Energy Cost Benchmarking: How Do Your Costs Compare to Similar Businesses?

Energy cost benchmarking compares your energy costs and consumption against comparable businesses — same sector, similar size, similar operating profile. It answers a question that most businesses never ask: are our energy costs normal, or are we significantly above what similar operations pay? The answer changes what you do next. A business significantly above sector norms has a prioritised efficiency agenda. A business at or below sector norms has less low-hanging fruit and should focus its energy management attention elsewhere.

---

The benchmarking metrics

kWh per square metre per year. The standard benchmark for most commercial building types. CIBSE (Chartered Institution of Building Services Engineers) publishes typical and good practice benchmarks by building type — offices, retail, hotels, schools, hospitals, and others. Your figure versus the CIBSE benchmark tells you whether your building’s energy performance is normal, poor, or better than average for your sector.

£ per square metre per year. The cost equivalent of the above, adjusted for your contracted rates. Useful for financial planning and for comparing the cost impact of rate improvement versus consumption reduction.

Unit rate benchmarks. Your contracted unit rate versus the market average for your supply profile. This benchmarks procurement performance rather than consumption performance. A business with good consumption management but poor procurement can show average kWh/m² but above-average cost per kWh.

---

Where to find benchmark data

CIBSE Guide F (Energy Efficiency in Buildings) contains the most comprehensive published benchmarks for UK commercial buildings by type. The Carbon Trust publishes sector-specific guides for many SME sectors including retail, hospitality, and manufacturing. DESNZ publishes energy statistics by sector that provide context for aggregate consumption intensity. For unit rate benchmarking, Ofgem publishes average non-domestic tariff data by region, and current market quotes for given consumption profiles provide a real-world sense check.

---

Multi-site benchmarking

For multi-site operators, internal benchmarking — comparing sites against each other — is often more actionable than external comparisons. If 10 sites have broadly similar consumption profiles and one is consistently 30% higher per square metre, that’s the target for investigation. The common causes: different occupancy patterns, different equipment age, different maintenance standards, or different contracted rates. Internal benchmarking is the single most effective tool available to multi-site operators for prioritising energy management investment.

Telnergy provides unit rate benchmarking as part of every contract review — comparing your current rate against live market quotes for your profile. If you’re paying above market, we’ll tell you by how much before we go to tender.

📱 WhatsApp: 07360 272168 | 📧 hello@telnergy.com | 📞 01202 028888 Telnergy Limited · Independent commercial energy consultancy since 2002 · Ofgem registered TPI · ADR Ref E3561 · CRN 04576876 · Christchurch, Dorset