UK business energy usage on the rise

23 October 2025

Average energy consumption by UK businesses has increased for the first time this year, according to new figures from energy software company POWWR.

The firm’s latest Quarterly Energy Barometer shows that the average business now uses just under 22 megawatt-hours (MWh) of electricity annually, up from slightly more than 21 MWh in the previous quarter. The rise was led by businesses in London, where energy use increased by 9.1% t to 23,224 kilowatt-hours (kWh), making the capital the second-largest regional consumer after South Scotland. 

Despite the quarterly increase, average usage remains 8.3% lower than during the same period last year. POWWR said most of the growth came from mid-sized companies using between 30 and 100 MWh per year. Smaller firms saw little change, while energy consumption among large users fell by more than 3%.

The report also found that electricity costs for UK businesses rose by 3.2% on average compared with the previous quarter. The biggest increases were in South Scotland, North East England and South Wales, where bills rose between 7 and 9%. POWWR suggested that some of the rise could reflect suppliers adjusting prices ahead of new industry charges, including the Transmission Network Use of System (TNUoS) fee and the nuclear Regulated Asset Base (RAB) levy due to take effect in November.

However, electricity remains 13.3% cheaper than it was a year ago. The report noted that most firms continue to sign contracts lasting about 28 months, and that businesses could still save around 2% by switching suppliers. 

Matt Tormollen, CEO of POWWR says:

“While energy usage has increased for the first time this year, it is still 8.3% less than during the same period last year. Most of the increase was from businesses that use between 30-100 MwH a year. Smaller businesses, by contrast, saw little change and very large businesses that use over 100 MwH per annum actually saw their energy usage drop by over 3.3%.

Whilst energy usage and bills have both risen slightly this quarter, the future for the UK energy market continues to look bright. Usage and bills are significantly less than they were last year, the willingness by some businesses to sign long contracts shows positive market sentiment, and there are deals to be had for those willing to shop around.”

To access the full POWWR Quarterly Energy Barometer Report please click here.