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VAT on electricity and gas is a common point of confusion for UK businesses. Energy bills often represent a sizeable business expense, so understanding how VAT applies, and when it can be reclaimed, has the potential to make a noticeable difference to your overall energy costs. The answer depends on factors like your VAT registration status, how your business uses energy and the type of premises involved in your operation.
For many business owners, a new energy bill can prompt a second look at the figures and raise doubts about the value they’re getting from a current supplier. There are many reasons you may be paying too much, and by fully understanding the details of your current contract, you can identify whether you are able to switch to a better deal and the potential cost savings.
A business energy audit gives you a clear, strategic picture of your organisation’s energy waste. It shows how much power you use, when you use it and where inefficiencies sit across your sites. This process helps you identify energy-saving opportunities that improve day-to-day efficiency and reduce unnecessary costs. With a better understanding of your usage patterns, we guide you towards informed decisions that lower spend and support your carbon goals.
Volatile wholesale gas prices have become a fact of life in the years since the post-pandemic surge in demand, and the conflict in Ukraine tightened the global supply. It's a combination that has filtered through to the commercial market, with higher costs and rising standing charges pushing average business gas prices in the UK far beyond what most firms were used to paying.
Understanding your electricity costs helps you keep control of your budget. Prices vary across suppliers and regions, so the question “how much does electricity cost for a small business?” does not have one set answer. Every business is unique, and the way you use electricity will depend on the work you do, your opening hours and the equipment you rely on each day.