How much energy does a warehouse use? UK costs and benchmarks

Warehouses generally consume less energy per square metre than shops, offices and hospitality buildings. However, their large floor areas, long operating hours, high-bay lighting, space heating, forklifts, conveyors, automation and refrigeration can still produce substantial annual energy bills.

Official government data indicates that a typical warehouse in England and Wales uses approximately:

• 26.59 kWh of electricity per square metre each year
• 54.74 kWh of gas per square metre each year.

Using average UK non-domestic prices from the first quarter of 2026, this is equivalent to an indicative energy cost of approximately £9.25 per square metre annually, excluding VAT.

That would put the benchmark annual energy cost of a 5,000m² ambient warehouse at approximately £46,244. Refrigerated, automated and continuously operating warehouses can consume considerably more.

This guide explains typical warehouse energy consumption, how to calculate warehouse electricity and gas costs, where the energy is used and how warehouse operators can reduce their bills.

Warehouse energy costs at a glance

Warehouse energy measure	Indicative benchmark
Median warehouse electricity consumption	26.59 kWh per m² annually
Median warehouse gas consumption	54.74 kWh per m² annually
Illustrative electricity price	24.14p per kWh
Illustrative gas price	5.17p per kWh
Electricity cost per m²	£6.42 annually
Gas cost per m²	£2.83 annually
Combined energy cost per m²	£9.25 annually
Estimated cost for a 1,000m² warehouse	£9,249 annually
Estimated cost for a 5,000m² warehouse	£46,244 annually
Estimated cost for a 10,000m² warehouse	£92,489 annually

The consumption benchmarks come from the government’s Non-Domestic National Energy Efficiency Data-Framework, known as ND-NEED. They represent median 2022 consumption in warehouses in England and Wales.

The price calculations use the average non-domestic prices reported in the government’s June 2026 Quarterly Energy Prices. These were 24.14p per kWh for electricity and 5.17p per kWh for gas in the first quarter of 2026, including the Climate Change Levy but excluding VAT.

These figures are benchmarks rather than supplier quotations. The amount an individual warehouse pays will depend on its contract, consumption band, meter, region, load profile, maximum import capacity, standing charges and other site-specific costs.

How much electricity does a warehouse use?

The latest government benchmark puts median warehouse electricity consumption at 26.59 kWh per square metre annually.

Electricity consumption can be estimated using the following formula:

Annual warehouse electricity consumption = floor area × electricity intensity

For example, a 2,500m² warehouse operating at the government median would use:

2,500m² × 26.59 kWh per m² = 66,475 kWh annually

At an illustrative electricity price of 24.14p per kWh, this would cost:

66,475 kWh × £0.2414 = £16,047 annually

This calculation excludes VAT and does not separately identify any site-specific metering, capacity or reactive-power charges.

Warehouse electricity is commonly used for:

• internal and external lighting;
• conveyors and automated handling systems;
• forklift and pallet-truck charging;
• refrigeration and temperature control;
• ventilation fans and pumps;
• security systems and CCTV;
• warehouse management systems;
• computers, servers and telecommunications;
• offices and staff facilities;
• electric heating and hot water;
• electric vehicle charging; and
• battery storage equipment.

An ambient warehouse used mainly for storage may consume relatively little electricity per square metre. A 24-hour fulfilment centre with automated sorting, conveyors, robotics and intensive forklift charging may use substantially more.

How much gas does a warehouse use?

The government’s median warehouse gas-consumption benchmark is 54.74 kWh per square metre annually.

Gas consumption can be estimated using:

Annual warehouse gas consumption = floor area × gas intensity

For a 2,500m² warehouse:

2,500m² × 54.74 kWh per m² = 136,850 kWh annually

At an illustrative price of 5.17p per kWh:

136,850 kWh × £0.0517 = £7,075 annually

Gas is primarily used for:

• warm-air space heating;
• radiant heating;
• office and welfare-area heating;
• hot water;
• frost protection; and
• some industrial or product-related processes.

Not every warehouse has a gas connection. Modern warehouses may use heat pumps, direct electric heaters or local radiant heating instead. Unheated ambient warehouses may have little or no gas consumption outside their offices and welfare areas.

The Health and Safety Executive says indoor workplaces should normally maintain at least 16°C, or 13°C where the work involves considerable physical effort. Employers must assess what constitutes a reasonable temperature for the work being performed rather than simply heating an entire warehouse unnecessarily. Current guidance is available from the Health and Safety Executive.

