If you have not reviewed your business electricity tariff in the past year, there is a very good chance you are overpaying. Most London businesses stay with the same supplier year after year not because they are getting a good deal, but because switching feels complicated. It is not.
London has 589,410 registered business locations, and together they spend an estimated £2,734,494,160 on electricity every year. If every one of those businesses saved just 10% by switching to a better tariff, that would be £273 million saved annually money that stays in the businesses where it belongs.
This page shows you exactly what London businesses are currently paying for electricity, broken down by size, industry, and turnover. Use it to see where you stand then compare business electricity tariffs with BBC Utilities and see what you could actually be paying instead.
What Do London Businesses Pay for Electricity Per kWh?
The table below shows average business electricity rates in 2026 based on how much electricity your business uses each year. We have shown rates both before and after the Climate Change Levy (CCL) a government tax applied to most commercial electricity bills.
| Business Size | Yearly Usage | Rate (excl. CCL) | Rate (incl. CCL) | Your Best Rate |
|---|---|---|---|---|
| Very Small | 0 – 20 MWh | 40.64p/kWh | 41.15p/kWh | Get Live Prices → |
| Small | 20 – 499 | 27.57p/kWh | 28.27p/kWh | Get Live Prices → |
| Small/Medium | 500 – 1,999 | 27.23p/kWh | 27.81p/kWh | Get Live Prices → |
| Medium | 2,000 – 19,999 | 24.11p/kWh | 24.65p/kWh | Get Live Prices → |
| Large | 20,000 – 69,999 | 22.46p/kWh | 23.01p/kWh | Get Live Prices → |
| Very Large | 70,000 – 150,000 | 20.50p/kWh | 20.98p/kWh | Get Live Prices → |
| Extra Large | Over 150,000 | 20.05p/kWh | 20.49p/kWh | Get Live Prices → |
| UK Average | All sizes | 22.96p/kWh | 23.47p/kWh | Get Live Prices → |
(Source: gov.uk )
A few things worth pointing out here:
- Very small businesses pay over 40p/kWh more than double the rate that large businesses pay. That gap exists purely because of volume, not because small businesses deserve worse rates.
- The UK average sits at 22.96p/kWh. If you are paying more than that and your usage puts you in the medium or large band, it is worth checking whether your current deal is still competitive.
- Out-of-contract rates what you get rolled onto when your deal expires without a switch are typically 30 to 50% above the rates shown here. If your contract has already ended, this is urgent.
How Much Do London Businesses Spend on Electricity Each Year?
The figures below are estimates of total electricity consumption and spend across all London businesses, split by business size. They are based on ONS business count data combined with Ofgem consumption patterns so they will not match your exact bill, but they give you a useful sense of scale.
What That Translates to in Actual Spending
| Business Size | Electricity Used Per Year | Gas Used Per Year |
|---|---|---|
| Micro (under 10 staff) | 7,678 GWh | 7,678 GWh |
| Small (10 to 49 staff) | 1,544 GWh | 1,852 GWh |
| Medium (49 to 250 staff) | 664 GWh | 863 GWh |
| Large (250+ staff) | 320 GWh | 384 GWh |
| Total | 10,205 GWh | 10,776 GWh |
What That Translates to in Actual Spending
| Business Size | Electricity Bill | Gas Bill | Total Energy Bill |
| Micro (under 10) | £2,058,364,560 | £748,566,000 | £2,806,930,560 |
| Small (10 to 49) | £413,349,300 | £180,589,500 | £593,938,800 |
| Medium (49 to 250) | £189,628,300 | £84,098,625 | £273,726,925 |
| Large (250+) | £73,152,000 | £37,440,000 | £110,592,000 |
| Total | £2,734,494,160 | £1,050,694,125 | £3,785,188,285 |
(Source: gov.uk )
The micro and small business categories account for the largest share of total spending not because individual small businesses use lots of electricity, but simply because there are so many of them. Each large business individually uses far more than a small one. But pound for pound, small businesses are the ones who benefit most from comparing regularly, because they have the least protection against expensive rollover rates.
London Business Locations by Number of Employees
There are 589,410 VAT and/or PAYE registered business locations in London. Here is how they break down by headcount:
| Employees | Number of Businesses | Share of Total |
| 0 to 4 | 447,930 | 76.00% |
| 5 to 9 | 63,910 | 10.80% |
| 10 to 19 | 38,365 | 6.50% |
| 20 to 49 | 23,375 | 4.00% |
| 50 to 99 | 8,590 | 1.50% |
| 100 to 249 | 4,680 | 0.80% |
| 250+ | 2,560 | 0.40% |
| Total | 589,410 | 100% |
(Source: gov.uk )
More than 86% of London businesses have fewer than 10 employees.These are the businesses most likely to be sitting on expensive out-of-contract rates right now not because they chose a bad deal, but because energy contract renewals often slip down the priority list when you're running a small team. That's exactly the gap BBC Utilities fills.
