A complete guide to business energy for restaurants

Updated with latest energy rates on May 7, 2025

Busy restaurants can use a lot of energy. When you consider the lighting and heating that are essential for creating an ambience, and the gas and electricity that are essential for cooking, the costs can soon add up. 

That’s why it’s so important to make sure you’re on the best deal, so you can keep your costs as low as possible.

How are your restaurant's energy rates calculated?

The amount you pay for the gas and electricity needed to run your restaurant can vary depending on several things, including:

• Your business’s credit rating - if suppliers think there’s a credit risk with your business, they may not offer you the most competitive rates
• The size of your business
• Your location - this can affect how much it costs suppliers to physically send energy to your premises
• Your business type - you might pay less if you’re a sole trader or a limited company, for example
• Your business sector
• How much energy your business uses each year

When you get your business energy bills, most of the costs will be based on the amount of energy your restaurant has used. These are the two main costs to look out for on your bills:

• Unit rate: The price you pay per unit (kilowatt-hour or kWh) of energy you use. This varies depending on your supplier and tariff.
• Standing charge: A daily fee that covers the cost of supplying energy to your business, regardless of how much energy you use.

These costs will also usually be included in the rates you pay:

• Wholesale costs are the price your supplier pays for the gas and electricity they provide to you. These costs fluctuate with market conditions, but if you’re on a fixed contract, your rate will stay the same throughout your agreement.
• Network costs are fees your supplier pays to use the transmission and distribution networks that deliver energy from power stations to your business.
• Environmental costs are contributions suppliers are required to make to government-mandated environmental programs, aimed at promoting sustainability and reducing carbon emissions.
• Operating costs are the expenses your supplier incurs to manage your account and ensure it runs smoothly.
• Climate Change Levy (CCL) is a tax on the energy your business uses, designed to encourage energy efficiency and reduce carbon emissions. Businesses using less than 33 kWh of electricity or 145 kWh of gas daily are exempt.
• VAT is a tax applied to goods and services. Depending on your energy usage, you’ll either pay the standard 20% rate or a reduced rate.

What is an average business electricity bill in 2025?

The amount you pay for business electricity depends on your business’s location and your energy supplier, but these average amounts will give you a rough guide to what you can expect to pay:

Business size	Average annual usage (kWh)	Average price (per kWh	Standing charge (daily)	Average annual price
Micro business	5,000 - 15,000	25.5p	47.0p	£2,718 (based on annual usage of 10,000 kWh)
Small business	15,000 - 25,000	25.8p	52.4p	£5,861 (based on annual usage of 22,500 kWh)
Medium business	25,000 - 50,000	25.0p	78.9p	£11,978 (based on annual usage of 47,500 kWh)

^{Note: Prices are correct as of May 2025. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges on contracts sold by Bionic from January 3 to May 6, 2025.}

What is an average business gas bill in 2025?

As a restaurant owner, gas is likely to be important to the success of your business. The amount you pay for business gas depends on your business’s location and your energy supplier, but these average amounts will give you a rough guide to what you can expect to pay:

Business size	Average annual usage (kWh)	Average price (per kWh)	Standing charge (daily)	Average annual price
Micro business	5,000 - 15,000	7.6p	42.4p	£915 (based on annual usage of 10,000 kWh)
Small busines	15,000 - 30,000	7.3p	43.8p	£1,807 (based on annual usage of 22,500 kWh)
Medium business	30,000 - 65,000	7.4p	64.1p	£3,730 (based on annual usage of 47,500 kWh)

^{Note: Prices are correct as of May 2025. Rates and bill size may vary according to your meter type and business location. The prices you’re quoted may be different from the averages shown. The figures shown are the average unit rates and standing charges on contracts sold by Bionic from January 3 to May 6, 2025.}

How to make your restaurant more energy efficient

There are lots of ways to improve energy efficiency at your restaurant and bring your business energy bills down.

Make sure you keep fridge doors closed whenever possible, and check that the seals on your fridges and cold rooms are intact. Defrost and clean your fridges regularly, and keep the condensers and evaporators clean. When you’re looking to buy a new refrigerator, check the energy rating - AA++ rated units are the cheapest to run.

A third of your energy cost is typically spent on heating and hot water, so it’s worth insulating your hot water pipes to make sure you’re not losing any heat. Check your water temperature is at 60C, as this keeps water hot and kills bacteria. Fix any leaking taps as quickly as possible, and consider swapping for spray water taps, as these use less water than conventional taps.

When it comes to heating and ventilating your restaurant, it’s important to get your systems serviced regularly to make sure they’re running as efficiently as possible. Consider turning your thermostats down to a comfortable level - you rarely need to use air conditioning below 24C. Switch off your kitchen hoods when they’re not needed, and match your heating timer to the times when the rooms are being used.

Don’t forget about lighting - simply replacing your traditional light bulbs with LED ones could reduce the electricity you use for lighting by as much as 80%. Encourage your staff to switch off lights when they’re not needed - installing movement sensors, time switches and daylight sensors will also help with this.

Can I Save Money by Switching Energy Suppliers?

Yes, switching business energy suppliers before your contract ends is one of the most effective ways to reduce costs. By comparing tariffs and exploring your options early, you can secure a highly competitive deal for your business.

Energy prices typically increase over time, meaning staying with your current supplier's rates is unlikely to result in savings. Fixing your rates now could lower your energy bills by up to a third when compared to the elevated costs of out-of-contract rates. Taking prompt action and comparing quotes is a prudent strategy to manage your energy expenses effectively.

How Do I Switch Business Energy Suppliers?

Switching business electricity and gas suppliers is straightforward and hassle-free with MoneySuperMarket and Bionic. Instead of spending valuable time comparing deals independently, our team will handle the process for you.

Give the Bionic tech-enabled experts a call on 0800 140 4667 to find out how they can help to cut the energy bills at your restaurant. Or pop your postcode into the box on the right and they'll give you a call back.