Understanding how business energy prices vary by location is increasingly important for UK companies planning budgets, opening new premises, or benchmarking costs against regional competitors. Here is the data for business electricity and gas prices across the largest towns and cities in the UK.
This report helps business owners understand how geography affects unit rates, annual bills and expected monthly energy costs — and why the postcode effect is meaningful but rarely the biggest driver of what a company pays.
Why location matters for business energy prices
Although wholesale energy prices apply nationally, the final rates that SMEs pay vary by region. Distribution charges, network losses and supplier pricing strategies influence what business customers are charged in different parts of the UK.
As a result, companies in London and the South East often face slightly higher electricity and gas prices, while businesses in Scotland, Wales, Northern Ireland and the North typically benefit from lower regional rates.
For business owners comparing sites or assessing energy cost risks, understanding these regional variations can improve financial planning and help identify potential savings.
Comparison table: business energy prices in the UK’s 30 largest towns and cities
This table shows modelled unit rates and estimated bills for a typical SME. Use it to benchmark your own business energy costs by location.
| # | City | Region | Est. electricity rate (p/kWh) | Est. gas rate (p/kWh) | Annual electricity bill (£) | Annual gas bill (£) | Combined monthly cost (£) |
|---|---|---|---|---|---|---|---|
| 1 | London | London | 28.0 | 7.49 | 7,194 | 1,628 | 735 |
| 2 | Manchester | North West | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 3 | Birmingham | West Midlands | 27.2 | 7.27 | 6,994 | 1,584 | 715 |
| 4 | Glasgow | Scotland | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 5 | Southampton | South East | 27.7 | 7.42 | 7,119 | 1,614 | 728 |
| 6 | Liverpool | North West | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 7 | Newcastle | North East | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 8 | Nottingham | East Midlands | 27.2 | 7.27 | 6,994 | 1,584 | 715 |
| 9 | Sheffield | Yorkshire & Humber | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 10 | Bristol | South West | 27.5 | 7.34 | 7,069 | 1,599 | 721 |
| 11 | Belfast | Northern Ireland | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 12 | Brighton | South East | 27.7 | 7.42 | 7,119 | 1,614 | 728 |
| 13 | Leicester | East Midlands | 27.2 | 7.27 | 6,994 | 1,584 | 715 |
| 14 | Edinburgh | Scotland | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 15 | Bournemouth | South West | 27.5 | 7.34 | 7,069 | 1,599 | 721 |
| 16 | Cardiff | Wales | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 17 | Coventry | West Midlands | 27.2 | 7.27 | 6,994 | 1,584 | 715 |
| 18 | Leeds | Yorkshire & Humber | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 19 | Middlesbrough | North East | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 20 | Stoke-on-Trent | West Midlands | 27.2 | 7.27 | 6,994 | 1,584 | 715 |
| 21 | Reading | South East | 27.7 | 7.42 | 7,119 | 1,614 | 728 |
| 22 | Sunderland | North East | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 23 | Preston | North West | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 24 | Birkenhead | North West | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 25 | Hull | Yorkshire & Humber | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 26 | Newport | Wales | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 27 | Swansea | Wales | 26.1 | 6.98 | 6,719 | 1,526 | 687 |
| 28 | Bradford | Yorkshire & Humber | 26.6 | 7.13 | 6,844 | 1,556 | 700 |
| 29 | Southend-on-Sea | East of England | 27.7 | 7.42 | 7,119 | 1,614 | 728 |
| 30 | Luton | East of England | 27.7 | 7.42 | 7,119 | 1,614 | 728 |
The postcode effect is real but not the largest cost driver
The difference between the cheapest and most expensive locations in our model is typically £40–£50 per month. This matters for multi-site businesses, but it is far smaller than savings achieved through usage reduction or switching tariffs.
London and the South East face the highest business energy prices
London, Reading, Brighton, Southend and Luton consistently sit at the top of the price range, with modelled monthly costs around £725–£735 for a typical SME.
Scotland, Wales, Northern Ireland and the North of England remain more affordable
Cities such as Glasgow, Edinburgh, Cardiff, Swansea, Newcastle and Belfast show lower regional rates, averaging £685 per month for the same consumption profile.
Electricity usage has the biggest influence on overall cost
Cutting electricity consumption by 20% saves roughly £1,300–£1,400 per year, which is significantly more than the regional variation between two major cities.
Standing charges represent a growing share of small-business energy bills
With combined electricity and gas standing charges exceeding £550–£650 per year, even low-consumption businesses face high baseline costs irrespective of region.
Compare business energy prices for your location
If you want to understand how these estimates compare to real-world tariffs for your business, enter your postcode and usage into the EnergyCosts.co.uk comparison tool. You’ll receive live prices from leading UK business energy suppliers, tailored to your premises and consumption profile.