UK Business Electricity Bills Surge 24% Year on Year

POWWR Energy Barometer reveals UK firms are paying more despite falling consumption, with South Scotland first to break the £7,000 annual bill barrier

[Manchester, 23^rd July 2026] –  POWWR, a respected energy software provider, today releases its latest Quarterly Energy Barometer Report, revealing that UK businesses are paying 24.3% more for their electricity than last year. The average bill of £5783 per annum is 11.4% up on last quarter. Medium sized businesses have seen the biggest rise this quarter (of 20.5%) and are now paying over £10,000 annually on their electricity.

Businesses in North East England have seen their bills increase the most (by 29.2%), followed by those in South Scotland (20.8%), and London (16.6%). Businesses in South Scotland now pay the most for their electricity and are the first PES region to break through the £7000 barrier (up from £5848 to £7063 per annum), followed by North Wales (£6415), and London (£5985).

“The report illustrates that in these times of increasing geopolitical instability, UK businesses are now paying more for their energy than at any point since Q3 2023,” explains David Sheldrake, CRO, POWWR. “This is despite energy use decreasing almost across the board, but especially in the south where climate records have been broken.”

Whilst prices have risen, average energy usage has fallen across every region apart from North East England, with businesses using 7.8% less energy this quarter than last. The biggest energy use decreases were seen in South West England (down 15.4%) and South East England (down 15.2%).

The biggest consumers of energy, by quite some margin, are businesses in South Scotland who use on average 25,482 kWh per annum. This is over a third more energy than those in South East England.

Whilst the length of contracts that UK businesses are currently committing to remains relatively flat at 27 months, the report suggests we will likely see that rise within the next quarter. Not least because the cost of changing suppliers is now 11.9% more expensive than staying. This is likely due to existing customers using energy that suppliers have successfully hedged, while new customers are being offered contracts based upon future tariffs.

The POWWR Quarterly Energy Barometer Report provides unparalleled insight into just how much energy UK businesses consume and what they are paying for it. The report is based upon over 680,000 separate data points covering a variety of businesses, from boutique start-ups to large industrial and commercial organisations.

“This quarter’s Energy Barometer Report clearly shows that the impact of the recent geopolitical instability in the Middle East is continuing to be felt, with average bills increasing by 11.4% quarter-on-quarter and suppliers doing all they can to keep their customers,” adds Sheldrake. “It is difficult to see costs go down over the next quarter, even though usage will continue to fall during the summer months.”

Key findings

• • Electricity bills have increased by 11.4% quarter-on-quarter
  • Average bills are 24.3% more than the same quarter last year
  • Businesses in North East England have seen their bills increase by 29.2%
  • Energy usage has fallen by 7.8% quarter-on-quarter
  • The biggest consumers of energy remain businesses in South Scotland (25482 kWh)
  • Businesses can generally save 11.9% by remaining with their incumbent suppliers
  • Average energy contract length remains at 27 months 

POWWR will be going through the Quarterly Energy Barometer Report in detail on a webinar on Friday, July 31st 2026 at 11:00 AM (BST). To reserve your place, please click here. To access the full report from last quarter 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 30 energy suppliers and more than 1,400 brokers win more deals 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.