How much energy does my small business use?
Whether you run a start-up or have an established small business, you need to know how much energy your small business uses in order to grow. Not only will this help you to manage your costs and budget effectively, but you can also then compare average business rates from suppliers. Read this blog to find out how you calculate your average business energy consumption – and to get exclusive access to EDF data on what the average small business energy uses in different industries.
One of the most useful things you can know about your small business is how much energy it uses – known as your average energy consumption. Armed with this knowledge, you’ll be able to manage your costs more effectively, budget for the future, identify areas where you could be wasting energy and compare average business energy rates across suppliers.
How do you work out your average energy use?
The quickest and easiest way is to find a recent invoice and then look for the section called ‘tariff details’. Have a look at our blog on payment methods if you’re not sure where to find this – otherwise a peek at the picture below should help you locate it.
Here you’ll find the name of your tariff, but also, importantly, your ‘average consumption’ both for your electricity and gas (or just one if you don’t use both). The amount will be in kWh – and this is what you’re interested in, as it shows how much energy you’re using – not how much you’re paying. The latter is determined by the type of tariff you’re on, as unit rates and standing charges vary by tariff.
Not sure where to find a recent invoice? Have a look in the invoices and payments section in MyAccount or check back through your emails or post. You should have a copy sent to you each month, depending on your paper preferences.
Your average energy consumption is an annual amount – not your energy use for the most recent month. This is because energy use varies significantly throughout the year. Think about how much you have the lights and heating on in January vs. July, for instance. So, an annual figure evens out any differences and makes it easier when comparing like with like when choosing a supplier.
Ideally you want your average consumption to be based on your actual, not estimated, usage over the past year, too. This will give you a more accurate idea of how much energy you’re using.
What if you’re a start-up or moving to new business premises so you don’t know your annual energy use?
It’s much harder to work out your likely outgoings and budgets when you’re starting out and haven’t got any past data to work out your annual energy use. The same goes if you’re expanding and moving into bigger premises (or doing the opposite and downsizing). But if it’s a case of scaling your business up or down, you can get a rough idea of your future costs based on your existing average energy use.
If you’re a start-up though, what can you do?
The good news is industry data is available to tell you how much energy an average business uses – this is also helpful if you know your average energy use, but want to answer the question, ‘is my energy use normal?’
| Size of business | Electricity use (annual) | Gas use (annual) |
| Very small / micro business | Up to 20,000 kWh | Up to 278,000 kWh |
| Small business | 20,000 – 499,000 kWh | 278,000 – 2,777,000 kWh |
We use similar categorisation at EDF to ensure we’re delivering the best service possible for different-sized businesses:
| Size of business | Electricity use (annual) | Gas use (annual) |
| Small business | Up to 100,000 kWh | Up to 300,000 kWh |
| Large business | More than 100,000 kWh | More than 300,000 kWh |
The trouble with averages – even when size is taken into account – is that there can be big differences in energy use depending on what industry you work in. Think about how energy intensive a manufacturing plant might be compared to an architect’s practice, for example.
It’s why we’ve analysed business energy use across our own small business customer base to compare median electricity and gas use for different industries. The data in the table below shows how energy use can vary significantly by industry:
| Industry | Electricity use (annual) | Gas use (annual) |
| Manufacturing (production of goods from food to textiles, media, pharmaceuticals etc.) | 6,299 kWh | 9,393 kWh |
| Arts, entertainment and recreation | 5,790 kWh | 14,445 kWh |
| Real estate (buying, selling, renting and operating real estate) | 1,599 kWh | 11,511 kWh |
| Construction (including building, civil engineering, trades etc.) | 3,303 kWh | 8,217 kWh |
| Education (from primary to further education, driving schools etc.) | 5,991 kWh | 18,114 kWh |
| Transportation and storage (from taxis to freight and cargo handling to postal services etc.) | 6,187 kWh | 6,922 kWh |
| Accommodation and food services (hotels, holiday lets, restaurants, event catering, pubs etc.) | 12,977 kWh | 37,117 kWh |
| Human health and social work (from hospitals to dentists, and care homes to nurseries etc.) | 5,938 kWh | 15,980 kWh |
| Finance (from banks to funds, and leasing to insurance etc.) | 4,172 kWh | 10,972 kWh |
Source: EDF Small Business aggregated data
This industry-specific data should give you a good idea of whether your energy use is typical for the industry you work in or what your likely use might be if you’re just starting out. But remember: even within the same sector, energy use can vary significantly. Compare the energy used by a two-seater barber shop to a full hair salon with 20 chairs, for example.
Also, your individual energy use will be influenced by other factors too, such as: where your small business is based, how your business operates and any energy efficiency measures you might have installed (e.g. solar panels or energy-efficient lighting).
What can you do now you know your average business consumption?
As they say, knowledge is power! So now you know your average energy use, some of the things to consider are:
- If you’re getting the best deal for your energy, or if you want to shop around (remember, you get our cheapest business energy prices when you go direct).
- What type of tariff is best for you – this film from Robyn is helpful for understanding how to use your average annual consumption to work out if a zero standing charge tariff might be suitable for your business or take a look at this blog on how to choose the right tariff for your business.
- How you can reduce your business energy consumption – these nine tips could help you to get started or consider a business energy audit: we have a free audit template to download.
- Have you had a smart meter installed? This will ensure you’re only billed for the energy you use, but it could also help you identify any energy-intensive items or machinery. It’s quick and easy to request a smart meter installation through our website.
- Your small business energy efficiency – Energy Hub in MyAccount is a powerful online tool that gives you detailed insights into your energy use so you can identify any anomalies. Have a read of this blog to make sure you’re getting the most out of it and, if you’re after industry-specific advice, have a scroll of our business energy-saving advice page to get more tips for your particular industry.
One final thing: Make sure you do an annual check of your energy use as part of your general business admin – not just when the renewal date is up on your tariff! This will help you spot any changes that might otherwise go unnoticed. It’ll also help you stay on track with any energy-efficiency goals you put in place. Kick things off with our guide on getting your energy account in order.
