Businesses could cut costs by switching energy suppliers, report finds
UK businesses could save 4.2% on average by switching suppliers, equating to around £250 for small sized businesses and £500 for medium sized ones.
This is according to the POWWR Quarterly Energy Barometer Report, which provides insight into just how much energy UK businesses consume and what they are paying for it. The report is based upon over 635,000 separate data points covering a variety of businesses, from boutique start-ups to large industrial and commercial organisations.
The report shows that UK businesses are paying slightly less (1.1%) for their electricity this quarter than last. However, the average cost of energy varies by up to 39% region to region. In fact, data shows that businesses in North Wales pay £1609 more for their energy than those in North East England (£5746 vs £4137 per annum).
“We are entering a period of more stability following years of volatility,” explains David Sheldrake, CRO, POWWR. “However, whilst the overall trend remains for bills to reduce, there are huge differences in average costs for electricity across the UK. It is also worth noting that medium sized businesses that typically use between 30-50 MwH of energy per annum have seen their bills increase by 2.9% quarter on quarter.”
During Q4, energy usage has decreased by 2.7%, from an average 21870 KwH of energy a year to 21291 KwH. This is 7.8% less than during the same period in 2024. Much of this reduction has been driven by the smallest businesses that have seen their energy usage drop by 3.5% quarter on quarter and 9.4% year on year.
There have been large reductions in energy usage across several of the major PES areas, with North Scotland seeing a drop of 9.7%, East Midlands seeing a drop of 8.2%, and South Wales seeing a drop of 7.9%. Interestingly, businesses in South Scotland now use 6655 KwH more energy than their neighbours in the North.
Despite these changes, businesses in the UK continue to commit to energy contracts of almost two and a half years (28 months), with little variation between regions. The only exception is large businesses, that prefer slightly shorter contracts of 26 months.
“This quarter’s energy barometer shows that whilst the market is more stable than it has been for a couple of years, there are still deals to be had. This is a trend I expect to see continue throughout 2026 as suppliers find themselves having to compete increasingly on price in a way to woo businesses onto longer contracts,” adds Sheldrake.
