Business Electricity Bill Breakdown
Understand what makes up your UK business electricity bill in 2025-2026. See how every penny per kWh is allocated across wholesale costs, network charges, policy levies, and taxes.
Average Rate (excl VAT)
23.47p/kWh
Average Rate (incl VAT)
28.2p/kWh
Non-Commodity Costs
64% of bill
VAT Rate
20% standard
Source: DESNZ Quarterly Energy Prices Q3 2025 (published 18 Dec 2025). Average across all non-domestic consumer sizes.
Where Does Your Money Go?
Hover over or tap each segment to see how your business electricity cost per kWh is split across different charges.
Total
23.47p
per kWh
Bill Components Explained
Click on each component to learn more about what it covers and why you pay it. Percentages are of the total bill excluding VAT.
Wholesale Energy
8.45p/kWh
Cost of electricity purchased on the wholesale market
Network Charges (DUoS)
3.52p/kWh
Distribution Use of System charges for the local network carrying electricity to your premises
Network Charges (TNUoS)
1.17p/kWh
Transmission Network Use of System charges for the high-voltage national grid
Renewables Obligation (RO)
3.52p/kWh
Levy supporting existing large-scale renewable electricity generators
Balancing (BSUoS)
1.41p/kWh
Balancing Services Use of System charges for keeping the grid stable
Contracts for Difference (CfD)
1.41p/kWh
Levy supporting newer renewable and nuclear generation projects
Feed-in Tariffs (FiT)
0.94p/kWh
Levy supporting small-scale renewable generation
Capacity Market (CM)
0.94p/kWh
Charges to ensure sufficient generation capacity is available
Climate Change Levy (CCL)
0.78p/kWh
Environmental tax on energy supplied to businesses
Losses & Other Charges
0.7p/kWh
Energy lost in transmission/distribution networks and other levies
Supplier Margin & Costs
0.7p/kWh
Your supplier's operating costs and profit margin
Average Rates by Business Size
Non-domestic electricity prices vary significantly by consumption level. Prices include CCL but exclude VAT.
| Business Size | Average Rate (p/kWh) |
|---|---|
| Very Small | 41.15p |
| Small | 28.27p |
| Small/Medium | 27.81p |
| Medium | 24.65p |
| Large | 23.01p |
| Very Large | 20.98p |
| Extra Large | 20.49p |
Source: DESNZ Quarterly Energy Prices Table 3.4.2, Q3 2025 (published 18 December 2025)
How Business Bills Differ from Domestic
Business electricity bills have several key differences from household energy bills.
20% VAT vs 5% Domestic
Businesses pay the standard 20% VAT rate on energy, compared to just 5% for domestic customers.
Climate Change Levy
The CCL is an environmental tax that applies only to non-domestic energy supply. The 2025-26 rate is 0.775p/kWh.
Half-Hourly Metering
Larger businesses use half-hourly (HH) meters, meaning their charges vary by time of day with red, amber, and green time bands.
No Price Cap
The Ofgem Energy Price Cap only applies to domestic customers. Businesses negotiate rates directly with suppliers.
Capacity Charges
Businesses may pay capacity charges (in kVA) for their agreed supply capacity. Exceeding agreed capacity incurs excess charges.
Pass-Through Contracts
Many business contracts use pass-through pricing, where third-party charges are billed at cost rather than bundled.