UK Business Energy Usage on The Rise

POWWR
3 min read
28 October, 2025
UK Business Energy Usage on The Rise
4:17

POWWR Energy Barometer shows average UK business now uses almost 22 MwH of energy per annum with biggest increase in energy usage seen from London businesses

[Manchester, 23rd October 2025]POWWR, a respected energy software provider, today releases its eighth Quarterly Energy Barometer Report, revealing that average energy usage has increased from just over 21 MwH of energy a year to just under 22 MwH. Businesses in London had the biggest rise in energy usage during the quarter (up 9.1% from 21286 KwH to 23224 KwH), making them the second biggest consumers of energy now in the UK, and second only to those in South Scotland (24234 KwH). In fact, businesses in London now consume almost a quarter more energy than those in the West Midlands (19708 KwH).

“While energy usage has increased for the first time this year, it is still 8.3% less than during the same period last year,” explains Matt Tormollen, CEO, POWWR. “Most of the increase was from businesses that use between 30-100 MwH a year. Smaller businesses, by contrast, saw little change and very large businesses that use over 100 MwH per annum actually saw their energy usage drop by over 3.3%.”

Bar chart showing average energy use by PES area across the UK, with London, North Wales/Cheshire, and South Scotland showing the highest average consumption in kWh — POWWR energy usage data visualization.

On average, UK businesses are paying 3.2% more for their electricity this quarter than last, with businesses in South Scotland (+ 9%), North East England (+7%), and South Wales (+7%) seeing the biggest rises. “Some of this increase could be down to suppliers already including the TNUoS charge and nuclear RAB levy prior to them coming into play in November. The cost of energy, on average, is still 13.3% less than this time last year however,” says Tormollen.

Line graph showing average energy spend by business size from Q1 2021 to Q3 2025, with very large businesses spending the most and all sizes peaking around Q4 2022 — POWWR energy market data visualization.

Despite these changes, businesses in the UK continue to commit to energy contracts of just under two and a half years (28 months), with little variation between regions. For those businesses looking to reduce their spend by switching suppliers, there are good deals available for those willing to shop around. In fact, businesses could save over 2% on average by switching suppliers.

The eighth 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 600,000 separate data points covering a variety of businesses, from boutique start-ups to large industrial and commercial organisations.

“Whilst energy usage and bills have both risen slightly this quarter, the future for the UK energy market continues to look bright. Usage and bills are significantly less than they were last year, the willingness by some businesses to sign long contracts shows positive market sentiment, and there are deals to be had for those willing to shop around,” adds Tormollen.

Key findings

  • Average energy usage is 3.6% more than last quarter
  • Businesses in London had the biggest rise in energy usage (up 9.1%)
  • The biggest consumers of energy are businesses in South Scotland (24234 KwH)
  • Businesses in South Scotland use almost a quarter more energy than those in Yorkshire
  • Bills have risen by 3.2% this quarter on average
  • Energy cost has increased by 9% in South Scotland, 7% in North East England, and 7% in South Wales
  • Average bills are down 13.3% on last year
  • Businesses can save over 2% by switching suppliers
  • Average contract length remains 28 months
To access the full POWWR Quarterly Energy Barometer Report please click here.

 

What Does Increased Usage Mean for Your Business?

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.

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