Reading is one of the UK’s most dynamic commercial hubs outside London, home to a powerful mix of technology firms, financial services, professional services, life sciences, retail, hospitality, creative industries and fast-growing start-ups. With its strong transport links, proximity to the capital and highly skilled workforce, Reading attracts thousands of SMEs — but it also sits within one of the UK’s highest-priced regions for business energy.
Our detailed guide uses EnergyCosts.co.uk’s 2025 modelling dataset to provide a clear overview of business energy prices in Reading, including estimated unit rates for gas and electricity, modelled annual bills and actionable strategies for SMEs seeking to reduce their electricity and gas costs.
What SMEs typically pay for gas and electricity in Reading
For consistency across the UK’s largest towns and cities, our modelling is based on a standard SME energy consumption profile:
- 25,000 kWh of electricity per year
- 20,000 kWh of gas per year
This reflects common usage patterns across Reading’s offices, co-working spaces, laboratories, retail units, hotels, cafés, creative agencies, healthcare practices and light industrial premises.
Reading’s regional pricing position
Reading is located in the South East — one of the most expensive regions in the UK for commercial energy. As a result, the city receives a +3% regional uplift relative to the national average.
Estimated SME unit rates in Reading:
- Electricity: 27.7p/kWh
- Gas: 7.42p/kWh
Estimated annual and monthly bills for Reading SMEs
Applying these rates to the modelled SME consumption profile gives:
- Electricity: £7,119 per year
- Gas: £1,614 per year
- Combined annual bill: ~£8,733
- Combined monthly cost: ~£728
These figures make Reading one of the UK’s highest-cost cities for business energy, alongside London, Brighton, Southampton, Southend-on-Sea and Luton.
Why business energy prices in Reading are higher
Reading’s elevated business energy costs are influenced by several regional and economic factors.
1. High distribution network charges
The South East typically experiences:
- Heavy grid congestion
- Higher reinforcement and upgrade costs
- Strong electricity demand from both households and businesses
- Increased transmission pressures
These conditions push distribution charges upwards, which are built into commercial tariffs.
2. High concentration of energy-intensive sectors
Reading has substantial computing, data-heavy, laboratory and office-based sectors, which contribute to elevated daytime electricity demand.
3. Supplier operating costs
Property, staffing and logistics costs are significantly higher in the South East than in northern or Scottish regions, and this is reflected in tariff pricing.
4. Limited regional discount mechanisms
Unlike Scotland, Wales and the North East, the South East receives no distribution cost reductions, keeping business energy rates consistently at the upper end of national pricing.
How Reading businesses can reduce energy bills
Even in one of the UK’s highest-cost regions, Reading SMEs can take meaningful steps to reduce their electricity and gas expenditure.
1. Switch suppliers at the end of your contract
Many businesses unknowingly stay on expensive rollover or deemed tariffs. Switching suppliers at renewal can reduce costs by 20–35%, even in high-cost areas.
2. Provide accurate consumption data for competitive quotes
Suppliers give more accurate and lower-priced quotes when provided with:
- Smart meter data
- Accurate annual kWh usage
- Seasonal usage patterns
Businesses with data-heavy operations benefit especially from precise modelling.
3. Reduce electricity consumption
Electricity is the largest part of a Reading SME’s energy bill. Reducing use delivers substantial savings:
- Upgrade to LED lighting
- Install motion sensors in low-use areas
- Optimise HVAC systems
- Shut down equipment outside working hours
- Reduce peak-hour usage of high-load devices
4. Improve gas heating efficiency
Many Reading offices and commercial units can reduce gas consumption through:
- Better insulation
- Draught-proofing
- Boiler upgrades
- Programmable thermostats
- Zoning for multi-room premises
5. Install smart meters
Smart meters provide real-time visibility into energy usage, helping SMEs identify inefficiencies and control bills.
How Reading compares with other major UK cities
Reading sits in the top pricing tier nationwide.
- More expensive than: Manchester, Liverpool, Leeds, Sheffield, Nottingham, Birmingham, Bristol, Stoke-on-Trent
- Similar to: Brighton, Southampton, Luton, Southend-on-Sea
- Cheaper than: Only London consistently exceeds Reading in overall SME energy costs
However, these differences remain smaller than the potential savings available through proactive energy management.
Comparing business energy suppliers in Reading
Every major UK business energy supplier operates in Reading, offering a range of tariffs tailored to SMEs. When comparing deals, businesses should consider:
- Unit rates and standing charges
- 12–36 month fixed contracts
- Variable or flexible plans
- Green or renewable-backed tariffs
- Multi-site contracts for businesses operating across Berkshire
- Sector-specific tariffs for offices, retail, hospitality, healthcare, technology or laboratories
Supplier pricing can vary significantly, making comparison essential.
Get business energy quotes for Reading
To compare live business electricity and gas prices in Reading, visit EnergyCosts.co.uk. Enter your postcode and annual consumption to receive tailored, accurate quotes from leading suppliers — helping your business secure more competitive energy rates.