Leicester is one of the East Midlands’ most commercially diverse cities, home to a broad mix of SMEs across manufacturing, textiles, logistics, food production, retail, hospitality, tech, healthcare and professional services. Its central location, thriving universities, strong transport links and multicultural business community make Leicester an attractive place to operate — but like all UK cities, energy prices remain a major overhead for local companies. Leicester’s business energy rates for gas and electricity are close to the national average, meaning SMEs must be proactive to control electricity and gas costs.
Our detailed location guide uses EnergyCosts.co.uk’s 2025 modelling dataset to provide a view of business energy prices in Leicester, including modelled unit rates, estimated annual bills and recommendations to help small and medium-sized businesses reduce their costs.
What SMEs typically pay for gas and electricity in Leicester
For consistency across all major UK cities in our report, the following usage profile is used to benchmark pricing:
- 25,000 kWh of electricity per year
- 20,000 kWh of gas per year
These usage levels reflect typical consumption across Leicester’s SMEs, including offices, workshops, factories, retail units, restaurants, salons and creative studios.
Leicester’s regional pricing position
Leicester sits in the East Midlands, where distribution network costs are moderate and supplier operating expenses are relatively stable. This results in a +1% regional uplift compared with the UK average.
Estimated SME unit rates in Leicester:
- Electricity: 27.2p/kWh
- Gas: 7.27p/kWh
Estimated annual and monthly bills for Leicester SMEs
Applying these regional rates gives the following modelled annual costs:
- Electricity: £6,994 per year
- Gas: £1,584 per year
- Combined annual bill: ~£8,578
- Combined monthly cost: ~£715
These figures place Leicester firmly in the middle tier of UK energy cost locations, similar to Nottingham, Coventry and Stoke-on-Trent.
Why business energy prices in Leicester sit near the UK average
Several regional and structural factors help explain Leicester’s mid-range pricing position.
1. Balanced distribution network costs
The East Midlands generally features:
- Moderate network reinforcement needs
- Predictable regional demand
- Stable transmission infrastructure
- Lower congestion than the South East
These conditions keep distribution charges stable but not discounted.
2. Diverse commercial consumption
Leicester’s SME base includes energy-intensive sectors such as textiles, food production and engineering, alongside lower-usage sectors like professional services. This diversity produces balanced, predictable demand rather than extreme peaks or troughs.
3. Supplier operating costs
Leicester’s relatively low service and property costs compared with London help maintain competitive supplier tariffs — but not low enough to create major regional discounts.
4. Strong competition among suppliers
Leicester’s dense SME community encourages competition between energy providers, helping keep pricing reasonable across 12–36 month contracts.
How Leicester businesses can reduce energy bills
Even with mid-range regional pricing, Leicester SMEs can significantly reduce their energy costs through effective procurement and usage strategies.
1. Switch suppliers at contract renewal
Remaining on rollover or deemed rates can cost a local business 20–40% more per year. Switching suppliers at the right time consistently delivers some of the biggest savings.
2. Provide accurate annual usage when requesting quotes
Using precise consumption data (from meter readings or a smart meter) results in more competitive quotes than relying on estimated usage.
3. Reduce electricity consumption
Electricity is typically the largest component of SME energy spending. Leicester businesses can lower costs by:
- Upgrading to LED lighting
- Using occupancy sensors in low-traffic areas
- Improving HVAC efficiency
- Turning off equipment after trading hours
- Reducing reliance on high-load machinery during peak periods
- Optimising refrigeration and cooking equipment in food-led businesses
These measures often deliver rapid cost savings.
4. Improve gas heating efficiency
Older industrial and retail buildings in Leicester can waste heat due to poor insulation. Savings can be achieved by:
- Upgrading boilers
- Installing programmable thermostats
- Improving insulation and sealing draughts
- Dividing large spaces into heating zones
- Reducing heating hours based on occupancy
5. Use smart meters for better oversight
Smart meters allow SMEs to monitor usage patterns, detect inefficiencies, reduce waste and forecast bills more accurately.
How Leicester compares with other major UK cities
Leicester’s business energy costs place it in a comfortable middle position nationally.
- More expensive than: Manchester, Liverpool, Sheffield, Leeds, Newcastle, Glasgow, Edinburgh, Cardiff, Belfast
- Similar to: Nottingham, Coventry, Stoke-on-Trent, Birmingham
- Cheaper than: London, Brighton, Southampton, Bristol, Reading, Southend, Luton
While differences in regional pricing do exist, they are far smaller than the savings gained through active energy management and supplier switching.
Comparing business energy suppliers in Leicester
Every major UK business energy supplier operates in Leicester, offering a variety of tariff options. When comparing deals, SMEs should review:
- Electricity and gas unit rates
- Standing charges, which vary widely
- Contract lengths (typically 12, 24 or 36 months)
- Renewable tariff options
- Multi-site contracts for businesses with locations in Loughborough, Hinckley, Melton Mowbray or Market Harborough
- Sector-specific tariffs for manufacturing, retail and hospitality
Comparing quotations is essential, as supplier pricing can differ significantly even within the same postcode.
Get business energy quotes for Leicester
To compare the latest business electricity and gas prices in Leicester, visit EnergyCosts.co.uk. Enter your postcode and annual energy usage to receive tailored quotes from leading UK suppliers — helping your business secure competitive rates and reduce operational expenditure.