Business Energy for Cafés & Coffee Shops
A café’s energy bill is driven by a few machines that run for most of the day: the espresso machine, water boilers, dishwashers and 24/7 refrigeration. Understanding that profile is the key to picking the right contract and supplier.
Where a café’s energy goes
- Espresso machines keep large boilers hot all day — often the single biggest electricity user, even when no coffee is being made.
- Fridges, display chillers and freezers run around the clock, so night-time usage is never zero.
- Dishwashers, water heaters and panini grills create sharp peaks at breakfast and lunch.
- Many cafés are electricity-only; if you have gas for cooking or heating, compare dual-fuel and separate contracts.
Choosing a contract and supplier
- Fixed-price contracts (1–3 years) give predictable costs — useful when margins per cup are thin.
- Compare the standing charge as well as the unit rate: a small café with modest usage can be hit hardest by a high daily charge.
- If you rent your premises, check your lease: some landlords supply energy, and you may not be able to switch.
- Ask any broker to state their commission in writing before you sign.
- Look for suppliers offering half-hourly smart meter data so you can see what your machines cost overnight.
Quick ways to cut a café’s bills
- Put the espresso machine on a timer so it heats up 30–45 minutes before opening, not hours earlier.
- Descale regularly — scale on boiler elements makes them work harder.
- Check fridge door seals and keep condenser coils clean; set chillers no colder than food safety requires.
- Only run the dishwasher full, and switch boilers and water heaters off overnight where safe.
- Switch to LED lighting and use motion sensors in storerooms and toilets.
Frequently asked questions
What is the best energy supplier for a café or coffee shop?
There is no single best supplier — the cheapest depends on your postcode, meter type, usage and contract length. Get quotes from several business suppliers (or a broker who discloses commission), compare the unit rate and standing charge together, and check customer service ratings, because billing problems cost small businesses time.
How long are business energy contracts for cafés?
Most are fixed for 1, 2 or 3 years. Longer contracts lock in today’s price; shorter ones let you re-shop sooner if prices fall. Business contracts usually have no cooling-off period, so read the terms before agreeing.
Is business energy covered by the Ofgem price cap?
No. The Ofgem price cap only applies to domestic tariffs. Business energy prices are set by each contract, which is why comparing quotes before your renewal date matters so much.
How much VAT and Climate Change Levy do businesses pay on energy?
Business energy normally carries 20% VAT plus the Climate Change Levy (CCL). If your usage is very low (under 33 kWh of electricity or 145 kWh of gas per day on average) the supply counts as "de minimis": VAT drops to 5% and CCL is not charged. Check your bill shows the correct rate.
Am I a microbusiness, and why does it matter?
You are a microbusiness if you have fewer than 10 employees (or equivalent) and annual turnover or balance sheet of no more than €2 million, or if you use under 100,000 kWh of electricity or under 293,000 kWh of gas a year. Most cafés, takeaways and small restaurants qualify, and microbusinesses get extra Ofgem protections — including being told how much of the price goes to a broker, and access to the Energy Ombudsman for complaints.
What happens if my business contract ends and I do nothing?
You may be rolled onto a new contract or moved to "out-of-contract" or "deemed" rates, which are usually much more expensive. Note your contract end date and the notice window in your terms, and start comparing quotes a few months before it ends.
More business energy guides
This guide is general information, not financial advice. ChangeEnergyProvider.com is independent and not paid by any supplier.