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Business electricity prices, Q2 2026

Business electricity rates per kWh

What UK businesses actually pay for electricity, by size, from the government's quarterly price statistics. The all-business average in Q2 2026 was 24.51p per kWh; the smallest users paid 38.36p.

Next official update: 17 December 2026. This page updates automatically.

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All-business average, Q2 2026 24.51p/kWh Up 2.0% year on year
Smallest users (up to 20,000 kWh a year) 38.36p/kWh Up 3.5% year on year
Climate Change Levy on electricity 0.801p/kWh Main rate from 1 April 2026
VAT 20% Standard rate. Low users 5%, or 0% from 1 Oct 2026 to 31 Mar 2027
Q2 2026 (provisional)

Business electricity prices by business size

Pence per kWh, excluding VAT. These are fully delivered prices, so standing charges and network costs are already spread across the units used.

Average electricity price paid by UK businesses by size, Q2 2026
Business size Annual use Incl. CCL Excl. CCL vs Q1 2026 vs Q2 2025
Very small Up to 20,000 kWh a year 38.36p 37.67p +9.5% +3.5%
Small 20,000 to 499,999 kWh 28.59p 27.87p -0.6% -0.1%
Small to medium 500,000 to 1,999,999 kWh 27.67p 27.09p -1.5% 0.0%
Medium 2 to 19.9 GWh 25.17p 24.61p +0.7% -2.5%
Large 20 to 69.9 GWh 24.42p 23.85p +2.1% -0.6%
Very large 70 to 150 GWh 22.70p 22.25p +3.5% +3.8%
Extra large Over 150 GWh 22.25p 21.78p +3.9% +6.1%
All businessesAverage24.51p

Source: DESNZ Quarterly Energy Prices, tables 3.4.1 and 3.4.2, published 29 September 2026. Download the original spreadsheet.

History

Business electricity prices since 2004

Every quarter of the official series. Use the table view for exact figures.

  • Very small businesses
  • Small businesses
  • All businesses (average)
Average electricity price paid by UK businesses by size, quarterly since 2004 0 10 20 30 40 50 Jan 06Jan 08Jan 10Jan 12Jan 14Jan 16Jan 18Jan 20Jan 22Jan 24Jan 26 38.36 28.59 24.51 Average electricity price paid by UK businesses by size, quarterly since 2004 0 10 20 30 40 50 Jan 06Jan 08Jan 10Jan 12Jan 14Jan 16Jan 18Jan 20Jan 22Jan 24Jan 26 38.36 28.59 24.51