Warehouse energy consumption per square metre

The following table compares two recognised warehouse benchmarks.

Source	Electricity	Gas	Scope
Government ND-NEED 2024 report	26.59 kWh/m²	54.74 kWh/m²	Median 2022 consumption in England and Wales
Carbon Trust warehouse guide	33 kWh/m²	47 kWh/m²	Typical consumption for 500–1,000m² warehouses
Practical ambient range	Approximately 27–33 kWh/m²	Approximately 47–55 kWh/m²	Indicative starting point for benchmarking

The older Carbon Trust warehousing and logistics guide uses typical annual consumption of 33 kWh of electricity and 47 kWh of gas per square metre.

The difference between these sources is not necessarily a contradiction. They cover different periods, building samples and methodologies. Warehouse energy intensity also varies according to building size, operating hours, heating requirements and the type of goods stored.

The government’s time series suggests warehouse energy intensity has fallen. Between 2012 and 2022:

Energy type	2012 benchmark	2022 benchmark	Approximate reduction
Electricity	35.95 kWh/m²	26.59 kWh/m²	26%
Gas	76.17 kWh/m²	54.74 kWh/m²	28%

Possible reasons include better lighting, improved controls, newer buildings, more efficient heating systems and changes in operating practices.

Average warehouse energy bills by size

The following calculations use the government median consumption figures of 26.59 kWh/m² for electricity and 54.74 kWh/m² for gas.

They apply the Q1 2026 average non-domestic prices of 24.14p per kWh for electricity and 5.17p per kWh for gas.

Warehouse size	Electricity use	Gas use	Electricity cost	Gas cost	Total annual cost	Monthly average
500m²	13,295 kWh	27,370 kWh	£3,209	£1,415	£4,624	£385
1,000m²	26,590 kWh	54,740 kWh	£6,419	£2,830	£9,249	£771
2,500m²	66,475 kWh	136,850 kWh	£16,047	£7,075	£23,122	£1,927
5,000m²	132,950 kWh	273,700 kWh	£32,094	£14,150	£46,244	£3,854
10,000m²	265,900 kWh	547,400 kWh	£64,188	£28,301	£92,489	£7,707
15,000m²	398,850 kWh	821,100 kWh	£96,282	£42,451	£138,733	£11,561

These figures exclude VAT. They should not be interpreted as live business energy quotes.

A larger warehouse may secure a lower unit rate than a smaller business because it purchases more energy. Conversely, a warehouse with poor power factor, a high maximum demand, insufficient capacity or an unsuitable pass-through contract could incur additional charges not reflected in this simplified calculation.

Worked warehouse energy-cost example

Consider a 2,500m² ambient warehouse operating five or six days per week.

Estimated electricity consumption

2,500m² × 26.59 kWh/m² = 66,475 kWh

66,475 kWh × 24.14p = £16,047

Estimated gas consumption

2,500m² × 54.74 kWh/m² = 136,850 kWh

136,850 kWh × 5.17p = £7,075

Estimated combined cost

£16,047 + £7,075 = £23,122 annually

This is approximately:

• £1,927 per month;
• £444 per week; or
• £9.25 per square metre annually.

If 20% VAT applied to the full amount, the gross cost would be approximately £27,746. A VAT-registered business can generally reclaim eligible VAT, but it cannot reclaim the Climate Change Levy.

Energy VAT and eligibility for reduced rates are covered separately in the EnergyCosts.co.uk guide to VAT on business energy.

Why warehouse energy costs vary

Two warehouses with the same floor area can have completely different energy bills. The most important variables include the following.

Warehouse use

An ambient storage warehouse may require little more than lighting, security, office equipment and occasional heating. A fulfilment centre may operate conveyors, sortation systems, automated packing equipment and hundreds of charging points.

Operating hours

A warehouse operating eight hours a day, five days per week will usually consume less than a 24-hour distribution centre. Longer operating hours increase lighting, heating, ventilation, equipment and office consumption.

Building height

Energy consumption is normally benchmarked against floor area, but heating and cooling requirements are affected by the building’s volume.

A high-bay warehouse may have the same floor area as a low building while containing considerably more air to heat. Warm air can also collect near the roof rather than remaining at working level.

Product temperature requirements

Ambient products require less energy than chilled, frozen, pharmaceutical or humidity-controlled stock. Each unnecessary degree of cooling or heating adds to consumption.

Door openings

Loading-bay and pedestrian doors allow heated or refrigerated air to escape. Busy distribution centres may open loading doors hundreds of times each day.

