Middlesbrough is one of the most important commercial centres in the North East, home to a wide range of SMEs across engineering, advanced manufacturing, digital services, retail, logistics, chemical processing, professional services, hospitality and the public sector. With its strong industrial heritage, strategic location near major ports, and ongoing regeneration across the Tees Valley region, Middlesbrough provides fertile ground for business growth. A key operational concern for many local companies is the cost of electricity and gas — and the good news is that Middlesbrough sits within one of the cheapest regions in the UK for business energy.
Our detailed location guide uses EnergyCosts.co.uk’s 2025 modelling dataset to explain business energy prices in Middlesbrough, including regional unit rates, typical annual bills and practical strategies SMEs can implement to reduce costs.
What SMEs typically pay for gas and electricity in Middlesbrough
To ensure consistent benchmarking across all UK locations, we use a standard SME consumption profile:
- 25,000 kWh of electricity per year
- 20,000 kWh of gas per year
This level of usage suits a wide range of Middlesbrough enterprises, from workshops and industrial units to offices, healthcare providers, hospitality businesses and small retail operations.
Middlesbrough’s regional pricing position
Middlesbrough is located in the North East energy region — one of the cheapest in the country. The region receives a –3% price adjustment relative to the national average due to its efficient electricity networks and competitive supply market.
Estimated SME unit rates in Middlesbrough:
- Electricity: 26.1p/kWh
- Gas: 6.98p/kWh
Estimated annual and monthly bills for Middlesbrough SMEs
Using these rates, the modelled SME energy costs are:
- Electricity: £6,719 per year
- Gas: £1,526 per year
- Combined annual bill: ~£8,245
- Combined monthly cost: ~£687
These figures place Middlesbrough firmly in the lowest energy cost tier in the UK, alongside Newcastle, Glasgow, Edinburgh, Cardiff and Belfast.
Why business energy prices in Middlesbrough are low
Several longstanding regional and infrastructural factors contribute to Middlesbrough’s favourable energy pricing environment.
1. Efficient North East electricity distribution network
The region benefits from:
- Lower grid reinforcement costs
- Predictable industrial demand
- Reduced congestion compared with southern cities
- Stable long-term maintenance requirements
These efficiencies translate into lower electricity distribution charges — a core component of business tariffs.
2. Strong energy-intensive industrial base
Middlesbrough’s chemical, logistics and manufacturing sectors create consistent baseload demand. This industrial stability helps maintain competitive tariffs.
3. Lower supplier operating expenses
Compared with London, Reading, Brighton, Bristol and the South East, suppliers incur lower costs in Middlesbrough for:
- Staff
- Property and office space
- Logistics
- Customer service operations
These savings support the lower pricing seen in the region.
4. Competitive regional market
Suppliers actively compete for SME customers across Teesside, contributing to stronger-than-average tariff variation and improved deal availability.
How Middlesbrough businesses can reduce energy bills even further
Although Middlesbrough is a low-cost region, SMEs can still reduce spending significantly.
1. Switch suppliers when your contract ends
Many SMEs unknowingly remain on rollover or deemed tariffs, which are often 20–40% more expensive. Switching at renewal remains the fastest way to reduce bills.
2. Provide accurate usage data for quotes
Exact kWh usage — ideally via smart meter data — ensures suppliers calculate quotes based on your actual consumption rather than inflated estimates.
3. Reduce electricity usage
Electricity makes up the largest portion of SME energy bills. Middlesbrough businesses can reduce consumption by:
- Replacing fluorescent or halogen lighting with LEDs
- Installing occupancy sensors in storage and back-office areas
- Using timers for signage, heating and lighting
- Reducing equipment left on standby
- Improving HVAC maintenance and efficiency
These measures produce strong savings across all sectors.
4. Cut gas heating costs
Many Middlesbrough business premises — especially older industrial units and retail spaces — are inefficiently heated. Improvements include:
- Upgrading boilers
- Using zoning controls in large spaces
- Draught-proofing and insulation
- Installing programmable thermostats
- Reducing heating during nights and weekends
5. Install smart meters
Smart meters provide real-time usage insights that help identify inefficiencies, improve forecasting and reduce wastage.
How Middlesbrough compares with other UK cities
Middlesbrough consistently ranks as one of the most affordable energy locations.
- Cheaper than: London, Brighton, Reading, Southampton, Bristol, Birmingham, Nottingham, Leeds, Sheffield
- Similar to: Newcastle, Glasgow, Edinburgh, Cardiff, Belfast
- Slightly cheaper than: Manchester, Liverpool, Preston (by around £10–£15 per month)
Regional pricing differences highlight Middlesbrough’s cost advantage for growing SMEs.
Comparing business energy suppliers in Middlesbrough
All major UK business energy suppliers serve the Teesside area, offering a broad range of tariffs. When comparing deals, Middlesbrough SMEs should consider:
- Unit rates and standing charges
- Contract lengths (12–36 months)
- Fixed vs. variable tariffs
- Renewable or carbon-neutral tariff availability
- Multi-site options for businesses in Stockton, Redcar, Hartlepool or Darlington
- Sector-specific tariffs for manufacturing, logistics, retail or hospitality
Because pricing varies significantly between suppliers, comparing multiple quotes is essential.
Get business energy quotes for Middlesbrough
To compare tailored commercial electricity and gas prices in Middlesbrough, visit EnergyCosts.co.uk. Enter your postcode and annual usage to receive competitive quotes from leading UK suppliers and secure lower-cost energy deals for your business.