As the UK heads into summer 2025, energy remains a critical concern for businesses of all sizes. While the energy crisis of 2022 may be behind us, energy prices are still above pre-2020 levels. Fortunately, with prices softening and greater clarity in the market, this summer offers a valuable opportunity for companies to reduce energy costs and improve efficiency.
This guide outlines the current UK energy market outlook for this summer, what to expect over the next couple of months, and practical, industry-neutral strategies every business can use to manage energy use more effectively.
What’s happening in the UK energy market
- Domestic price cap drops - Ofgem has confirmed that the domestic energy price cap will fall by £129 to £1,720 in July 2025. While this cap doesn't apply directly to businesses, it's an indicator of easing wholesale prices that benefit commercial contracts indirectly.
- Business prices are still high - Non-domestic energy rates remain well above 2019 levels. Wholesale gas and electricity prices have declined compared to early 2024, but uncertainty continues to drive conservative pricing strategies by suppliers.
- Volatility persists - The energy market remains vulnerable to supply shocks, geopolitical tensions, and unseasonal weather events. Businesses must stay alert and flexible in their energy planning.
Summer 2025 energy price forecast
- Possible price declines - Industry analysts predict a moderate fall in wholesale energy prices over the summer. