qualifies for the reduced 5% VAT rate in Great Britain is zero-rated. That includes small business use below the de minimis limit — an average of not more than 33 kWh a day, or 1,000 kWh a month, supplied to one customer at one set of premises — and charities’ non-business use. Other business electricity is unaffected, gas keeps its existing VAT treatment, and Northern Ireland supplies stay at the reduced 5% rate. The DESNZ benchmarks above exclude VAT, so the change does not affect them. More on the electricity VAT cut →