Poorly sealed doors, damaged dock seals and doors left open between vehicle movements can substantially increase heating or refrigeration demand.

Building fabric

Roof insulation, wall insulation, floor construction, air leakage, rooflights and door condition all affect energy consumption.

Older warehouses with damaged cladding, unsealed joints or poorly insulated roofs will generally need more heating than modern logistics buildings.

Lighting technology

Older warehouses may still use fluorescent, sodium or metal-halide lighting. These systems consume more electricity and can be difficult to control by aisle or occupancy.

LED lighting with presence detection and daylight controls can substantially reduce consumption.

Automation

Automation may reduce the floor area and lighting required for a given volume of stock, but it adds electrical loads such as:

• conveyors;
• robotic picking systems;
• automated storage and retrieval systems;
• sortation equipment;
• motors and drives;
• control systems; and
• servers and communications equipment.

The overall effect depends on whether the increased equipment consumption is outweighed by improvements in space and operational efficiency.

Forklift charging

Electric forklift trucks can create large, concentrated loads. Charging several vehicles simultaneously may increase maximum demand and require additional electrical capacity.

Smart charging can stagger these loads, avoid expensive periods and reduce the risk of exceeding the site’s agreed capacity.

Energy contract

The final bill depends on more than the amount of energy used. Contract type, renewal timing, credit rating, meter arrangement, region, consumption profile and maximum demand can all affect the price offered by suppliers.

Ambient, automated and refrigerated warehouses compared

Warehouse type	Main energy uses	Relative consumption
Ambient storage	Lighting, security and occasional heating	Low
Heated distribution warehouse	Lighting, space heating, forklifts and loading bays	Low to moderate
E-commerce fulfilment centre	Long hours, lighting, conveyors, IT and packing	Moderate to high
Automated high-bay warehouse	Motors, robotics, conveyors and control systems	Moderate to high
Chilled warehouse	Refrigeration, fans, pumps and defrosting	High
Frozen warehouse	Continuous low-temperature refrigeration	Very high
Pharmaceutical warehouse	Precise temperature, ventilation and humidity control	High
Mixed warehouse and office	Warehouse loads plus office HVAC and computing	Depends on office proportion

The standard warehouse benchmark is most useful for ambient and conventionally heated premises. It should not be used to predict the energy consumption of a refrigerated warehouse without adjustment.

How much energy does a cold-storage warehouse use?

Cold-storage warehouse performance is usually measured in kilowatt-hours per cubic metre rather than per square metre.

The relevant calculation is:

Specific energy consumption = annual electricity use ÷ cold-storage volume

This is normally expressed as kWh/m³ per year.

The Cold Chain Innovation Hub reports that refrigeration typically accounts for 60% to 70% of a cold-storage facility’s electricity consumption.

It gives the following best-practice reference points for modern cold stores:

Cold-store volume	Best-practice electricity benchmark
50,000m³	Approximately 16 kWh/m³ annually
500,000m³	Less than 5 kWh/m³ annually

Larger cold stores can achieve lower consumption per cubic metre because their external surface area is smaller in relation to their total storage volume.

Cold-store cost example

A 50,000m³ cold store operating at 16 kWh/m³ would consume:

50,000m³ × 16 kWh/m³ = 800,000 kWh annually

At 24.14p per kWh, the indicative electricity cost would be:

800,000 kWh × £0.2414 = £193,120 annually

This is before VAT and any site-specific capacity, metering or ancillary charges.

The Cold Chain Federation recommends comparing cold stores with facilities of a similar size and temperature category. Chilled, frozen and mixed-use warehouses should not be placed in a single benchmark group.

Where warehouses use the most energy

Lighting

The Carbon Trust reports that lighting can account for between 65% and 95% of energy use in ambient warehousing.

The precise proportion will depend on whether the warehouse is heated, its operating hours, the age of its lighting and whether material-handling equipment is included.

Lighting consumption is particularly high where:

• high-output fittings are used throughout the building;
• entire aisles remain illuminated when unoccupied;
• lights operate continuously;
• daylight from rooflights is not used;
• old sodium or metal-halide fittings remain installed; or
• external lighting is poorly controlled.

Heating

Heating can be the largest gas load in a conventional warehouse. Common systems include:

• direct gas-fired warm-air heaters;
• radiant tube heaters;
• boilers and fan-coil units;
• low-temperature hot-water systems;
• local electric heaters; and
• heat pumps.

