Business energy bills are projected to remain significantly above pre-crisis levels, with small businesses such as pubs, restaurants and independent retailers expected to pay an average of £13,264 annually by April 2025.
According to Cornwall Insight’s Business Energy Cost Forecast, this represents a 70% increase compared to the 2020-2021 period.
Although energy prices have stabilised since the peak of 2022-2023, when small business electricity bills could exceed £20,000 annually, they remain well above the pre-crisis range of £7,000 to £8,000 per year.
Experts note that this trend is expected to continue into 2025 and potentially beyond.
The energy market has not fully recovered from the impacts of the energy crisis and the geopolitical tensions related to the Russian invasion of Ukraine, which continue to affect wholesale prices.
Recent global events, including further tensions in Russia, have contributed to a fresh increase in these prices, alongside a slight rise in standing charges.
This combination is expected to lead to a modest increase in business energy costs for the 2024-2025 period.
Unlike households, businesses are not protected by a price cap, leading to calls from business groups for increased government support.
They argue that the government has not given sufficient attention to the rising energy bills faced by businesses, despite their critical role in the economy.
