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How much does energy cost per month for a bakery business?

Last updated on 2 December 2025

Running a bakery involves energy-heavy equipment such as electric and gas ovens, refrigeration, chillers, mixers, proving cabinets, dishwashers, hot water systems, and lighting. Most bakeries operate long hours, often starting before dawn, which increases consumption. Understanding monthly energy costs helps bakery owners forecast overheads, choose suitable tariffs, and improve profitability through efficient usage and better supplier selection.

Typical energy usage in bakeries

Energy demand depends on the number of ovens, product volume, refrigeration needs, premises size and whether the bakery includes dine-in space. Gas use is highest in premises using deck or rack ovens, while electricity is heavily used for refrigeration, proving and lighting.

Typical bakery energy consumption ranges

Bakery typeElectricity (kWh/month)Gas (kWh/month)
Small (artisan or home-style, 1–2 ovens)2,500–5,0003,000–6,000
Medium (high street, mixed ovens, café area)5,500–8,5007,000–12,000
Large (commercial bakery or production facility)9,000–16,000+12,000–22,000+

Small bakeries focus on countertop ovens and fridge/freezers, while larger operations may run multiple deck ovens, proofer-retarder systems, blast chillers, commercial wash stations, and climate-controlled storage.

Monthly energy cost estimates for a bakery

Bakery sizeElectricity costGas costTotal monthly energy cost
Small£715–£1,430£351–£702£1,066–£2,132
Medium£1,430–£2,210£630–£1,089£2,060–£3,299
Large£2,340–£4,160+£1,134–£1,980+£3,474–£6,140+

Costs include both unit consumption and standing charges. Commercial bakeries running batch production lines, conveyors and packaging machinery may exceed £7,000 per month in total energy costs.

Which bakery activities use the most energy?

Equipment or activityElectricity (kWh/month)Gas (kWh/month)
Deck or rack ovens300–1,8002,500–10,000
Refrigeration and chillers400–2,000N/A
Proving cabinets and retarder systems200–1,100100–400
Mixers, dough machines and slicers60–300N/A
Washing, sanitising and dishwashers200–800200–500
Lighting and ventilation300–1,200N/A
Hot water and heating300–1,0001,000–3,500

Ovens are the single biggest energy users, particularly gas-fired deck ovens that must maintain high temperatures for long periods.

Main cost drivers

Operating hours

Most bakeries start at 4am or earlier and may operate 12–14 hours daily, particularly those with café seating or retail areas.

Refrigeration demand

High refrigeration use for dough resting, chilled storage, cream products, chocolate, meat fillings and decorated cakes increases electricity consumption.

Seasonal variation

Winter increases gas use for oven pre-heating and hot water systems, while summer raises refrigeration load.

Energy waste

Heat loss from old ovens, poorly sealed fridge doors, or over-sized ventilation systems can add 10–20% to bills.

How to reduce bakery energy costs

StrategySaving potentialNotes
Install insulated doors and seals on ovens15–25%Keeps heat contained, reduces re-heating time
Use smart timers and scheduling for ovens and ventilation10–18%Avoids unnecessary off-hour consumption
Switch to LED and sensor lighting6–10%Particularly effective in retail and prep areas
Service ovens and refrigeration equipment regularly10–15%Faulty thermostats and seals waste energy
Upgrade to A-rated mixers, chillers and freezers20–30%Efficient motors and insulation save electricity
Use heat recovery from ovensUp to 15%Reuses wasted heat to warm prep areas

Why energy management matters in bakeries

Energy typically accounts for 8% to 15% of operational spend in small bakery shops, and up to 22% in larger commercial production facilities. Ovens, proving chambers and refrigeration are essential to product quality but also drive high energy bills. With rising unit costs, choosing efficient equipment, controlling operating hours, and switching to a competitive tariff can directly impact profit margins.

Tariff options for bakery businesses

Bakeries can benefit from fixed-rate tariffs and time-of-use contracts, particularly if most baking occurs early morning or overnight. Some suppliers also offer heat-intensive business tariff packages tailored to food production environments.

Use EnergyCosts.co.uk to save money on bakery energy bills

Whether you run a high street bakery, cake design studio, or industrial baking facility, knowing your consumption and choosing the right energy supplier can help reduce your monthly bill. Use EnergyCosts.co.uk to compare business energy tariffs specifically suited to energy-intensive food businesses.

FAQ

How much does energy cost for a bakery business per month?

A medium-sized bakery using mixed ovens, fridges, chillers and wet kitchen equipment usually spends between £2,060 and £3,299 per month on combined electricity and gas. Costs vary based on production volumes, opening hours and energy tariff type.

How much electricity does a bakery use each month?

A small bakery with one or two ovens typically consumes between 2,500 and 5,000 kWh of electricity monthly. This includes refrigeration, lighting, proving cabinets, mixers and dishwashers. At an average rate of 26p per kWh, this results in a cost of around £650 to £1,350 plus standing charges.

Are gas ovens cheaper to run than electric ovens in bakeries?

Yes. Gas ovens usually cost less to run due to lower gas unit rates, averaging 9p per kWh compared to 26p for electricity. However, gas ovens may consume more overall kWh and need regular maintenance, so total operating costs still need to be closely monitored.

Which bakery equipment uses the most energy?

Deck and rack ovens use the most energy, often consuming between 2,500 and 10,000 kWh of gas or up to 1,800 kWh of electricity monthly. Refrigeration, chillers, proving cabinets and dishwashers are also major contributors to overall usage.

Do bakeries spend more on electricity or gas?

Most bakeries spend more on gas due to oven heating and hot water usage. However, artisan bakeries with electric ovens and large refrigeration systems may have electricity costs that exceed their gas usage, particularly in warmer months.

Can bakery energy bills be reduced without replacing ovens?

Yes. Simple changes such as insulating oven doors, repairing seals, installing smart timers, cleaning extractor filters, using LED lighting and improving ventilation control can reduce energy bills by 10% to 18% without replacing equipment.

How much does refrigeration contribute to bakery energy usage?

Refrigeration typically accounts for 15% to 25% of total electricity usage in a bakery. This includes chillers, freezers, dough retarders and display fridges. High ambient temperatures and poor insulation can significantly increase this proportion.

Do bakeries benefit from switching to fixed-rate business energy tariffs?

Yes. Fixed-rate tariffs protect bakery owners from rising energy prices and improve cost predictability. High-consumption businesses like bakeries often save 8% to 15% annually by switching to fixed or time-of-use tariffs that match production schedules.

Are energy costs higher for bakeries with café seating areas?

Yes. Bakeries with café spaces use additional energy for air conditioning, heating, lighting, dishwashing, freezer display cabinets and hot drink equipment. This can increase monthly energy usage by 20% to 35% compared to bakery-only premises.

How much of a bakery’s operating costs are typically energy-related?

Energy usually represents 8% to 15% of operating costs for high street bakeries and up to 22% for larger production facilities. Footfall, equipment age, baking volume and tariff selection all influence this proportion.

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