“Increasingly Concerned”: Renewed Pressure on Government to Tackle Sky-High Business Energy Costs

Trade bodies representing both industry and the energy sector have issued a fresh call for government action to address what they describe as persistently high energy costs for UK businesses - a growing drag on competitiveness, investment and future growth.

A new joint report from Energy UK and the Confederation of British Industry lays out the case that business energy costs remain significantly elevated relative to many major economies. Despite wholesale prices no longer sitting at crisis highs, energy bills for industrial and commercial users have stayed well above pre-crisis levels, with electricity and gas costs still materially higher than before the global price shocks of recent years.

According to the report, these elevated costs are not just a short-term headline: they are undermining UK competitiveness, delaying investment decisions and reducing firms’ capacity to innovate - particularly in energy-intensive sectors.

Both Energy UK and the CBI argue that while government support measures to date have focused heavily on households, business support has been relatively limited, and what exists often lacks the scale and longevity needed for corporate planning. Their joint report proposes a national strategy to cut business energy costs, deeper policy analysis and coordinated reforms to reshape how energy costs are managed for business users of all sizes.

For energy buyers - from SMEs to multi-site enterprises - this spotlight underscores a critical point: domestic energy pricing remains a structural cost driver that is now garnering cross-industry and political attention. Brokers can help clients interpret this backdrop by highlighting not just tariff choices, but long-term exposure to non-commodity costs, risk management tools like fixed and flexible purchasing, and engagement with emerging policy developments.

In a market where energy costs increasingly influence investment decisions, this renewed push for government action signals that energy pricing - and the policy response to it - will continue to be a major business issue throughout 2026 and beyond.