Warm-air systems can waste energy through open doors and stratification. Radiant heating may be more appropriate where only occupied workstations need to be heated.

Refrigeration

In chilled and frozen warehouses, refrigeration is usually the dominant load. Consumption is affected by:

• storage temperature;
• ambient temperature;
• door openings;
• insulation;
• refrigerant condition;
• compressor efficiency;
• condenser cleanliness;
• evaporator performance;
• defrost controls; and
• product temperature when it enters the building.

Forklifts and handling equipment

The Carbon Trust estimates that forklifts can represent 7% to 10% of a warehousing or logistics company’s non-road energy costs.

Electric forklifts can be cheaper to run and produce no exhaust emissions inside the warehouse. Their charging must nevertheless be managed to avoid creating unnecessary demand peaks.

Offices and staff facilities

Offices, kitchens, toilets, changing areas and rest rooms usually represent a small proportion of the warehouse floor area but can have higher energy intensity.

These areas may require heating, cooling, hot water, lighting, computers and ventilation throughout working hours.

What appears on a warehouse energy bill?

A large warehouse electricity bill may contain considerably more than a unit rate and standing charge.

Charge	What it covers
Electricity unit rate	Electricity consumed, measured in kWh
Gas unit rate	Gas consumed, measured in kWh
Standing charge	Fixed daily supplier and connection costs
Climate Change Levy	Environmental tax on most business energy
VAT	Usually charged at 20%, subject to exceptions
DUoS	Use of the local electricity distribution network
TNUoS	Use of the national transmission network
Capacity charge	Reserved electrical capacity in kVA
Excess-capacity charge	Demand exceeding agreed capacity
Reactive-power charge	Inefficient electrical power usage
Meter operator charge	Operation and maintenance of the meter
Data-collection charge	Collection of half-hourly meter data
Broker commission	May be included in the tariff or charged separately

Network and policy costs are explained in the EnergyCosts guide to non-commodity charges.

Warehouse operators with itemised network charges should also review the guide to DUoS charges.

Climate Change Levy on warehouse energy

From 1 April 2026, the main Climate Change Levy rate is 0.801p per kWh for both electricity and gas.

The government has already published a rate of 0.827p per kWh from 1 April 2027. Current rates are listed in the HMRC Climate Change Levy tables.

A warehouse consuming 250,000 kWh of electricity and 500,000 kWh of gas would incur the following CCL before any relief:

Energy	Consumption	CCL rate	Annual CCL
Electricity	250,000 kWh	0.801p/kWh	£2,002.50
Gas	500,000 kWh	0.801p/kWh	£4,005.00
Total	750,000 kWh	—	£6,007.50

Some businesses participating in a qualifying Climate Change Agreement can receive substantial CCL discounts. Ordinary renewable electricity contracts do not automatically make consumption exempt from CCL.

Half-hourly meters in warehouses

Larger warehouses commonly have half-hourly electricity meters. These record consumption every 30 minutes and provide a detailed view of:

• overnight baseload;
• shift start-up demand;
• forklift charging;
• heating and refrigeration cycles;
• loading-bay activity;
• weekend consumption;
• maximum demand; and
• peak-period usage.

Half-hourly data can reveal equipment operating unnecessarily when a warehouse is closed. It also helps suppliers understand the site’s load profile when preparing a quotation.

More information is available in the EnergyCosts guide to half-hourly energy meters.

How to benchmark warehouse energy consumption

A useful warehouse benchmark should account for more than total annual consumption.

Calculate electricity intensity

Annual electricity consumption ÷ floor area

For example:

200,000 kWh ÷ 5,000m² = 40 kWh/m² annually

This is above the government median of 26.59 kWh/m², although it may be reasonable for a warehouse operating continuously or using substantial automation.

Calculate gas intensity

Annual gas consumption ÷ floor area

For example:

250,000 kWh ÷ 5,000m² = 50 kWh/m² annually

This is slightly below the government warehouse median of 54.74 kWh/m².

Calculate cold-store intensity

Annual electricity consumption ÷ refrigerated volume

For example:

1,200,000 kWh ÷ 50,000m³ = 24 kWh/m³ annually

This should be compared with similar chilled or frozen stores rather than an ambient warehouse benchmark.

Track consumption against activity

Floor area is not always the best operational measure. Warehouse managers may also track:

• kWh per pallet handled;
• kWh per order dispatched;
• kWh per tonne stored;
• kWh per cubic metre;
• kWh per operating hour;
• kWh per shift; or
• kWh per item picked.

