As we look ahead to 2025, the energy market for businesses remains a dynamic and often challenging landscape. While the immediate panic of extreme price hikes might have subsided for many, keeping a close eye on energy costs and supplier choices is still paramount for ensuring financial stability.
Recent research, conducted in late 2024 for Ofgem, offers a valuable snapshot of how businesses are currently experiencing the energy market. It's clear that while the majority are managing to keep up with their bills – around 70% reported no difficulty – a significant minority are still feeling the pinch. In fact, over a quarter (27%) admitted to struggling in some way, with 3% falling behind on payments. Interestingly, this struggle is more pronounced among sole traders and micro-businesses, and those with lower self-reported energy literacy. It’s a reminder that understanding your energy usage and the market can make a real difference.
When it comes to choosing an energy supplier, the message is loud and clear: price reigns supreme. A substantial 53% of businesses cited finding the cheapest option as their primary reason for selecting their current provider. This focus on cost-effectiveness is understandable, especially given the ongoing affordability concerns.
This drive for better prices has also led to an increase in businesses switching suppliers. A third of companies reported making a switch in the past year, a notable jump from previous years. Larger businesses, in particular, seem more inclined to shop around, with medium and large enterprises showing higher switching rates than smaller ones. It suggests a growing awareness and willingness to explore options to secure more favourable deals.
For those feeling overwhelmed by the sheer volume of choices and the complexities of energy contracts, the use of energy brokers is also on the rise. Just over a third of businesses have consulted a broker when selecting their current contract, and the feedback from those who did is largely positive. Nearly three-quarters of businesses that used a broker were satisfied with the service, appreciating the tailored solutions, the time saved on research, and the generally good customer service provided. It seems brokers are proving to be valuable allies in navigating the market.
Looking ahead to 2025, the lessons from the past year are clear. Businesses that actively monitor their energy consumption, understand their contract options, and aren't afraid to explore switching or seek expert advice are likely to be in the best position to secure competitive energy prices. The market is still evolving, and staying informed is your most powerful tool.