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.

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.

Planning Implications

Businesses should:

• 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.

Long-Term Trends

The chart shows how non-domestic electricity prices have evolved over the past five years. Despite recent declines, prices remain significantly higher than pre-2021 levels.

While electricity prices are stabilizing, gas costs continue to fluctuate. Strategic planning and contract reviews are essential for managing energy expenses.

See how Tewdric Energy are saving money for businesses like Jaga Brothers