Businesses are seeing a shift in energy market dynamics, with it now being marginally cheaper to renew contracts with existing energy suppliers rather than switch.
That’s according to POWWR’s latest Quarterly Energy Barometer Report, that shows the average electricity bill for businesses has dropped by 5% compared to last quarter – from £5117 to £4863.
“This is a paradigm shift for the UK energy industry, with it now being cheaper to stay with an existing energy supplier than switching,” said Matt Tormollen, CEO of POWWR. “The difference may be slight – 1.4% – but it is something we haven’t seen for a long time.”
The report is based on more than 480,000 data points, reflecting usage and pricing trends from a wide variety of businesses.
It shows average energy usage continues to decline, with the typical UK business now consuming about 22 MWh per year – 8% less than the previous quarter and 12% less than the same period in 2024.
Regional premiums
Despite the overall drop in energy bills, regional disparities remain.
Businesses in North Wales pay the highest rates at £6120 annually – nearly £2000 more than their London counterparts.
South Scotland also saw an increase, with average bills rising by 6% to £5390.
Interestingly, while most businesses reduced consumption, very small enterprises using under 10 MWh annually increased their energy use by 2% this quarter.
Longer-term deals are becoming more popular, with average contract lengths increasing by two months to 29 months.
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