Are Business Energy Prices Going Up in the UK?

Business Energy Prices in 2025: What You Need to Know
If you run a business in the UK, you’ll already know that business energy prices have been anything but predictable. After a few turbulent years, many businesses are asking: are rates still going up? Sadly, the answer is mostly, yes.
While wholesale prices have dropped slightly compared to the peak of the 2022 crisis, business energy rates in 2025 are still much higher than the long-term average. Many businesses are paying between 25p to 35p per kWh for electricity and 6p to 9p per kWh for gas, depending on contract length and region.
Unlike households, there is no price cap for businesses. This means if you're out of contract or on a variable tariff, you could be paying even more. Suppliers are cautious, locking in higher rates because of ongoing uncertainty in the energy markets.

Why Are Business Energy Rates Still High?

Because there is no regulated cap on business energy bills, suppliers can adjust prices as market conditions change. If wholesale prices spike, businesses feel it straight away.
Wholesale Market Volatility
Even though wholesale gas prices have eased from 2022 levels, they remain volatile. Global supply issues, political tensions, and increased demand for electricity all play a role in keeping business energy rates high.
Long-Term Contracts Priced Higher
Many businesses renewing contracts in 2025 are finding that the best fixed deals are still significantly more expensive than contracts taken out pre-2021. Locking into a new long-term deal today might help you save compared to staying on a variable rate, but it won't feel exactly "cheap" compared to historic norms.

How Can Businesses Save on Energy Costs?

1. Compare and Lock In Early
The best way to save on business energy is to shop around. Don’t accept your renewal quote without checking what else is available. Some suppliers are offering cheaper fixed rates for 12 to 24 months if you switch early.
2. Use Less, Pay Less
Simple energy-saving measures — like smart meters, LED lighting, and switching off unused equipment — can still make a real difference. Reducing your usage is one of the quickest ways to make your bills cheaper without switching supplier.
3. Consider Renewable Energy Contracts
Green energy tariffs aren't just good for the environment, some suppliers now offer cheap renewable business contracts, sometimes undercutting traditional deals. It's worth exploring if you're looking to secure savings and protect yourself from fossil fuel price rises.

Finding Cheap Business Energy Rates and Reducing Your Bills

While business energy prices remain stubbornly high in the UK, there are still opportunities to save money. Locking in a fixed deal, reducing consumption, and shopping around for cheap tariffs can all help protect your bottom line. Staying proactive and reviewing your business energy plan regularly is key to avoiding unnecessary costs in 2025 and beyond. Thanks to our strong partnerships with leading suppliers, we can access the best business energy rates and secure the right deal for your needs. Contact us today for a your business energy quote, or call us on 0330 027 2435.