A complete guide to business energy for shops

Updated with the latest energy rates on May 7, 2025

Shops can use a lot of energy. Electricity is needed to light the shop floor and displays, to power equipment and appliances, and then there's the energy used for heating and cooling. The costs soon add up. 

That’s why it’s important to understand what you’re being charged for, so you can make sure you’re on the best deal and keep control of your business energy bills.

What is an average business electricity bill in 2025?

The amount you pay for business electricity varies depending on your business’s location and your energy supplier, but these average amounts will give you an idea of what to expect to pay:

Business size	Average price (per kWh)	Standing charge (daily)	Average annual price
Micro business	25.5p	47.0p	£2,718 (based on annual usage of 10,000 kWh)
Small business	25.8p	52.4p	£5,861 (based on annual usage of 20,000 kWh)
Medium business	25.0p	78.9p	£11,978 (based on annual usage of 40,000 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 do shops use gas and electricity?

Although retail is a diverse sector, there are many common areas where energy is wasted.

Around a third of all energy used by shops goes on heating, with a quarter used for cooled storage and a quarter for lighting. Then a combination of ICT equipment, hot water, catering, fans and other factors make up the rest of the total energy consumption in the retail sector.

From boutique shops to sprawling department stores, every retailer’s energy use can vary. This makes it difficult to pinpoint when and how your business uses energy. But we can give you an average figure of how much energy you can expect to use, based on the size of your business.

Business size	Number of employees	Average annual gas usage	Average annual electricity usage
Microbusiness	Less than 10	5,000-15,000 kWh	5,000-15,000 kWh
Small business	10-49	15,000-30,000 kWh	15,000-25,000 kWh
Medium business	50-249	30,000-65,000 kWh	25,000-50,000 kWh

How to make your shop more energy efficient

There are lots of things you can do to make your shop more energy efficient and bring your business energy costs down.

• Switch off: Make sure you switch off all energy-consuming equipment when you don’t need it. You can ask your staff to do this or use timer switches for lights and heating systems. 
• Insulate: If your building isn't properly insulated, cold air will get in and hot air will get out. This means your heating systems need to work harder to maintain the right temperature. This uses more energy and costs you more money. Double glazing, ceiling and wall insulation can help, as can cheaper options like draught excluders on doors and windows.
• Maintain: It’s important to ensure your equipment is well maintained and running properly so it doesn’t waste any energy. You can often make energy efficiency improvements as part of your routine maintenance procedures for no extra cost.
• Upgrade: If you can afford to, replace old, inefficient equipment with newer, more energy-efficient models.

Here are some practical tips for lighting, heating, and other appliances that might be in your shop.

• Lighting - Lighting doesn’t just brighten your store—it sets the mood, keeps customers safe, and encourages them to linger (and buy!). But it can also be a big drain on your energy bill. Switching to energy-efficient lighting is a smart move that keeps your shop looking great while saving you money. It's also worth considering using lower lighting in non-customer areas like stock rooms, store cupboards and staff toilets. Fiting motion sensors in these areas can also help cut down usage. If you have lights outside your shop, fitting light sensors will make sure the lights only come on when it’s dark outside.
• Heating - Nobody wants to shop in an icebox! A warm, welcoming store helps keep customers comfortable and coming back. But don’t go overboard—cranking the thermostat up too high could leave shoppers uncomfortable and send your bills soaring. If you can, keep any outer doors closed. This will stop heated air from escaping and cold air from getting in. If you do have to leave your doors open, fitting an air curtain above the door can reduce the amount of warm air that escapes and cold air that gets in. 
• Fridges and Freezers - Refrigeration is a must if you’re in the food and drink business. But keeping things cool can be costly. Energy-efficient refrigeration systems can help you cut costs while keeping everything at the perfect temperature to meet safety standards. If you have display refrigerators in your shop, avoid overfilling them - the more products you have on the shelves, the harder it is for air to circulate and the harder the equipment has to work. If your display fridges are fitted with doors, make sure they close properly and the seals fit correctly. Turn off the display lights when the store is closed, and keep the condensers clean and dust-free.
• Electrical Appliances - From tills to tablets, your shop relies on electrical appliances to keep things running smoothly. Regular maintenance is key to keeping energy use efficient. And here’s a top tip: remind your team to switch everything off at the end of the day to avoid unnecessary energy waste.

You can get more tips in our guide to business energy efficiency.

Can you save money by switching energy suppliers?

Absolutely! Switching energy suppliers before your contract ends is one of the easiest ways to cut your business energy costs. By shopping around early and comparing tariffs, you can lock in the best deal for your shop.

Remember, energy prices usually go up over time, so it's unlikely you'll get better rates than those on your current fixed-rate deal. But fixing your rates could cut your energy bills by as much as a third compared to what you'd pay on your supplier's out-of-contract rates. That's why it can pay to compare quotes and lock in your rates as soon as possible.

How to switch business energy suppliers

Switching business energy suppliers might sound complicated, but it doesn’t have to be. Comparing tariffs and providers can take time if you go it alone, but we're here to support your business and keep things as simple as possible. 

MoneySuperMarket has teamed up with Bionic to help to cut the energy bills at your shop. Call them today on 0800 140 4667 to compare business energy quotes or leave your postcode and they’ll give you a call back.