London Businesses by Industry
A restaurant has very different electricity needs from a law firm. A warehouse uses energy differently from a GP surgery. The table below shows how many businesses operate in each sector across London and whatever industry you are in, BBC Utilities can find you a tariff that fits your usage pattern.
| Industry | Businesses in London | Share of Total |
| Agriculture, forestry and fishing | 895 | 0.20% |
| Production | 18,090 | 3.10% |
| Construction | 62,790 | 10.70% |
| Motor trades | 8,065 | 1.40% |
| Wholesale | 22,740 | 3.90% |
| Retail | 53,955 | 9.20% |
| Transport and storage | 18,850 | 3.20% |
| Accommodation and food services | 36,695 | 6.20% |
| Information and communication | 63,125 | 10.70% |
| Finance and insurance | 16,550 | 2.80% |
| Property | 32,330 | 5.50% |
| Professional, scientific and technical | 110,500 | 18.70% |
| Business administration and support services | 57,900 | 9.80% |
| Public administration and defence | 1,710 | 0.30% |
| Education | 13,055 | 2.20% |
| Health | 27,315 | 4.60% |
| Arts, entertainment, recreation and other | 44,840 | 7.60% |
(Source: gov.uk )
How to Compare Business Electricity Tariffs in London
You do not need to spend hours on the phone with suppliers or wade through confusing contract documents. Here is how the process works with BBC Utilities:
- Share your postcode, current supplier name, and your annual kWh usage all of this is on your electricity bill. If you cannot find it, we can pull your meter data automatically.
- We run a live search across our panel of trusted UK energy suppliers to find the most competitive rates available for your business right now.
- You see a clear comparison unit rates, standing charges, contract lengths laid out simply so you can make the right call for your business.
- If you want to switch, we take care of everything. We contact your old supplier, set up the new contract, and confirm when your switch is live. Most London switches complete within 5 working days.
- Your electricity supply is never interrupted during a switch. The meter stays the same only when the supplier changes.
The ideal time to compare electricity tariffs is 3 to 6 months before your contract ends. That gives you enough runway to find a good deal without rushing. But if your contract has already expired and you haven't switched, do not wait any longer rollover rates can cost you 30 to 50% more than a properly negotiated tariff.
What Actually Affects Your Electricity Rate?
When suppliers quote you a rate, they are looking at several things. Understanding these helps you see why your rate is what it is and what you can do to improve it.
| Factor | Why It Matters |
|---|---|
| Annual usage | Use more and your unit rate falls. Volume gives you leverage. |
| Contract length | A 2 or 3-year fixed contract usually beats a 12-month deal on rate. |
| Meter type | Half-hourly metered businesses (Profile Class 05–08) are priced differently. |
| Credit history | Suppliers price at risk. A solid credit score opens better deals |
| Green tariff | A 100% renewable tariff could exempt you from the Climate Change Levy entirely. |
| Contract status | Out of contract? You are almost certainly on the most expensive rate available. |
Why London Businesses Use BBC Utilities
BBC Utilities is an independent energy broker not a supplier. We are not trying to sell you one particular company's tariff. We search across a panel of UK energy suppliers and find the deal that makes the most sense for your specific business.
We work with suppliers including E.ON, ScottishPower, British Gas, Valda Energy,Octopus Energy , and more. Every comparison is free, there are no hidden fees, and there is never any obligation to switch.
- Our UK-based team is available Monday to Friday, 9am to 5pm call us, do not just fill in a form
- We alert you before your contract ends so you never accidentally roll onto a costly default rate
- We handle all supplier communication, paperwork, and switch confirmation from start to finish
- We follow the Utilities Intermediaries Association (UIA) code of conduct you can see exactly how we are paid on our website
- No pressure, no upselling if the market cannot beat your current rate, we will tell you that too
Thousands of UK businesses have compared and switched through BBC Utilities. If you have not reviewed your electricity tariff in the last 12 months, a 10-minute comparison could save you more than you might expect.
Frequently Asked Questions
You need three things: your postcode, your current supplier name, and your annual electricity usage in kWh. That is it we do the rest searching live rates from multiple suppliers and presenting you with a clear comparison. No jargon, no lengthy forms.
You can compare at any time, but switching without paying exit fees is generally only possible within the 49-day notice window before your contract ends. Already out of contract? Switch today no exit fees, no waiting. BBC Utilities sends you a heads-up before your renewal date so you never miss that window.
Your business postcode, your current supplier name, your MPAN number (on your bill), your contract end date, and your annual kWh usage. BBC Utilities can retrieve the meter data automatically if you have the MPAN you may not need to dig out the bill at all.
It depends on your current rate and how long you have been on it. A small business on a rollover rate paying 35p/kWh, when the market rate for their size is closer to 27p/kWh, could save several hundred pounds a year just by switching. Larger businesses with higher usage can save significantly more. The only way to know your exact saving is to compare which takes a few minutes and costs nothing.