p/kWh

Source: DESNZ Quarterly Energy Prices, tables 3.4.1 and 3.4.2 (incl. Climate Change Levy, excl. VAT). Each point is the first month of the quarter.
Show quarterly figures
DateVery small businesses (p/kWh)Small businesses (p/kWh)All businesses (average) (p/kWh)
1 Apr 202638.3628.5924.51
1 Jan 202635.0228.7624.14
1 Oct 202536.1129.5723.99
1 Jul 202537.3628.5623.35
1 Apr 202537.0728.6324.03
1 Jan 202532.8629.4425.75
1 Oct 202434.1830.0625.35
1 Jul 202432.6227.7225.67
1 Apr 202431.0229.8425.99
1 Jan 202432.2232.0927.84
1 Oct 202332.2134.5728.39
1 Jul 202332.4934.3528.33
1 Apr 202334.0133.2926.88
1 Jan 202330.9329.1225.37
1 Oct 202227.8725.4324.80
1 Jul 202225.2724.9922.20
1 Apr 202222.4221.0519.33
1 Jan 202220.0615.8018.14
1 Oct 202118.8418.8917.73
1 Jul 202118.1815.3313.91
1 Apr 202117.7414.8513.58
1 Jan 202117.4115.8514.81
1 Oct 202017.1715.7014.25
1 Jul 202016.9415.1512.88
1 Apr 202017.1415.3913.39
1 Jan 202017.3415.5814.30
1 Oct 201917.6515.5113.96
1 Jul 201916.7714.7012.40
1 Apr 201916.1614.4912.30
1 Jan 201916.3314.8012.90
1 Oct 201816.4514.4412.32
1 Jul 201815.5213.8411.74
1 Apr 201815.2013.3311.49
1 Jan 201814.8713.3611.38
1 Oct 201714.2712.8611.26
1 Jul 201714.3012.5910.74
1 Apr 201713.9312.4410.75
1 Jan 201713.6012.5010.91
1 Oct 201612.6912.3010.88
1 Jul 201612.5812.1010.39
1 Apr 201612.7611.7110.33
1 Jan 201612.9412.1810.54
1 Oct 201512.9612.1810.60
1 Jul 201513.1912.2410.45
1 Apr 201513.4112.1010.46
1 Jan 201513.9012.3510.62
1 Oct 201413.9611.9410.45
1 Jul 201414.0811.7610.14
1 Apr 201413.7811.8310.20
1 Jan 201413.5511.8410.31
1 Oct 201314.1611.5610.16
1 Jul 201313.4011.309.70
1 Apr 201312.3811.219.73
1 Jan 201312.3510.959.57
1 Oct 201212.8510.809.46
1 Jul 201212.6210.809.14
1 Apr 201212.2910.559.16
1 Jan 201212.5410.789.22
1 Oct 201113.3710.649.00
1 Jul 201112.1110.178.44
What to expect

How much should your business pay for electricity?

Illustrative annual costs using the Q2 2026 average price for each usage band, before VAT. Your own quote will depend on your meter, region and contract.

5,000 kWh a year £1,918 at 38.36p per kWh (very small band)
15,000 kWh a year £5,754 at 38.36p per kWh (very small band)
50,000 kWh a year £14,295 at 28.59p per kWh (small band)
250,000 kWh a year £71,475 at 28.59p per kWh (small band)

How much does 1,000 kWh of electricity cost a business?

At the Q2 2026 average of 38.36p per kWh for the very small band, 1,000 kWh of electricity costs about £383.60 before VAT. That figure is all-in: it already carries the standing charge and the Climate Change Levy, spread across every unit. A larger user pays less per unit, so the same 1,000 kWh costs a small to medium-band business about £276.70.

Get my real electricity price
Market direction

Are business electricity prices going up?

Government averages lag by a quarter. Wholesale prices show which way new contract prices are moving now.

Wholesale electricity, 30-day average to 31 Oct 2026

£153.92/MWh

Rising

Wholesale electricity prices have risen 17.5% over the last 30 days and are above their 12-month average (+49%).

Wholesale electricity, 7-day rolling average, last 24 months 0 50 100 150 200 NovJan 25MarMayJulSepNovJan 26MarMayJulSep 173.56 Wholesale electricity, 7-day rolling average, last 24 months 0 50 100 150 200 Jan 25Jul 25Jan 26Jul 26 173.56

£/MWh

Show daily figures
DateWholesale electricity (£/MWh)
31 Oct 2026173.56
30 Oct 2026151.63
29 Oct 2026146.39
28 Oct 2026136.35
27 Oct 2026132.72
26 Oct 2026137.73
25 Oct 2026139.83
24 Oct 2026153.23
23 Oct 2026164.32
22 Oct 2026167.43
21 Oct 2026174.43
20 Oct 2026173.44
19 Oct 2026167.35
18 Oct 2026163.17
17 Oct 2026163.07
16 Oct 2026153.86
15 Oct 2026135.80
14 Oct 2026128.13
13 Oct 2026126.84
12 Oct 2026138.63
11 Oct 2026133.09
10 Oct 2026125.50
9 Oct 2026136.32
8 Oct 2026149.24
7 Oct 2026150.28
6 Oct 2026145.20
5 Oct 2026136.43
4 Oct 2026144.65
3 Oct 2026142.27
2 Oct 2026137.84
1 Oct 2026138.38
30 Sep 2026140.88
29 Sep 2026145.29
28 Sep 2026148.07
27 Sep 2026147.55
26 Sep 2026142.52
25 Sep 2026129.24
24 Sep 2026118.04
23 Sep 2026107.12
22 Sep 2026107.40
21 Sep 2026104.36
20 Sep 2026105.92
19 Sep 2026126.34
18 Sep 2026134.10
17 Sep 2026147.59
16 Sep 2026153.97
15 Sep 2026154.99
14 Sep 2026155.39
13 Sep 2026149.15
12 Sep 2026132.93
11 Sep 2026130.07
10 Sep 2026116.85
9 Sep 2026113.89
8 Sep 2026114.21
7 Sep 2026110.14
6 Sep 2026109.63
5 Sep 2026119.71
4 Sep 2026128.15
3 Sep 2026136.26
2 Sep 2026144.00

