This article aims to help people starting out their new business and also people generally, who would like to know the estimated energy bill businesses in the UK pay every year, because lets face it, there is no thing as cheap energy in the UK.
One of the core motivations for all the researchers working towards and all the investors funding the research on sustainable energy programs is the cost of non-renewable energy that we use today. No doubt, energy bills are some of the most strenuous for a company, no matter its size.
While this is a common problem everywhere around the world, we believe it is more complex in countries with retail suppliers for energy than for where there is only one, government institution providing energy. Since the UK falls under the formerly discussed energy distribution umbrella of the energy market, businesses not only have to worry about energy bills but also take on the tedious task of comparing business energy online finding the right gas/ electricity supplier company in the UK that matches your requirement in your budget, tackle contract issues with those suppliers and remember to update/ renew contracts in order to keep the business running, which itself is a great cost.
Let us now discuss the average UK business energy consumption to help you pinpoint where exactly your business falls on this usage scale. We will discuss business gas and business electricity separately. But first, let us classify businesses according to the following category:
Micro Businesses are small scale businesses that usually employ less than 10 people. They usually serve a niche market and do not have fancy offices or customer touchpoints. However, do not underestimate their power. Micro businesses encompass around 95% of all businesses in the UK, most of which are home-owned or family-owned businesses. Translating this into numbers, there are more than 5 million micro-businesses functioning in the UK at all times. This number increases or decreases regularly with new businesses being added and shut down every day.
Small Sized Businesses:
Small sized Businesses employ 10-50 people and somewhat have a greater profit margin than microbusinesses. These too, contribute much to the country GDP and are usually partnerships that focus on serving certain niches. Most people usually place them in the same category as micro-businesses.
Medium Sized Businesses:
Medium sized businesses are categorized by their 50-249 strength of employees with a much larger revenue stream than micro or small-sized businesses. Even though some of these businesses are still family-owned, usually they are separate entities where management is kept separate from ownership. These businesses typically own large offices and have all sorts of business needs and expenses.
Large Businesses are Corporations with a great number of stocks owned either privately or publically. They employ over 250 people and own a great number of assets including huge multinational offices etc. Most of these businesses generate millions and billions of revenue each year.
Now that you have a fair idea of the kind of offices we will be discussing, let us look at the average electricity consumption by each of these business types.
Average Electricity Consumption by Businesses in the UK:
Micro businesses consume around 7500-15000 kWh annually and so their electricity bill can go up to 1800 pounds if they utilize 15000 kWh that is.
Small Businesses consume around 15000-30000 kWh annually and their electricity bill lies in between 1900 to 2900 pounds.
For Medium Sized Businesses this number can go from 3,300 pounds to 5,000 pounds a year and they consume around 30,000 to 50,000 kWh annually.
Large Businesses can consume from around 90,000 to 250,000 kWh and consequently their business electricity bills can fluctuate from 10,800 to 30,000 pounds per annul.
Average Gas Consumption by Businesses in the UK:
Micro businesses, with the lowest consumption, consume somewhere between 5000- 1000 kWh and so their average business gas bill is around 258 to 516 pounds per year.
Small Businesses consume 15,000 to 25,000 kWh of gas with the average bill being between 774 to 1,290 pounds annually.
For Medium Sized Businesses, the gas consumption is around 35,000 to 45,000 kWh and their bill translates into 1,806 to 2,322 pounds annually.
Here we would divide the largest entities into two categories: Large Businesses and Industries.
Large Businesses consume around 75,000 kWh of business gas per year and so their energy bill to is somewhere around 3,870 pounds or 4,000 pounds.
Industrial Scale Business consumes around 500,000 kWh of business gas and their energy bill is almost 25,800 to 26,000 pounds annually.
What variables affect your business gas bill and how to control them?
Some of the common variables that determine where you lie in the above ranges according to your business category are:
- The nature of your business. This determines your energy usage. Businesses that use energy for industrial processes will definitely see more business energy bills than businesses that use it for just heating/ cooling and lighting purposes.
- The time of the day, week, and year. You are charged extra for electricity usage during a few hours of the day; make sure to use minimum electricity during that time. Similarly, gas usage increases during winter due to heating requirements. The above-mentioned numbers are just an average as they cannot 100% cater to all these factors. We would suggest you strictly monitor your energy usage during these speak hours and also consider adjusting the thermostat of your Air Conditioner/ heater by one degree higher/ lower in order to get significant bill reduction. Also, consider insulating your office or weatherstripping it in order to save bills in the long- run.
- The machinery and equipment used for your business. Even if you have the same energy demand as your competitor, it is very likely that you both would not be paying the same bill. This may be because your office is well-lighted or have high electricity consuming old machinery, bulbs, and fans that add more strain to your energy bill. We would suggest you take full advantage of technology and go get motion-activated lighting options or low energy consuming bulbs.
- Your employees dedication and management attitude towards energy conservation. We have seen the smallest of business pay a hefty energy bill because their employees had a careless attitude towards preserving energy resources and we have seen large organizations cut down as much as 20% of bills when their employees actively played their roles in cutting down bills and appointed a dedicated staff member for making sure everyone followed proper conservation SOPs. Motivate and encourage your employees to use machines in an energy- efficient manner.
We would always recommend you compare energy prices online in order to get the best business electricity deals business gas deals for your company. How, you ask? Well we could recommend you a number of things but lets cut the chase and get to the most easy, cost-efficient and reliable method of doing so.
How to Compare Business Energy Rates Online in the UK:
Through our website of course! We guarantee the best prices for the best services in your business area!
Our process is simple. Answer a few questions related to your business and get a hold of the best business suppliers in your area. You can easily compare their business energy rates and choose the best one for yourself. We will get in touch with them for you and take over for a seamless, efficient and zero cost supplier switching experience. You will never face any interruption during the process and will be kept informed about all the details of your new suppliers contracts. Our expert- curated advice is available for our esteemed clients every step along the way should you face any hurdle or need support.
Being in this business for so long we are bound to get you cheap energy in the UK. Our satisfied clients have reported almost a 35% cut in energy bills after using our services. Helping businesses out is what we do and client satisfaction is the only perimeter of our success. Whether you are looking for business with the Best Big Six Energy Suppliers or with local gas/electricity companies in the UK, we can get you the best energy partner for all your business needs. And the best part? There are no surprises or hidden charges. Each unit rate displayed on our website is inclusive of our fee and so you will only pay for what you see. Guaranteed!
So do not hesitate in reaching out to us, we can not wait to talk to you!