Business energy cost calculator

Put in the figures from your latest bill to see your yearly energy cost, broken down into energy, standing charges, Climate Change Levy and VAT.

Your energy details

Electricity
kWh

On your bill, in pence per kWh.

p

Pence per day.

p
Gas
kWh

On your bill, in pence per kWh.

p

Pence per day.

p
More about your supply (doesn't change the figures)

Unit rates and standing charges vary by region and meter type, which is why we use the rates from your own bill.

Compare business energy prices

If your contract ends within the next few months, or you're already out of contract, it's worth seeing what fixed rates are available now.

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Compare business energy prices with EnergySwitch

How brokers are paid: energy brokers are usually paid commission by the supplier, built into your unit rate or standing charge. Since 1 October 2024, the principal terms of a business energy contract must clearly show any broker fees paid through your supplier, and suppliers must give you this information on request. This applies to all non-domestic customers. Fees you pay a broker directly, and suppliers' own sales teams, are not covered. Ofgem (checked 14 October 2026). Use our broker commission calculator to see what an uplift costs.

What affects your business energy bill

Unit rate. The price per kWh is the biggest lever for most businesses. The calculator shows what each penny off it is worth to you, which is a quick way to judge whether a quote is worth switching for.

Standing charge. A fixed daily charge for being connected. For businesses that use little energy, such as a small office or a seasonal shop, it can be a large share of the bill.

Contract status. Business contracts are usually fixed for a set term. If yours ends without a new deal in place, you may be moved onto out-of-contract or deemed rates, which are typically much higher. The out-of-contract checker puts a figure on that.

Broker commission. If you got your contract through a broker, their commission is often built into your unit rate as an "uplift". The broker commission calculator turns that into pounds.

Taxes. Business energy usually carries standard-rate VAT and the Climate Change Levy, which household energy doesn't. Very low users fall under the de minimis limit and pay neither CCL nor standard-rate VAT.

Worked example

A small workshop in England uses 20,000 kWh of electricity a year at an illustrative 25p/kWh with a 60p/day standing charge. That's 54.8 kWh a day on average, above the 33 kWh de minimis limit, so CCL and standard-rate VAT apply:

Energy: 20,000 × 25p£5,000.00
Standing charge: 365 × 60p£219.00
CCL: 20,000 × 0.801p£160.20
VAT at 20%£1,075.84
Total a year£6,455.04

Each 1p/kWh off the unit rate would save £240 a year including VAT. Rates here are illustrative; the CCL rate is HMRC's rate from 1 April 2026.

Frequently asked questions

Why is VAT on my business energy bill 20%?
Business energy is usually charged VAT at the standard rate. If your average use is within the de minimis limit (33 kWh a day for electricity, 145 kWh a day for gas), it is treated as qualifying use and charged at a lower rate. In Great Britain, qualifying electricity is temporarily zero-rated from 1 October 2026 to 31 March 2027. See VAT Notice 701/19.
What is the Climate Change Levy?
A tax on energy used by businesses, charged per kWh on your bill. It doesn't apply to de minimis supplies, domestic use or charities' non-business use. The rate is set by HMRC each April.
Where do I find my unit rate and standing charge?
On your bill or contract, usually in a "charges" or "your tariff" section. The unit rate is in pence per kWh and the standing charge in pence per day.
Is there a price cap for business energy?
No. The Ofgem price cap only covers household energy. Business prices are set by contract, which is why comparing at renewal matters.
Can I reclaim the VAT?
If you are VAT-registered and the energy is for business use, you can usually reclaim standard-rated VAT through your VAT return. The calculator shows the VAT separately so you can see the cost before and after.

Sources and last checked

Figures and wording checked on 14 October 2026 (Oliver Burton) · how we check content