POWWR Energy Barometer Reveals a Paradigm Shift for The UK Energy Market

Businesses now save money by renewing with incumbent supplier rather than switching

[Manchester, 24th April 2025] – POWWR, a respected energy software provider, today reveals the results of its Quarterly Energy Barometer Report that show it is now generally cheaper for UK businesses to stay with an existing energy supplier than switch. On average, UK businesses pay 5% less for their electricity than last quarter (down from £5117 to £4863). Energy usage also continues to decline.

“This is a paradigm shift for the UK energy industry, with it now being cheaper to stay with an existing energy supplier than switching. The difference may be slight – 1.4% – but it is something we haven’t seen for a long time,” explains Matt Tormollen, CEO, POWWR. “In a market that is highly competitive and homogenous, fostering customer loyalty has never been more important.”

The sixth POWWR Quarterly Energy Barometer Report provides valuable insight into just how much energy UK businesses are consuming, and what they are paying for it. The report is based upon over 480,000 separate data points covering a variety of businesses, from boutique start-ups to large industrial and commercial organisations.

The report reveals that overall UK businesses are paying 5% less for their electricity than they were last quarter (down from £5117 to £4863). There continues to be large disparities depending on where the business resides, however. Businesses in North Wales continue to pay the most (£6120) for their energy. This is almost £2000 more than those in London. The second highest bills are paid by those in South Scotland, who have seen their bills rise by 6% from £5087 to £5360.

Part of this overall reduction is being driven by energy usage decreasing quarter on quarter. The average UK business now consumes around 22 MwH of energy a year. This is over 8% less than last quarter and 12% less than the same period in 2024. Whilst the majority of businesses have seen their energy usage decrease, very small businesses that use less than 10 MwH of energy per year have actually increased their average usage this quarter by 2%.

Further, as market confidence continues to improve, longer term energy deals are increasingly being offered by suppliers. This has led to the average contract length to increase by two months to 29 months.

“Overall, the outlook for UK businesses is positive. Average bills have decreased by £250; average energy usage has reduced by 8%; and confidence has returned, with the average contract length being almost two and a half years,” adds Tormollen. “Whilst in the past, product innovation was used by suppliers to give them the edge, now it is increasingly coming down to price. This is good news for businesses as it should lead to average bills continuing to decrease this year.”

Key findings

• It is 1.4% cheaper to remain with a current supplier than switch
• Average bills have reduced by around £250 per annum
• Businesses in North Wales pay £2000 more for their energy than those in London
• Average energy usage has decreased by 8% quarter on quarter and 12% year on year
• Average contract length has increased by two months to 29 months

To access the full POWWR Quarterly Energy Barometer Report please click here.

About POWWR

POWWR is a cloud-based software provider for the energy and utilities sector. Its advanced platforms and simple solutions help over 45 energy suppliers and more than 1,100 brokers across the United States and the United Kingdom win more deals, manage risk, and grow their businesses. The company was previously known as UD Group in the United Kingdom. For more information on POWWR, please visit https://www.powwr.com/ or contact Jo Forsdike at jo.forsdike@powwr.com.