Manchester is one of the UK’s fastest-growing commercial centres, home to tens of thousands of SMEs across digital industries, finance, manufacturing, logistics, hospitality and professional services. While the city enjoys a strong business ecosystem and competitive operational costs, local companies still face rising commercial energy prices — making it crucial for business owners to understand how energy costs in Manchester compare with the rest of the UK, what drives regional differences, and how to secure better deals from suppliers.
Our in-depth location report outlines typical business electricity and gas prices in Manchester, based on the 2025 EnergyCosts.co.uk modelling dataset. Whether you run a small retail unit in the Northern Quarter, a café in Salford, or a growing office team in Spinningfields, this guide offers a detailed benchmark for your energy spending and practical steps to reduce costs.
What businesses typically pay for gas and electricity in Manchester
To provide consistent comparisons across the UK’s largest towns and cities, we modelled a standard SME with:
- 25,000 kWh of electricity use per year
- 20,000 kWh of gas use per year
This level of consumption applies to a broad range of Manchester businesses, including tech offices, workshops, co-working spaces, warehouses, restaurants and independent retail stores.
Manchester’s regional pricing position
Manchester benefits from a small –1% regional discount relative to the national average. This adjustment is based on the North West’s distribution charges, network efficiencies and supplier costs, all of which tend to be lower than in the South East and London.
Estimated SME unit rates in Manchester are:
- Electricity: 26.6p/kWh
- Gas: 7.13p/kWh
Estimated annual and monthly bills for Manchester SMEs
Applying these rates to our consumption model gives:
- Electricity bill: £6,844 per year
- Gas bill: £1,556 per year
- Combined annual bill: ~£8,400
- Combined monthly energy cost: ~£700
These figures place Manchester among the more affordable major English cities for business energy pricing, closer to Leeds, Liverpool and Sheffield than to higher-priced areas such as London, Brighton, Reading and Southend-on-Sea.
Why business energy prices in Manchester are lower than average
A variety of regional structural factors work in Manchester’s favour:
1. Efficient North West distribution networks
The North West electricity distribution region has historically maintained:
- Lower network reinforcement costs
- Less congestion compared with London
- Moderate grid losses
- Good renewable integration and diversified supply
These factors contribute to slightly lower business electricity prices.
2. Competitive supplier presence
Manchester hosts many energy-intensive industries. This leads to:
- Higher competition among business suppliers
- More tailored SME tariff options
- Stable pricing compared with volatile southern regions
3. Lower supplier operating costs
Compared with London and the South East, energy suppliers often face lower staffing, office and logistics costs in the North West, which can indirectly support cheaper tariffs.
4. Strong commercial property stock
Modern developments and refurbished commercial units in Manchester are typically more energy-efficient, reducing gas and electricity requirements for many SMEs and smoothing demand.
How Manchester businesses can reduce energy bills further
Even with below-average regional prices, Manchester SMEs still face historically elevated commercial energy costs. Fortunately, several strategies can reduce annual bills significantly.
1. Switch supplier at contract renewal
A large number of Greater Manchester businesses sit on rollover or deemed contract rates — often 20–40% above competitive tariffs. Switching at the right time can save hundreds or even thousands per year.
2. Use accurate usage data for quotes
Using smart meter data or actual kWh consumption ensures suppliers provide accurate, lower quotes rather than conservative estimates. Businesses with steady usage patterns benefit most.
3. Reduce energy use during peak working hours
Most Manchester offices and retailers consume energy heavily between 9am and 6pm. Savings can come from:
- LED lighting upgrades
- Improved insulation
- Automatic HVAC controls
- Equipment shut-down policies for staff
- Timer-based heating management
Small reductions in peak electricity usage can significantly reduce annual spend.
4. Install smart meters across all sites
Smart meters help SMEs identify waste, monitor usage hourly, and spot operational inefficiencies. Multi-site businesses across Manchester, Salford, Trafford and Stockport particularly benefit from consolidated data reporting.
5. Review standing charges, not just unit rates
Standing charges typically exceed £500 per year for businesses. Some Manchester suppliers offer lower daily charges to SMEs prioritising predictable cost control.
How Manchester compares with other major UK business centres
Compared with the UK’s largest cities:
- Cheaper: Manchester is more affordable than London, Brighton, Southampton, Reading and Luton.
- Similar: Prices align closely with Liverpool, Preston, Leeds and Sheffield.
- More expensive: Manchester is slightly higher than Glasgow, Edinburgh, Cardiff and Belfast, but only by around £10–£15 per month.
For most businesses, consumption and contract choice matter far more than geography.
Comparing business energy suppliers in Manchester
Every major UK business energy supplier services Manchester — including fixed, variable, renewable and flexible pricing structures. SMEs in the city benefit from competitive market conditions, making comparison essential.
A business comparing 5–10 suppliers may find:
- Lower unit rates
- Improved standing charges
- More suitable contract lengths
- Tariffs designed for growing or multi-site operations
Using EnergyCosts.co.uk ensures your quotes reflect your Manchester postcode, usage pattern and business sector, giving you the best chance of securing a lower price.
Get business energy quotes for Manchester
If you want to benchmark your organisation’s costs and find cheaper business electricity and gas deals, use EnergyCosts.co.uk to compare live business energy prices in Manchester. You’ll receive accurate, up-to-date quotes based on your actual consumption — helping you cut costs and improve operational efficiency.