UK Non-Domestic Energy Prices: What Businesses Need to Know (2020–2025)
From the June 2025 Quarterly Energy Prices report, we’ve analysed the key trends in electricity and gas prices for UK businesses. Here's what you need to know:
Electricity Prices
Between Q1 2024 and Q1 2025, the average electricity price paid by manufacturing businesses fell by 3.2%, landing at 18.5 pence per kWh. This marks a modest decline from the previous year’s 19.1 pence per kWh, offering some relief after the sharp increases seen during the energy crisis of 2022–2023.
Gas Prices
In contrast, gas prices for the same sector rose by 3.4%, reaching 4.2 pence per kWh. This increase reflects ongoing volatility in global gas markets and supply chain pressures.
Why does this matter?
Natural gas is still used as a fuel in the production of electricity. Any volatility in the prices has a knock-on effect on electricity - particularly in the uncapped non-domestic market.
Sector Impacts in Wales
Manufacturing Electricity costs are down, but gas remains a concern.
Commercial: Businesses on fixed contracts may see delayed impacts depending on renewal cycles. We’re seeing a number of businesses finding them stuck in poorly constructed deals by commission-targetted brokers.
What can you business do about it?
For the strategic and financial planners in your businesses, here are some simple, but impactful considerations:
Explore energy efficiency upgrades to mitigate rising gas costs.
Review energy contracts and consider whether fixed-rate options are best for your business.
If you are considering solar or battery investments, wait until you’ve installed to choose your supplier
Monitor Climate Change Levy (CCL) impacts and potential policy changes.
The chart shows how non-domestic electricity prices have evolved over the past five years and whilst reviewing the past doesn’t give us any clear forecasts, it is easy to see that prices remain significantly higher than pre-2021 levels, despite recent declines.
See how Tewdric Energy are saving money for businesses like Jaga Brothers