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Hospitality

Energy procurement for UK hospitality

Hotels, restaurants, pubs and venues run on tight margins and complicated energy profiles. We tender your electricity and gas properly, sort out rollovers and deemed rates, and keep every site on a sensible contract.

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  • Independent
  • 21+ suppliers
  • Established 2002
  • Single sites to multi-site groups
Why it's different

Hospitality energy is different.

A hotel, restaurant or pub doesn't use energy like an office. The contract should reflect how you actually trade.

  • Kitchen-heavy electricity

    Combi ovens, fryers, dishwashers and extraction typically account for 35–50% of a restaurant’s electricity, often running 12+ hours a day.

  • Gas for heat and hot water

    In hotels, space heating and hot water are typically 35–50% of total energy spend, with winter gas use three to four times summer levels.

  • Seasonal trading

    Summer peaks, winter lulls and event-driven spikes change your profile month to month, which should shape whether you fix or flex.

  • Multi-site groups

    Restaurant and pub groups often run dozens of meters on different suppliers and end dates, which is where rollovers hide.

  • Taking over premises

    New tenancies and acquisitions frequently start on deemed rates. Leave it a few months and the cost adds up quickly.

  • Notice periods and rollovers

    Many contracts need around 90 days’ termination notice. Miss it and you roll onto a rate that can cost 30–80% more.

  • VAT and Climate Change Levy

    Commercial energy carries 20% VAT as standard. The 5% rate and CCL exemptions apply only to low-usage sites, and are rarely checked.

  • Margin pressure

    Energy is typically the third or fourth-largest cost after staff and food, and one of the few that is genuinely negotiable.

The numbers

What hospitality energy really costs.

  • £80k–£150ktypical annual energy spend for a 100-bedroom hotel
  • £2k–£4kmonthly electricity for a busy pub with a kitchen
  • 10–30%typical saving from tendering vs an auto-renewed contract
  • 30–80%extra cost of out-of-contract rates vs a negotiated tariff

Figures from Telnergy client bills and contract reviews. Individual costs and savings depend on consumption, contract history and market timing.

Our process

How Telnergy buys energy for hospitality.

  1. 1

    Bill and contract review

    Every site, meter, end date and notice period, in one place.

  2. 2

    Usage profiling

    Kitchen load, seasonal swings, laundry, pools and opening hours.

  3. 3

    Market tender

    Your actual profile taken to 21+ suppliers, electricity and gas separately and together.

  4. 4

    Recommendation

    One clear recommendation, with fixed vs flexible explained for your trading pattern.

  5. 5

    Switch handled

    Paperwork, supplier notices and go-live managed for you.

  6. 6

    Renewals tracked

    We contact you 3–6 months before each renewal, so no site rolls over.

Results

Hospitality case studies.

14-site restaurant group

Fourteen sites on scattered contracts and end dates. We consolidated the portfolio, aligned renewals and tendered the group together.

£14,000 a year saved on gas, with one renewal process instead of fourteen.

Midlands hotel

A long-standing contract that hadn't been tested against the market. We retendered it across our full supplier panel.

£6,435 a year saved, roughly 22% of total energy spend.

FAQs

Common hospitality energy questions.

When should a hotel or restaurant start its energy renewal?

Start 3–6 months before your contract ends, and check your termination notice period first. Many contracts need around 90 days’ notice; miss it and you can roll onto an out-of-contract rate costing 30–80% more.

We’ve just taken over a pub or restaurant. Are we on a deemed contract?

Very possibly. When you take over premises without agreeing a contract, the existing supplier usually puts you on deemed rates, which are among the most expensive in the market. Send us the first bill and we’ll get the site onto a proper contract.

Should a seasonal hospitality business fix or flex?

Most single-site hospitality businesses are better served by a fixed contract structured around their seasonal profile, because budget certainty matters more than chasing the market. Large groups with stable portfolios can sometimes benefit from flexible buying. We’ll tell you which suits you.

Can you manage energy across a group of restaurants or pubs?

Yes. We consolidate sites, align end dates where it makes sense and tender the portfolio together. One 14-site restaurant group saved £14,000 a year on gas this way, with one renewal process instead of fourteen.

Do hospitality businesses qualify for 5% VAT on energy?

Usually not. Commercial energy is charged at 20% VAT; the 5% rate and Climate Change Levy exemption apply only to very low-usage sites or qualifying residential use. We check your bills are charged correctly.

Can you check what our current broker is charging?

Yes. Broker commission can run to 3–5p/kWh at the expensive end. We’ll review your contract and tell you what you’re paying and to whom. Our own fee is agreed upfront and disclosed in writing before you sign.

Guides

Hospitality energy guides.

Writing about hospitality energy costs? Telnergy provides independent comment, data and practical examples for journalists and trade publications.

Press & media →

Contract renewing in the next 18 months?

Send us a recent electricity or gas bill for each site. We'll tell you where you stand, when to act and what it's likely to save.

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