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Electricity and gas for restaurants

Electricity and gas prices for restaurants and cafes are on the rise in the UK. Save time and money by comparing your electricity and gas deals today using our free to use business energy price comparison tool.

If you own a restaurant or a café business, you will know that the energy costs are a major part of your regular business expense. For those businesses that are on variable tariffs, if wholesale electricity and gas prices rise, your business will also see the rise in your electricity and gas bills.

For businesses like restaurants and cafes, it is important not just to keep an eye on your electricity and gas bills but also keep an eye on your electricity and gas contracts. If your energy contract expires and you do not sign up a new one or renew your contract, you will by paying very high prices as being a customer on deemed rates.

Use Business Energy price comparison (link to price comparison page) to see the current electricity and gas tariffs and switch to one of them that suits you the best. Being a restaurant owner, can also be a daunting challenge that will keep you busy and owners often neglect to search around for best available tariffs. That is where Business Energy Shop comes in.

With over 18 years of experience in working with restaurants of all sizes and types spread across the UK, we can help our business customer find the best deals for their electricity and gas. Our trained energy advisers can work with you and explain you all the best options available out there. They can even help you with your current billing inquiries, meter reading issues or your energy usage at your business.

What is included in your electricity and gas bill

Usually when you get your electricity or gas bills for your restaurant, most of the cost you will see is the unit rate, standing charge and any VAT or tax on the bill. However, there are other hidden costs that are also part of your electricity and gas bill, such as:

  • Wholesale costs: the amount your supplier has to pay to a generator or a transporter for the electricity and gas you use at your restaurant. Wholesale costs are variable costs that fluctuate with the market but if you are on a fixed term contract, these costs will not affect you as you will have the fixed unit rates.

  • Network costs: what your supplier has to pay to use the transmission and distribution networks to deliver energy from power stations to your premises.

  • Environmental costs: All energy suppliers in the UK have an obligation to be part of certain environmental schemes introduced by the government and these costs are the part of those schemes

  • Operating costs: these are the costs of running an energy supply business that your energy supplier has to manage.

  • Climate Change Levey (CCL): a tax on each unit of energy your business uses, designed to encourage businesses to become more energy efficient and reduce their carbon footprint. You won’t have to pay this if your business uses less than 33 kWh of electricity per day, or less than 145 kWh of gas per day.

  • VAT: a tax charged on goods and services - depending on how much energy you use; you might be charged at the standard 20% rate or a reduced rate.

Most restaurants have two places with highest energy usage; the first is, of course, the kitchen and the second is the dining area. In the kitchen, both gas and electricity are used for cooking; and lighting and air-conditioning for the dining area. By keeping an eye on the energy usage in these areas and having energy efficiency equipment can reduce energy consumption in your restaurant; thus, bringing the cost of electricity and gas down.
According to a recent survey by Carbon Trust, the UK business industry wastes more than £7 million a day due to poor measures in reducing gas and electricity usage.

To switch your business energy today call 0345 021 5000

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