Business Energy Calculator

Use our interactive business energy calculator to estimate your business’s electricity costs, gas costs, or combined bill based on your actual usage and tariff. Our calculator mirrors supplier billing, incorporating unit costs, standing charges, Climate Change Levy (CLL) charges, and VAT, so you can compare your calculation to your actual bill and ensure accuracy.

How does our business energy bill calculator work?

To use our business energy bill calculator, you’ll need to provide a few details about your typical gas and electricity usage. This includes details about your current tariff, such as your unit rates and standing charges, and how much energy you use per month or year, which you can find on a recent bill.

To estimate your business gas and electricity bill, we use the following formula:

Using our calculator, you can estimate your next bill for your business electricity, business gas, or both. If calculating for one fuel only, make sure to set the unit rate, standing charge, and usage for the other fuel to ‘0’.

You can also calculate how much your business should be spending on energy each day, week, month, or year by changing the billing period. This can help you to get a better understanding of how much your business is spending on energy in real time, so that you can make practical and effective adjustments to your habits. 

What do the components of your business energy bill mean?

All the figures you provide us will also be included in your bill, and they all have distinct meanings that you should be aware of:

• Unit rate: This is the amount your business is charged for each unit of gas or electricity it uses, measured in kilowatt hours (kWhs). 
• Standing charge: This is a fixed fee that you’re charged each day for the maintenance of your energy supply itself. 
• Usage: This is the total amount of gas or electricity that your business uses, in kWhs, over a specified time period. 
• Climate Change Levy: This is a tax applied to most businesses’ energy usage, designed to encourage lower energy consumption and promote greater efficiency. 
• VAT: Value added tax is set at 20% for most businesses, although some may qualify for a reduced rate of 5%.
• Billing period: This is the amount of time that your bill covers, which is typically one month but could be up to a year. With our calculator, you can also set it to daily or weekly to help you gain a better insight into your day-to-day spending. 

What if you don’t know your typical usage?

If you’re not sure about how much energy your business uses on average, you can find out by looking at a recent bill. This should clearly show how much gas and electricity your business used during the billing period, which is typically a month. 

It also helps if you’ve provided a recent meter reading to your supplier, as this will ensure your bill is more likely to be accurate. Without providing regular meter readings, your supplier will estimate your monthly bills, so they may not correctly reflect your actual usage. 

Finally, if checking a recent bill, remember that energy usage is generally higher in the cold winter months than it is during the summer, although this rule won’t apply to every business. 

If you haven’t received a bill recently or can’t find one, you can calculate your estimated business energy usage with our appliance cost calculator here. Instead of providing us with your unit rates, standing charges, and typical usage, you can calculate your usage based on the different appliances in your business premises and how often they’re in use.  

Average business energy costs per kWh

The actual amount your business pays for its energy will depend on a variety of factors, such as its size, location, the supplier you’re with, and the specific tariff you’re on.

The average business electricity price per kWh in July 2025 is:

• For micro businesses (up to 5,000 kWh per year): 27.1p
• For small businesses (5,000 – 15,000 kWh per year): 26p
• For medium businesses (15,000 – 25,000 kWh per year): 25.6p
• For large businesses (25,000 – 50,000 kWh per year): 25.5p
• For very large businesses (50,000+ kWh per year): 25p

The average business gas price per kWh in 2025 is:

• For micro businesses (up to 5,000 kWh per year): 9.2p
• For small businesses (5,000 – 15,000 kWh per year): 7.9p
• For medium businesses (15,000 – 25,000 kWh per year): 7.7p
• For large businesses (25,000 – 50,000 kWh per year): 7.7p
• For very large businesses (50,000+ kWh per year): 6.6p

While the average unit cost of energy tends to decrease the larger the business is, the opposite is true for average standing charges. That’s why it’s important to carefully weigh up both the unit rate and standing charge in relation to your annual consumption when comparing business energy tariffs. 

What is the average business energy bill in the UK?

Again, this depends on the size of your business, its location, and your specific tariff. Ultimately, the amount of energy your business consumes will determine the size of its gas and electricity bills each month. 

However, based on the average energy rates listed above, the average standing charges, and the average annual consumption based on business size, a typical annual energy bill (both gas and electricity) in July 2025 is:

• For micro businesses: Up to £2,088.75
• For small businesses (5,000 – 15,000 kWh per year): £2,016.20 – £5,406.20
• For medium businesses (15,000 – 25,000 kWh per year): £5,394.68 – £8,724.68
• For large businesses (25,000 – 50,000 kWh per year): £9,057.38 – £17,357.38
• For very large businesses (50,000+ kWh per year): £16,907.78+

What is the Climate Change Levy?

The Climate Change Levy (CCL) is a tax introduced by the UK government in April 2001. It is charged on any gas or electricity supplied to businesses across the country and is designed to encourage companies to be more sustainable and energy-efficient. 

The CCL is currently set at 0.775p per kWh for both gas and electricity, but this is set to increase to 0.801p per kWh for both fuels from April 1^st, 2026. 

Most businesses in the UK will need to pay CCL charges on their gas and electricity, and they’ll be included in your bill from your supplier. However, some businesses may be exempt. These include:

• Small businesses (those that use less than 12,000 kWh of electricity and 52,765 kWh of gas each year)
• Mixed-use properties (where at least 60% of the energy is used for domestic purposes)
• Charities and non-profit organizations

Other businesses may also be eligible for a reduction in the CCL rate. Energy-intensive businesses that sign up to the Climate Change Agreement scheme can claim a 92% reduction on electricity CCL charges and an 89% reduction in gas CCL charges. 

How much VAT should my business be paying?

Most businesses in the UK are required to pay 20% VAT on their gas and electricity. This will be automatically added to your business energy bill. However, some businesses may be eligible for a reduced VAT rate of 5%. These include:

• Small businesses (those that use less than 4,397 kWh of electricity per month and less than 5,000 kWh of gas per month)
• Charities and non-profit organizations
• Premises that are used primarily for domestic use