What is a kWh? Business energy consumption in plain English

A kWh is one kilowatt of power for one hour

A kilowatt-hour (kWh) is the amount of energy used by a 1,000-watt appliance running for one hour. It's the standard unit every UK business energy contract is priced in — both gas and electricity.

Practical examples: a 3 kW electric heater running for an hour uses 3 kWh; a modern LED-lit small office uses roughly 40-100 kWh a day.

Typical annual kWh by business type

Rough consumption bands we see in the market:

• Small office / shop / cafe — 15,000 to 30,000 kWh/year electricity
• Restaurant / pub — 30,000 to 90,000 kWh/year electricity, plus significant gas
• Small industrial unit — 50,000 to 150,000 kWh/year electricity
• Warehouse (chilled) — 200,000 kWh/year+ electricity
• Care home / hotel — 100,000 to 400,000 kWh/year electricity, plus gas heating

Reading kWh on your bill

Your bill will show meter readings (in kWh for electricity, or in cubic metres converted to kWh for gas) and the difference between the two readings billed at your unit rate. If the reading is estimated (usually marked 'E'), it's worth submitting an actual read to avoid rolling errors.