UK Business Energy Cost Calculator
See what a better rate could save you and then add the effect of cutting your usage. Adjust any figure to match your own bills.
Electricity
Gas
Two ways to cut your business energy bill
Strip a business energy bill back and it comes down to two things: the price you pay per unit, and how many units you use. Pull either lever (ideally both) and the bill falls.
How a business energy bill is built
Gas and electricity are billed the same way and contracted separately: a unit rate (pence per kWh) for every unit you consume, plus a standing charge (pence per day) just for being connected. On top sit VAT usually 20%, though some low-usage and charitable customers pay 5% and the Climate Change Levy. Because the standing charge barely moves, the real leverage is in the unit rate you agree and the number of units you get through.
Lever 1: pay a better price
The quickest win for most businesses needs no capital outlay at all: stop overpaying for each unit. Rates vary widely between suppliers and contracts, and the worst rates are the ones you drift onto by doing nothing.
What to compare
- Look at the unit rate and the standing charge, both feed the bill.
- Compare gas and electricity separately; they’re different contracts.
- Weigh fixed-rate certainty against variable-rate flexibility.
- Factor in green tariffs or multi-site deals if they fit your business.
When (and how) to switch
- The biggest savings come from leaving out-of-contract, rollover or deemed rates.
- Your renewal window usually opens up to ~6 months before your contract ends.
- You often have to formally give notice to end the current deal.
- There’s no cooling-off period on business energy, so compare before you commit.
Lever 2: use fewer units
Every unit you don’t use is one you never pay for and at a better rate, each saved unit is cheaper still. Some measures cost nothing; others pay back over time.
Quick, low-cost wins
- Switch to LED lighting and add occupancy sensors.
- Set heating and cooling sensibly; use timers and zoning for opening hours.
- Turn off equipment and kill standby loads overnight.
- Use smart or half-hourly meter data to spot waste and peak times.
Bigger efficiency measures
- Improve insulation and draught-proofing to cut heating and cooling demand.
- Upgrade to efficient heating, cooling and appliances.
- Service equipment so it runs at its rated efficiency.
- For larger sites, consider on-site generation such as solar.
The two levers multiply. A better rate makes every unit cheaper; using less means fewer units at that better rate. Since the standing charge is largely fixed, your unit price and your consumption are where the real money sits and checking your price is usually the fastest place to start.