Business electricity prices
The average price UK businesses paid for electricity in Q2 2026 was 24.51p per kWh. The smallest businesses paid 38.36p. These are the government's own figures for what businesses actually paid, by size.
- Official figures, latest quarter: Q2 2026
- Prices per kWh by business size, with the change on a year earlier
- Free quotes from an independent consultant if your contract is due
What businesses paid for electricity in Q2 2026
The Department for Energy Security and Net Zero collects the prices UK businesses actually pay and publishes the averages each quarter. The table shows the average price per kWh for each size of business, against the same quarter a year earlier.
| Business size | Yearly use | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|---|
| Very Small | 0 to 20 MWh | 38.36p | 37.07p | +3.5% |
| Small | 20 to 499 MWh | 28.59p | 28.63p | -0.1% |
| Small/Medium | 500 to 1,999 MWh | 27.67p | 27.67p | +0.0% |
| Medium | 2,000 to 19,999 MWh | 25.17p | 25.81p | -2.5% |
| Large | 20,000 to 69,999 MWh | 24.42p | 24.56p | -0.6% |
| Very Large | 70,000 to 150,000 MWh | 22.70p | 21.86p | +3.8% |
| Extra Large | over 150,000 MWh | 22.25p | 20.97p | +6.1% |
| All businesses | average | 24.51p | 24.03p | +2.0% |
Source: Department for Energy Security and Net Zero, Quarterly Energy Prices table 3.4.2 (published 29/09/2026). Average prices actually paid, including the Climate Change Levy and excluding VAT. Q2 2026 figures are provisional.
How prices have moved
The smallest band covers businesses using up to 20 MWh a year: most shops, offices, cafes and small workshops. If your business uses more, find your band by yearly use in the table above.
What makes up a business electricity price
- Wholesale energy. The cost of the electricity itself, which moves with the wholesale market and is fixed for the length of a fixed contract.
- Network charges. The cost of the transmission and distribution networks that carry power to your premises.
- Policy costs and the Climate Change Levy. Government schemes and a per-kWh tax on business energy use.
- The supplier's costs and margin, and any broker commission. Under Ofgem rules, broker commission has to be shown on microbusiness contracts and bills.
- The standing charge. A fixed daily charge on top of the unit rate, which matters most for small users.
Because there is no price cap for businesses, two firms on the same street can pay very different rates. The biggest single factor you control is renewing on time: see what to compare between offers.
Questions businesses ask
What is the average business electricity price per kWh?
Across all UK businesses the average was 24.51p per kWh in Q2 2026, including the Climate Change Levy and excluding VAT, according to government figures. The smallest businesses, using up to 20 MWh a year, paid an average of 38.36p.
Why do small businesses pay more per kWh?
Fixed costs such as metering, billing and network charges are spread over fewer units, and smaller users have less buying power. Large users can also buy energy in blocks over time, which smaller businesses rarely do.
Is there a price cap for business electricity?
No. The Ofgem price cap only covers household tariffs. Business electricity prices are agreed contract by contract, which is why comparing offers before your renewal matters.
Is VAT included in business electricity prices?
These government figures exclude VAT. Most businesses pay VAT at 20 percent on energy and reclaim it if VAT registered. Businesses using very small amounts can qualify for the 5 percent rate.
What is the Climate Change Levy?
A tax on energy used by businesses, charged per kWh and shown on your bill. The figures on this page include it, because it is part of what businesses actually pay.
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