Category: Costs

Business Electricity Price per kWh in 2026: UK Averages

What UK businesses paid per kWh for electricity in Q2 2026 by size band, from the government's supplier survey, and what it means for a solar PPA.

The average UK business paid 24.51p per kWh for electricity in the second quarter of 2026, including the Climate Change Levy but before VAT. That is the all-band figure from the government's quarterly survey of energy suppliers, and it hides a wide spread: the largest users paid 22.25p and the smallest 38.36p. Below is what each size of business paid, how that moved over the year, how much of it was the levy, and how to use the figures when you weigh up a solar PPA.

What businesses paid per kWh in 2026, by size

DESNZ sorts non-domestic consumers into seven bands by how much electricity they buy in a year. Each average is the band's total spend divided by its total kWh, and it covers every element of the price except VAT. One table leaves the Climate Change Levy out and the other includes it.

Source: DESNZ, Prices of fuels purchased by non-domestic consumers (QEP tables 3.4.1 and 3.4.2), published 29 September 2026, tables 3.4.1 and 3.4.2, pence per kWh, excluding VAT. Q2 2026 is provisional. Read 14 Oct 2026.

Two things stand out. Price falls as consumption rises: the smallest band paid about 72% more per kWh than the largest. And the step is steepest at the bottom, where a business buying under 20 MWh a year paid almost 10p more per kWh than one buying 20 to 499 MWh.

How prices moved over the year

Between the second quarter of 2025 and the same quarter of 2026, the all-band average rose by about half a penny, from 24.03p to 24.51p. The middle of the market was flat or slightly cheaper: the Small/Medium band was unchanged at 27.67p and the Medium band fell from 25.81p to 25.17p. The two ends moved the other way. Extra Large users paid 1.28p more and Very Small users 1.29p more.

Moves of a penny or so are small next to the gaps between bands. When you benchmark a quote, which band you sit in matters far more than which quarter you pick.

How much of the price is the Climate Change Levy

The difference between the two tables is the levy. DESNZ estimates that the average CCL actually paid on electricity in April to June 2026 was 0.54p per kWh. That is below the main rate of 0.801p per kWh that has applied since 1 April 2026, which is what you would expect when businesses with a Climate Change Agreement pay only 8% of the main rate and some users, such as charities for their non-business activity, pay none.

Average CCL paid: DESNZ, Prices of fuels purchased by non-domestic consumers (QEP tables 3.4.1 and 3.4.2), published 29 September 2026, sheet 'CCL Paid'. Main and reduced rates: HMRC — Climate Change Levy: changes to rates from 1 April 2026.

What to compare a solar PPA rate with

Start with your own bills. Add up the unit charges, leave out standing charges and VAT, and divide by the kWh billed. If you cannot get the bills, use the DESNZ figure for your band that includes CCL. That is the price a kWh from an on-site array displaces, because a direct supply from the provider's own project company carries no levy. Then put the quote next to it. Our guide to solar PPA rates sets out year-one rates by system size, what an escalator adds over a 20-year term, and a four-step check for any quote.

Remember that the DESNZ averages are averages. Your own contract can sit some way above or below your band, depending on when you fixed your price and what your supplier passes through.

Where the figures come from

DESNZ publishes these averages every quarter from a survey of energy suppliers. The latest quarter is always provisional and is revised in later editions. The next update is due on 17 December 2026, so check it before you put a single figure into a board paper.