Preston is one of Lancashire’s most economically active cities, home to a varied SME community across logistics, light manufacturing, hospitality, retail, digital services, healthcare, education and professional services. With strong transport links, a growing university population and ongoing regeneration across the city centre and surrounding districts, Preston continues to attract new businesses. A significant advantage for local SMEs is that Preston benefits from competitive business energy prices, thanks to favourable regional network costs in the North West.
Our detailed guide uses EnergyCosts.co.uk’s 2025 modelling dataset to provide a clear overview of business energy prices in Preston, including estimated gas and electricity unit rates, projected annual bills and practical advice on reducing energy expenditure.
What SMEs typically pay for gas and electricity in Preston
To ensure consistency across all major UK towns and cities in our study, we use the same SME consumption profile:
- 25,000 kWh of electricity per year
- 20,000 kWh of gas per year
These usage levels reflect typical consumption patterns across Preston’s offices, workshops, small factories, cafés, bars, retail units, creative studios and co-working spaces.
Preston’s regional pricing position
Preston sits within the North West energy distribution region, which benefits from efficient infrastructure and competitive supplier operating costs. As a result, Preston receives a –1% regional discount relative to the national average.
Estimated SME unit rates in Preston:
- Electricity: 26.6p/kWh
- Gas: 7.13p/kWh
Estimated annual and monthly bills for Preston SMEs
Applying these rates to our modelled consumption yields:
- Electricity: £6,844 per year
- Gas: £1,556 per year
- Combined annual bill: ~£8,400
- Combined monthly cost: ~£700
Preston therefore ranks among the most affordable English cities for business energy, similar to Liverpool, Manchester and Sheffield, and far cheaper than southern cities such as Brighton, Reading and London.
Why business energy prices in Preston are competitive
Several regional, infrastructural and market factors contribute to Preston’s favourable energy cost position.
1. Efficient North West electricity distribution network
The North West benefits from:
- Stable grid infrastructure
- Moderate reinforcement requirements
- Predictable network maintenance
- Lower congestion than the South East or London
These conditions contribute to lower electricity distribution charges, which directly influence business tariffs.
2. Competitive supplier environment
With a strong SME base and a wide variety of business sectors, Preston attracts active competition from UK energy suppliers. This competition leads to:
- Strongly priced fixed-term tariffs
- Competitive standing charges
- Attractive renewal deals for growing SMEs
3. Lower supplier operating costs
Compared with southern locations, suppliers incur lower property, staffing and logistics costs in Preston, helping keep tariffs more affordable.
4. Balanced commercial consumption patterns
Preston’s blend of service-sector, hospitality, creative and light manufacturing activity leads to a balanced, predictable demand profile that supports price stability.
How Preston businesses can reduce energy bills
Even though Preston benefits from lower-than-average regional pricing, SMEs can still significantly reduce costs through proactive management.
1. Switch suppliers at the end of your contract
Many small and medium-sized businesses unknowingly remain on expensive rollover or deemed tariffs. Switching can save 20–40% depending on market conditions.
2. Provide accurate usage data for quotations
Smart meter data or recent readings enable suppliers to offer lower, more accurate quotes. Estimated usage often results in higher-than-necessary pricing.
3. Reduce electricity usage
Electricity remains the largest component of most SME energy bills. Preston businesses can cut consumption by:
- Installing LED lighting
- Using sensors and timers to manage low-use spaces
- Ensuring HVAC equipment is serviced and efficient
- Turning off equipment outside trading hours
- Reducing peak daytime energy loads where possible
4. Improve gas heating efficiency
Preston’s older industrial and retail premises often benefit from improvements such as:
- Programmable thermostats
- Boiler upgrades
- Draught-proofing and insulation
- Heating zones for multi-room premises
- Reducing overnight and weekend heating levels
5. Install smart meters
Smart meters provide real-time usage insights that help SMEs identify inefficiencies and forecast costs more accurately.
How Preston compares with other major UK cities
Preston ranks as one of the more affordable cities for business energy costs.
- Cheaper than: London, Reading, Brighton, Southampton, Bristol, Nottingham, Birmingham
- Similar to: Manchester, Liverpool, Leeds, Sheffield, Kingston upon Hull
- Slightly more expensive than: Edinburgh, Glasgow, Cardiff, Belfast, Newcastle
The differences are modest, reinforcing that contract choice and consumption have more impact than location.
Comparing business energy suppliers in Preston
Every major UK business energy supplier operates across Preston and Lancashire. When comparing tariffs, SMEs should consider:
- Unit rates and standing charges
- Contract lengths (12–36 months)
- Fixed vs. flexible pricing
- Renewable or carbon-neutral tariff options
- Multi-site supply contracts for businesses operating in Blackpool, Blackburn, Lancaster or Chorley
- Sector-specific pricing for hospitality, retail, manufacturing or logistics
Since supplier pricing varies substantially, comparing multiple quotes is essential.
Get business energy quotes for Preston
To compare live business electricity and gas prices in Preston, visit EnergyCosts.co.uk. Enter your postcode and annual usage to receive tailored quotes from leading UK suppliers — helping your business secure competitive rates and reduce long-term operating costs.