Nottingham is a major commercial hub in the East Midlands, home to a diverse SME community spanning finance, retail, life sciences, manufacturing, hospitality, digital technology, education and professional services. With major regeneration projects underway, strong transport links and a growing population, Nottingham continues to attract new businesses each year. For local companies, understanding the cost of electricity and gas is essential to managing overheads — especially as business energy prices remain significantly higher than historical norms.
Our detailed location guide uses EnergyCosts.co.uk’s 2025 modelling dataset to provide an in-depth analysis of business energy prices in Nottingham, including typical unit rates, estimated annual bills and practical strategies to reduce costs.
What SMEs typically pay for gas and electricity in Nottingham
To compare cities consistently across the UK, we modelled a standard SME using:
- 25,000 kWh of electricity per year
- 20,000 kWh of gas per year
This usage profile reflects the energy consumption of many Nottingham businesses, including restaurants, cafés, workshops, retail stores, offices, laboratories, salons and small industrial units.
Nottingham’s regional pricing position
The East Midlands has mid-range energy distribution costs, resulting in a +1% regional uplift relative to the UK average. Nottingham therefore sits close to the national midpoint for business energy pricing.
Estimated SME unit rates in Nottingham are:
- Electricity: 27.2p/kWh
- Gas: 7.27p/kWh
Estimated annual and monthly bills for Nottingham SMEs
Applying these rates to the modelled consumption gives:
- Electricity: £6,994 per year
- Gas: £1,584 per year
- Combined annual bill: ~£8,578
- Combined monthly cost: ~£715
This places Nottingham in the moderately priced tier for business energy — cheaper than London, Southampton, Brighton and Bristol, but more expensive than Manchester, Sheffield, Newcastle, Edinburgh, Cardiff and Belfast.
Why business energy prices in Nottingham sit near the UK average
Several structural and regional factors contribute to Nottingham’s mid-range position for commercial energy costs.
1. Balanced distribution network costs
The East Midlands region features:
- Moderate grid maintenance and reinforcement requirements
- Stable regional demand
- Efficient distribution infrastructure relative to national averages
This keeps distribution charges predictable but slightly higher than those in the North.
2. Competitive but not saturated supplier market
Nottingham’s business population supports strong competition among suppliers, but pricing is not as aggressively discounted as in the North East or Scotland.
3. Diverse commercial consumption patterns
Nottingham has a broad mixture of energy-intensive sectors (manufacturing, labs, hospitality) and low-usage sectors (professional services, retail). This diversity creates a stable demand pattern that neither pushes prices significantly down nor up.
4. Supplier operating costs
While Nottingham is far cheaper for suppliers to operate in than London, costs remain slightly higher than those in Manchester or Leeds, influencing tariff structures.
How Nottingham businesses can reduce energy bills
Despite sitting near the national midpoint for SME energy prices, Nottingham businesses can achieve significant savings by taking a proactive approach to procurement and consumption management.
1. Switch energy suppliers at contract renewal
A large proportion of businesses remain on rollover or deemed rates that can cost far more than fixed contracts. Switching at renewal can achieve savings of 20–40%, depending on the market.
2. Use accurate kWh data for quotes
Providing real consumption data (ideally from a smart meter) ensures suppliers offer the lowest possible quotes tailored to the business’s actual usage.
3. Reduce electricity usage where possible
Electricity typically accounts for the bulk of SME energy spending. Nottingham businesses can reduce costs by:
- Upgrading office and retail lighting to LED
- Installing occupancy sensors in low-traffic rooms
- Using timers or automated controls for heating and cooling
- Switching off equipment and signage outside operating hours
- Optimising refrigeration and cooking equipment in hospitality settings
These measures often yield strong, rapid savings.
4. Improve heating and insulation
Older buildings in Nottingham — particularly terraced units, heritage buildings and industrial spaces — often suffer from poor heat retention. Reducing gas consumption can be achieved through:
- Draught-proofing
- Insulating walls and floors
- Upgrading older boilers
- Introducing zoning systems
- Using programmable thermostats
5. Install smart meters for greater control
Smart meters give SMEs real-time insights into their usage, helping them track energy waste and understand daily consumption patterns.
How Nottingham compares with other major UK cities
Nottingham’s energy costs fall in the middle tier nationwide.
- More expensive than: Manchester, Liverpool, Leeds, Sheffield, Newcastle, Glasgow, Edinburgh, Cardiff, Belfast
- Similar to: Birmingham, Coventry, Leicester, Stoke-on-Trent
- Cheaper than: London, Southampton, Brighton, Reading, Bristol, Southend, Luton
Despite these differences, location affects bills far less than contract choice and actual consumption.
Comparing business energy suppliers in Nottingham
Every major UK business energy supplier operates in Nottingham, offering a wide array of options including fixed-rate deals, flexible tariffs, renewable-backed contracts and multi-site arrangements. Nottingham SMEs can benefit from comparing:
- Unit rate competitiveness
- Standing charges (often a major portion of costs)
- Contract length flexibility
- Renewable energy offerings
- Prices tailored to industry type or usage patterns
Quotes can vary significantly between providers, making comparison essential.
Get business energy quotes for Nottingham
To compare live business energy prices in Nottingham and receive tailored quotes for your business, use EnergyCosts.co.uk. Enter your postcode and annual usage to access competitive deals from top UK suppliers — helping you reduce energy bills and improve financial stability.