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Average business energy consumption
How much energy does a business typically use? Understanding average business energy consumption helps you benchmark your own electricity usage, forecast costs, and identify whether you may be overpaying.
Energy consumption varies by size, sector, and operating hours, but national statistics provide a useful starting point.
The table below outlines average kWh usage for different business sizes.
| Size of business | Annual electricity consumption (kWh) | Annual gas consumption (kWh) |
|---|---|---|
| Very Small | 0 - 20,000 | 0 - 278,000 |
| Small | 20,000 - 500,000 | 278,000 - 1,000,000 |
| Small/Medium | 500,000 - 2,000,000 | 1,000,000 - 4,000,000 |
| Medium | 2,000,000 to 20,000,000 | 4,000,000 - 28,000,000 |
| Large | 20,000,000 + | 28,000,000 + |
| Average UK home | 2,900 | 12,000 |
Source: Gov.uk – Gas and electricity prices in the non-domestic sector.
💡 As a useful comparison, we’ve included the energy consumption of an average UK household.
What affects business energy consumption?
Business energy consumption is driven by more than just company size. It reflects how your premises operate, the equipment you rely on, and how efficiently your building is managed.
Below are the key factors that directly influence how much electricity and gas your business uses.
Industry type
Different sectors have very different energy demands. Manufacturing firms and data centres use far more electricity than office-based or service businesses due to energy-intensive equipment.
Business size
Larger premises and higher staffing levels increase demand for lighting, heating, cooling, and equipment. Even smaller businesses will see consumption rise as floor space expands.
Equipment and machinery
Energy-intensive assets such as refrigeration, HVAC systems, commercial kitchens, and industrial machinery significantly increase kWh usage, particularly if equipment is older or inefficient.
Season
Heating systems, either electric heat pumps or gas boilers, are often the biggest source of energy consumption for commercial properties during the colder winter months.
Air conditioning
Air conditioning, extraction systems, and climate control can substantially increase electricity usage, especially during warmer months or in temperature-sensitive environments.
Building insulation
Poor insulation, ageing windows, and air leakage increase both heating and cooling requirements. Well-insulated buildings require less energy to maintain stable internal temperatures.
Lighting systems
Traditional lighting, such as halogen or fluorescent fittings, consumes significantly more electricity than modern LED systems. Lighting duration and layout also affect total consumption.
Operating hours
Businesses that trade evenings, weekends, or operate continuously naturally consume more energy due to extended lighting, heating, cooling, and equipment use.
Equipment maintenance
Everyday business equipment like air-conditioning, heating and white goods can lose efficiency over time if they are not well maintained. Regular servicing can reduce unnecessary energy use.
How to calculate your business energy consumption
In Britain, commercial properties are fitted with energy meters at each business electricity connection and business gas connection.
These meters measure the amount of electricity and gas passing through them and are the best way to calculate your business energy consumption. Here’s a step-by-step guide.
- Take a meter reading, recording the date and time of the reading.
- Wait for a representative period over which you want to record consumption.
- Take another meter reading, noting the time between the two readings.
- Enter your details into our business energy consumption calculator below.
💡 Review our visual guide to taking a manual meter reading for more information.
How to measure business energy consumption
Understanding how your business’s energy consumption is recorded is the first step to calculating costs accurately. Electricity and gas usage are measured in kWh, and the way this data is captured will determine how clearly you can track and manage your energy demand.
The methods below explain how business energy consumption is measured and where most businesses can find their usage data.
Smart energy meters
Smart meters for businesses automatically record and transmit readings of business energy consumption. Most business energy suppliers offer business energy monitoring software for free, providing analysis of business energy consumption using smart meter data.
Half-hourly meters
Commercial properties with a high demand for electricity are fitted with half-hourly electricity meters that automatically record electricity consumption every 30 minutes. Large business energy suppliers provide analysis of this consumption data through online portals.
Manual meter readings
All types of business electricity meters or business gas meters can measure business energy consumption using manual meter readings. Refer to our section on calculating business energy consumption above.
Business electricity bill
All business electricity bills calculate the power consumption associated with your MPAN during the billing period using an opening and closing meter reading.
All commercial electricity tariffs include a business electricity price per kWh of electricity consumed.
Business gas bill
Similarly, bills issued by business gas suppliers also use energy consumption to calculate business gas prices.
Compare business energy prices today with our free service to find cheaper rates for your business.
Sub metering
Larger premises may install sub meters to track energy usage of specific areas, departments, or equipment.
This provides more detailed insight than a single main meter and helps keep track of precisely where business energy consumption is highest.
Typical energy consumption of business equipment
The energy consumption of your business is the sum of the energy used by all devices connected to your mains.
Our business energy experts have compiled a list of devices typically found in the workplace that consume electricity and gas, using their product specifications to calculate their daily energy consumption.
Lighting
Daily electricity consumption of lighting used in a ten-person office.
- LED – 1.3 kWh
- Halogen – 16 kWh
- Incandescent – 21 kWh
Heating
Energy consumption to heat a ten-person office on a cold winter day.
- Combi Boiler – 51 kWh (gas)
- Electric radiators – 48 kWh (elec)
- Heat pump – 16 kWh (elec)
Cooling
Electricity used to keep a ten-person office cool during a hot day.
- Central AC unit – 2.7 kWh
- Portable AC unit – 6.4 kWh
- Ceiling fans – 0.7 kWh
IT equipment
Daily electricity usage of personal IT equipment used by office staff.
- Laptop – 0.4 kWh
- Desktop – 1.6 kWh
- Monitor – 0.1 kWh
Caffeine
Daily electrical consumption needed to make tea and coffee.
- Electric kettle – 6 kWh
- Boiling water tap – 4 kWh
- Coffee machine – 7 kWh
Kitchen
Daily electricity consumption in the kitchen of a small office.
- Fridge – 1.4 kWh
- Dishwasher – 3 kWh
- Microwave – 0.4 kWh
How business energy consumption affects your energy costs
Your level of business energy consumption determines more than how many kWh are charged on your bill. It also influences the type of pricing structure and contract terms available to you.
Smaller businesses with predictable usage are typically offered simple fixed unit rates. Larger consumers, particularly those with higher electricity demand, have more choices, including time- of-use tariffs where unit prices respond to wholesale electricity market conditions at different periods of the day.
Higher usage can also improve negotiating power. Businesses with substantial estimated annual consumption may secure more competitive pricing per unit compared to smaller customers, even though their overall bill is higher in total.
However, there is an advantage to smaller consumption. Businesses consuming less than 100,000 kWh of electricity or 293,000 kWh of gas each year are protected by Ofgem’s microbusiness protections.