Liverpool is one of the North West’s most vibrant commercial centres, known for its thriving SME community across logistics, creative industries, finance, professional services, retail, healthcare, hospitality, and maritime trade. With regeneration continuing across the city and an expanding business base stretching from the Baltic Triangle to the Knowledge Quarter, Liverpool remains a highly attractive location for small and medium-sized enterprises. One advantage for local companies is that Liverpool typically enjoys more competitive business energy prices than many southern cities, helping reduce operational overheads at a time when energy remains a major cost concern for UK firms.
Our detailed location guide, based on EnergyCosts.co.uk’s 2025 modelling dataset, explains business energy prices in Liverpool, including typical unit rates, annual bills, and practical strategies for reducing energy spend.
What SMEs typically pay for gas and electricity in Liverpool
To benchmark cities consistently across the UK, we modelled a representative SME using:
- 25,000 kWh of electricity per year
- 20,000 kWh of gas per year
These usage levels reflect typical consumption patterns for Liverpool’s cafés, offices, workshops, agencies, shops, small manufacturers, medical practices and entertainment venues.
Liverpool’s regional pricing position
Liverpool benefits from a –1% regional adjustment relative to the UK average, placing it among the more affordable cities for commercial energy. The North West energy distribution region is known for relatively efficient infrastructure, moderate maintenance demands and competitive supplier dynamics.
Estimated SME unit rates for Liverpool are:
- Electricity: 26.6p/kWh
- Gas: 7.13p/kWh
Estimated annual and monthly bills for Liverpool SMEs
Applying these rates to our standard model gives:
- Electricity: £6,844 per year
- Gas: £1,556 per year
- Combined annual bill: ~£8,400
- Combined monthly cost: ~£700
This puts Liverpool on a par with Manchester, Preston and Sheffield, and cheaper than Birmingham, Nottingham, Bristol or any city in the South East.
Why business energy prices in Liverpool are competitive
A variety of structural, geographical and market factors help keep commercial energy costs lower in Liverpool than in many other major UK cities.
1. Efficient distribution network
The North West grid benefits from:
- Moderate reinforcement and upgrade requirements
- Stable maintenance costs
- Predictable network losses
- Strong industrial and commercial base
These factors help reduce electricity distribution charges, which form part of every business tariff.
2. Lower supplier operating costs
Compared with London and the South East, suppliers face lower staffing, property and service costs in Liverpool. These savings often translate into lower tariffs.
3. Strong competition between suppliers
Liverpool’s concentration of SMEs creates a competitive marketplace for business energy providers. With large numbers of potential customers across Merseyside, suppliers are motivated to offer attractive fixed-term contracts and incentives.
4. Balanced commercial demand
Liverpool’s business landscape does not create the peak-demand pressures seen in some southern cities. This contributes to more stable regional pricing.
How Liverpool businesses can reduce energy bills even further
Despite competitive regional pricing, SMEs in Liverpool still face significant energy costs due to high national energy prices and ongoing market fluctuations. These strategies help reduce overheads.
1. Switch supplier at the end of your contract
Many businesses unknowingly remain on expensive rollover or deemed tariffs. Switching at renewal is often one of the fastest ways to reduce annual energy spend — with savings of 20–40% possible depending on market conditions.
2. Provide accurate consumption data for quotes
Quotes are more competitive when based on real kWh figures. If your business has a smart meter or recorded usage patterns, suppliers can offer more precise rates and avoid inflated estimates.
3. Reduce electricity consumption during peak hours
Electricity accounts for the majority of SME energy spend. Liverpool businesses can reduce costs by:
- Switching to LED lighting
- Installing motion sensors in staff and storage areas
- Scheduling high-load equipment outside peak times
- Improving HVAC efficiency
- Reducing standby power use
Even small reductions can deliver meaningful year-on-year savings.
4. Improve gas heating efficiency
Many Liverpool businesses — especially those in older buildings — rely heavily on gas heating. Optimisation steps include:
- Better insulation
- Upgraded boilers or unit heaters
- Thermostat controls and zoning
- Draught reduction
- Weather-compensation systems
5. Use smart meters to identify inefficiency
Smart meters provide real-time usage insights, helping Liverpool SMEs understand their consumption patterns, spot inefficiency and actively manage bills.
How Liverpool compares with other major UK cities
Liverpool’s business energy costs stack up favourably across the country.
- Cheaper than: Birmingham, Bristol, Nottingham, Southampton, Reading, Brighton, Southend and London
- Similar to: Manchester, Sheffield, Preston, Birkenhead, Leeds
- More expensive than: Only slightly higher than Scotland and Wales, by around £10–£15 per month
The differences between regions are relatively small compared to the savings achieved by switching suppliers or reducing consumption.
Comparing business energy suppliers in Liverpool
Every major UK business energy supplier serves the Liverpool area, offering a broad range of tariffs. Local SMEs benefit from comparing:
- 12–36 month fixed-rate contracts
- Standing charges, which vary significantly between providers
- Renewable-backed tariffs
- Multi-site options for businesses operating across Merseyside, including Wirral, Bootle, St Helens and Southport
- Specialist tariffs for hospitality, retail, healthcare and creative industries
Comparing multiple suppliers is essential because quotes can vary widely, even within Liverpool postcodes.
Get business energy quotes for Liverpool
To benchmark energy usage and find cheaper electricity and gas tariffs, use EnergyCosts.co.uk to compare live business energy prices in Liverpool. Enter your postcode and annual consumption to receive tailored quotes from leading suppliers — helping your business secure the most competitive tariff available.