A warehouse can appear more energy efficient per square metre while using more electricity for every order processed. Operational and building benchmarks should therefore be considered together.

How to reduce warehouse energy costs

The best measures depend on where the warehouse currently uses energy. A site should examine its half-hourly data and conduct a physical survey before committing to major investment.

Typical warehouse energy-saving opportunities

Improvement	Potential saving within that energy use
Occupancy and daylight lighting controls	20% to 80% of lighting energy
Replacing older lighting with controlled LEDs	50% to 90% of lighting energy
Improved heating times and temperatures	10% to 30% of heating energy
Replacing inefficient heating equipment	30% to 50% of heating energy
Installing destratification fans	Approximately 25% of heating energy
Improving hot-water controls	20% to 50% of hot-water costs

These ranges come from the Carbon Trust’s warehousing checklist. They apply to the relevant end use, not the warehouse’s entire energy bill. A warehouse that already has efficient LEDs and well-configured controls will have less remaining saving potential.

Upgrade warehouse lighting

A lighting project should consider:

• LED high-bay fittings;
• occupancy detection by aisle or zone;
• daylight sensors;
• dimming;
• separate switching for loading bays;
• photocells for external lighting;
• cleaning or replacing rooflights; and
• switching off seasonal or overflow areas.

Presence detection is particularly valuable in aisles that are only occupied for short periods.

Improve heating controls

Warehouse heating should match occupancy and product requirements.

Potential measures include:

• reviewing heating schedules;
• reducing unnecessary pre-heating;
• lowering temperature settings where appropriate;
• zoning offices and warehouse areas separately;
• using local radiant heating at workstations;
• servicing burners and boilers;
• insulating pipes;
• fitting door interlocks;
• using frost-protection settings when the warehouse is unoccupied; and
• ensuring heaters do not operate while loading doors remain open.

Workplace temperatures must remain reasonable and safe. Energy savings should not be achieved by exposing employees to unacceptable conditions.

Install destratification fans

Warm air naturally rises and can collect near the roof of a high-bay warehouse. This leaves the occupied area cooler while valuable heat remains trapped overhead.

Destratification fans move warm air back towards working level. This can reduce the amount of heat required from the main system.

Reduce loading-bay losses

Useful measures include:

• fast-closing doors;
• automatic closing controls;
• dock seals;
• insulated loading doors;
• strip curtains or air curtains;
• door alarms;
• better scheduling of vehicle movements; and
• repairing damaged seals.

These measures are especially important in chilled and frozen warehouses.

Manage forklift charging

Forklift charging should be scheduled around operational and tariff requirements.

Possible improvements include:

1. charging during lower-priced periods;
2. staggering charger start times;
3. preventing every vehicle charging simultaneously;
4. monitoring charger efficiency;
5. avoiding unnecessary battery overcharging;
6. integrating solar generation;
7. using smart charging controls; and
8. checking whether maximum import capacity remains suitable.

A warehouse adding electric HGVs, vans or large forklift fleets should check its network capacity before installing charging infrastructure. The EnergyCosts.co.uk guide to Distribution Network Operators explains how the local network affects new connections and capacity upgrades.

Optimise refrigeration

Cold-storage operators should consider:

• avoiding unnecessarily low temperature settings;
• cleaning condensers and evaporators;
• repairing refrigerant leaks;
• checking compressor performance;
• optimising suction and condensing pressures;
• controlling defrost cycles;
• preventing ice build-up;
• improving door management;
• installing variable-speed drives;
• recovering waste heat; and
• submetering each refrigeration system.

Small control changes can generate large absolute savings because refrigeration operates continuously.

Reduce overnight baseload

A warehouse’s half-hourly profile should fall substantially when operations stop.

A high overnight baseload may indicate:

• conveyors left energised;
• unnecessary lighting;
• battery chargers operating continuously;
• heating or ventilation running out of hours;
• compressors cycling;
• office equipment left on;
• refrigerated areas operating inefficiently; or
• faulty controls.

Managers should compare overnight demand with the known essential loads and investigate the difference.

Worked warehouse energy-saving example

Consider the 5,000m² benchmark warehouse from the earlier table.

Its indicative annual costs are:

• electricity: £32,094;
• gas: £14,150; and
• total energy: £46,244.

