How Much Does It Cost to Run a Pub? Energy Costs Per Month (2026)

Most UK pubs spend between £750 and £5,300 a month on gas and electricity, before VAT. A small wet-led local sits at the bottom of that range and a busy food-led gastropub at the top. Energy is usually a pub's biggest overhead after staff and stock, so getting the contract right makes a real difference to your margins.

This guide covers typical costs by pub size, where the energy goes, how to work out your own bill and how to bring it down.

Typical monthly energy costs by pub size

These estimates use average fixed business rates from September 2026: about 26 to 27p/kWh for electricity and 7.7 to 8.2p/kWh for gas, plus daily standing charges. Your actual rates depend on your usage, meter type, location and when you sign.

Where does a pub's energy go?

Cellar cooling is the one that surprises most landlords. It runs 24 hours a day, every day, whether the pub is busy or closed.

Why pub energy bills vary so much

Two pubs the same size can have very different bills. The main reasons are:

• Your contract. Pubs that let a contract lapse often roll onto out-of-contract or deemed rates, which can be far higher than a negotiated fixed price.
• Food service. An electric kitchen running lunch and dinner can add several hundred pounds a month.
• Cellar equipment. Old or poorly maintained cooling runs harder and longer.
• Opening hours. Late licences mean more lighting, heating and equipment time.
• The building. Older pubs with high ceilings, single glazing and open fires lose heat fast.
• Season. Winter gas bills can be double summer ones for pubs with large heated areas.

How to work out your own pub's energy bill

1. Find your monthly kWh for electricity and gas on a recent bill or your smart meter.
2. Multiply each by its unit rate.
3. Add the daily standing charges multiplied by the days in the month.
4. Add Climate Change Levy (CCL) where it applies, then VAT.

Example: a mid-size pub using 5,000 kWh of electricity and 8,000 kWh of gas in a month.

• Electricity: 5,000 × 26.2p = £1,310
• Gas: 8,000 × 8.1p = £648
• Standing charges: about £80
• Total before CCL and VAT: about £2,038 a month
• With VAT at 20%: about £2,446 a month

Most pubs pay 20% VAT on energy. Very small users may qualify for 5%, so check your bill.

8 ways to cut your pub's energy costs

1. Never roll onto out-of-contract rates. Diary your end date and start comparing up to 12 months before it. This is usually the biggest single saving, typically 8 to 18%.
2. Service your cellar cooling. Clean condensers and check door seals. Keep the cellar at the right temperature, not colder.
3. Switch to LED lighting. It's quick to pay back in bars and dining areas lit all day.
4. Put timers on everything that can wait. Glass washers, hot water, heating and external lights.
5. Switch off at close. Coffee machines, fryers and display fridges don't need to run overnight.
6. Insulate hot water tanks and pipes. It's cheap and reduces gas use.
7. Check your meter type. Larger pubs may be on, or suit, a half-hourly meter, which changes how you're charged.
8. Get usage data. A smart meter or monthly readings show where your money goes and stop estimated bills.

Fixed or flexible energy contracts for pubs?

Most single pubs are better on a fixed contract. You know your unit rate for one to three years, which makes budgeting much easier. Flexible contracts buy energy in stages and can work for larger pub groups with the scale to manage price risk. If you're unsure, a broker can show you both side by side.

Frequently asked questions

How much does a small pub spend on energy each month?

A small wet-led pub typically spends £750 to £1,450 a month on gas and electricity before VAT.

What uses the most energy in a pub?

Cellar cooling and refrigeration, usually 25 to 35% of the total. In food-led pubs the kitchen can match it.

Do food-led pubs cost more to run?

Yes. A working kitchen can add several hundred pounds a month to the energy bill.

Can switching supplier really cut my pub's bill?

Often, yes. Moving from a rolled-over rate to a competitive fixed deal typically saves 8 to 18%.

When should I renew my pub's energy contract?

Start comparing up to 12 months before your end date. Rates move, and leaving it late limits your options.

Find out what your pub should be paying

Send us a recent bill and we'll compare 15+ suppliers for free. Get a pub energy quote or call 0151 541 6767.

Unit rates based on average UK business energy prices, September 2026, from MoneySuperMarket. Usage figures are typical ranges and vary by site.