What this means for your renewal

Wholesale electricity prices have been climbing. New fixed contracts are priced from forward wholesale costs, so quotes tend to follow the market. If your contract ends in the next six months, it's worth getting quotes now: many suppliers will quote for a contract that starts when your current one ends, so you can lock in a price early.

This describes what has already happened in the market. It is not a forecast. Charts show a 7-day average of daily prices, updated every morning.

What's included in a business electricity price?

The price you pay per kWh covers the wholesale cost of the electricity, the cost of the transmission and distribution networks, government policy costs, metering, the supplier's own costs and margin, and any broker commission. On your bill you'll usually see it split into a unit rate and a daily standing charge.

On top of that you pay the Climate Change Levy (0.801p per kWh from 1 April 2026) and VAT: 20% at the standard rate, or a reduced rate if you use no more than 33 kWh a day on average, or 1,000 kWh a month. Qualifying electricity in Great Britain is zero-rated from 1 October 2026 to 31 March 2027.

Why your price may differ from the average

  • Usage and size. The bands on this page are wide; within a band, smaller users usually pay more per unit.
  • Region. Network charges vary by area. Your MPAN shows which of the 14 regions you're in.
  • When you fixed. A contract agreed when wholesale prices were high stays high until it ends.
  • Contract status. Out-of-contract and deemed rates are usually far higher than fixed rates.
  • Meter type. Day and night, maximum demand and half-hourly meters are priced differently.

Use and cite this data

You're welcome to use these figures in articles, reports and presentations. Please credit Business Energy Expert with a link to this page.

Business Energy Expert (2026) UK business electricity prices. Available at: https://www.businessenergyexpert.com/business-electricity-prices/ (Accessed: 1 Nov 2026).

Download: All bands, every quarter (CSV) · JSON

Original sources

FAQs

Business electricity price FAQs

What is the average business electricity price per kWh in 2026?

In Q2 2026 UK businesses paid an average of 24.51p per kWh for electricity, including the Climate Change Levy and excluding VAT, according to DESNZ. Prices ranged from 38.36p for the smallest users to 22.25p for the largest.

Are business electricity prices going up?

The average business electricity price in Q2 2026 was 1.5% higher than the previous quarter and 2.0% higher than a year earlier. For the direction of new contract prices, watch the daily wholesale tracker.

What is a good business electricity rate?

Compare your all-in price (total bill before VAT divided by kWh used) with the average for your size band in the table above. If you're well above it, you're likely overpaying. On a quote, check the unit rate and the standing charge together, not the unit rate alone.

Why do smaller businesses pay more for electricity?

Standing charges, metering and account costs are spread over fewer units, and smaller users buy less, so they have less negotiating power. This is why the smallest band always has the highest price per kWh.

Do business electricity prices vary by region?

Yes. Network charges differ between regions, so the same business can get different quotes in different parts of the country. The DESNZ averages on this page are UK-wide.

When were business electricity prices highest?

In the DESNZ series, the all-business average peaked in Q4 2023 at 28.39p per kWh, following the 2021 to 2023 wholesale energy crisis.

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