Assume that lighting represents a conservative 65% of its electricity cost:

£32,094 × 65% = £20,861

If LEDs and improved controls reduce lighting consumption by 40%, the annual saving would be:

£20,861 × 40% = £8,344

If improved heating controls also reduce gas consumption by 20%, the additional saving would be:

£14,150 × 20% = £2,830

The combined illustrative saving would therefore be:

£8,344 + £2,830 = £11,174 annually

That represents approximately 24% of the original benchmark energy cost.

Actual savings must be established using the warehouse’s existing equipment, operating hours and meter data.

Solar panels for warehouse roofs

Warehouses can be well suited to commercial solar panels because they often have large, unobstructed roofs and substantial daytime electricity demand.

On-site solar may help power:

• lighting;
• conveyors;
• automation;
• refrigeration;
• forklift charging;
• vehicle charging;
• offices; and
• battery storage.

Before proceeding, the business should check:

• roof age and condition;
• structural loading capacity;
• asbestos;
• roof ownership;
• landlord and lender consent;
• available grid capacity;
• planning restrictions;
• DNO connection requirements;
• expected self-consumption;
• maintenance access; and
• the proposed export arrangement.

Electricity used directly within the warehouse is normally worth more than exported electricity because self-consumption avoids buying that electricity at the full import price.

Surplus generation may qualify for export payments under the Smart Export Guarantee, depending on the installation and export contract.

Warehouse battery storage

Battery storage can be used to:

• increase consumption of on-site solar;
• reduce peak grid imports;
• manage maximum demand;
• support electric vehicle charging;
• shift consumption into cheaper periods;
• provide limited resilience; and
• participate in flexibility arrangements.

The financial case depends on the difference between charging and discharging prices, battery degradation, round-trip efficiency, site demand and any avoided capacity or peak charges.

A battery should not be sized solely from annual electricity consumption. The warehouse’s half-hourly load profile and solar-generation profile are much more important.

Choosing a warehouse energy contract

A warehouse may be offered:

• a fully fixed contract;
• a fixed commodity contract with pass-through charges;
• a flexible purchasing contract;
• an index-linked contract;
• a time-of-use tariff; or
• a renewable electricity tariff.

A fully fixed contract provides greater budget certainty, but the supplier may include a risk premium. A pass-through contract exposes the customer more directly to changes in network and policy costs.

Before comparing warehouse energy contracts, collect:

1. electricity MPAN;
2. gas MPRN;
3. contract end dates;
4. current unit and standing charges;
5. 12 months of electricity and gas consumption;
6. half-hourly electricity data;
7. maximum demand;
8. maximum import capacity;
9. meter type;
10. site operating hours;
11. planned solar or battery installations;
12. planned vehicle charging; and
13. expected changes in warehouse activity.

Warehouses should avoid falling onto deemed or out-of-contract rates after moving premises or allowing a fixed contract to expire.

Warehouse energy-audit checklist

Check	What to examine
Annual consumption	At least 12 months of electricity and gas bills
Energy intensity	Electricity and gas use per square metre
Half-hourly profile	Baseload, peaks and out-of-hours consumption
Maximum demand	Highest recorded kW or kVA
Import capacity	Whether reserved capacity is too high or too low
Lighting	Fitting type, controls, zoning and operating hours
Heating	Set points, schedules, zoning and maintenance
Building fabric	Roof, walls, doors, seals and air leakage
Loading bays	Door-opening times and damaged seals
Refrigeration	Temperatures, compressors, defrost and maintenance
Forklift charging	Timing, simultaneous load and charger efficiency
Solar potential	Roof condition, demand profile and DNO requirements
Energy contract	End date, charges and renewal terms
CCL and VAT	Whether the correct tax treatment is applied
Submetering	Whether major loads can be measured separately

FAQ

Summary

Official data suggests that a typical warehouse uses approximately 26.59 kWh of electricity and 54.74 kWh of gas per square metre annually.

At average Q1 2026 non-domestic prices, this produces an indicative combined energy cost of around £9.25 per square metre before VAT. A 5,000m² warehouse operating at these benchmarks would spend approximately £46,244 annually.

This figure can rise sharply for refrigerated, automated and continuously operating warehouses.

Warehouse businesses can often achieve their largest savings by:

• monitoring half-hourly consumption;
• upgrading and controlling lighting;
• improving heating controls;
• reducing loading-bay losses;
• optimising refrigeration;
• managing forklift and vehicle charging;
• reviewing maximum demand and capacity;
• using suitable solar and battery systems; and
• comparing energy contracts before renewal.

Comparing quotations using accurate consumption and half-hourly data helps suppliers price the risk more accurately and allows the warehouse operator to identify the contract structure best suited to its operation.