[Manchester] – POWWR, a respected energy software provider, today reveals that whilst UK businesses are paying 6% less for their energy than last quarter, there are huge disparities from region to region. Whilst an average business in the North East of England pays only £4237 per annum for their energy, those in North Wales pay over £2000 more.
The report shows that after the various crippling price rises seen in recent times, UK business’ average spend on electricity has reduced this quarter from £5446 to £5117. This is almost half what it was during its peak in Q4 2022. Very small businesses, however, have seen their bills rise by almost 5%.
Whilst businesses in North Wales have seen their bills increase by 1% to £6363, those in South Scotland have seen their bills decrease by over 14%. Very large businesses in the region saw the biggest reduction of their bills, from £32400 to £28918 (11%).
The report reveals that average UK business now consume around 23 MwH of energy a year; 15% less than the same period in 2023. Whilst businesses that use more than 50MwH a year have seen their energy usage decrease this quarter, very small businesses that use less than 10 MwH of energy per year have actually increased their average usage by almost 10%.
“On the whole, the report brings good news for embattled UK businesses, showing that not only are they using 3% less energy than the previous quarter but are paying 6% less for it. Whilst some of the decrease will have come from the unseasonably mild weather seen during the quarter, it also points towards UK businesses becoming increasingly environmentally conscious,” explains Matt Tormollen, CEO, POWWR
At a time when both average energy usage and cost has decreased, the average contract term preferred by UK businesses has increased from 25 to 27 months. A business, however, would typically save 2.7% by signing this contract with someone other than their existing supplier. “With energy being a distressed purchase, such a small difference is not generally enough in real terms to provide a catalyst for change. However, once the difference rises to 5.5% for high energy usage businesses, it equates to well over £1000 on the bottom line so becomes far more worthwhile,” comments Tormollen.
“Overall, the latest POWWR Energy Barometer Report shows that the outlook for UK businesses is positive. There are increasingly competitive offerings available for businesses of all sizes and energy savings to be had for those willing to shop around. However, there are sizable differences in bills around the UK that will significantly affect a business’ profitability,” adds Tormollen.
Key findings
- UK business’ average spend on electricity has decreased this quarter from £5446 to £5117
- The average spend is half what it was at its peak in 2022
- The biggest reduction in bills was 14% for businesses in South Scotland
- Very small businesses across the UK, however, have seen bills rise by almost 5% this quarter
- Companies in North Wales generally pay over £2000 more for their energy than those in the North East of England
- Businesses on average used 3% less energy in Q4 2024 than Q3 of 2024
- However, very small businesses have increased their average usage by almost 10%
- The average energy contract length has increased to 27 months
- Businesses would typically save 2.7% by switching energy suppliers
To access the full POWWR Quarterly Energy Barometer Report please click here.
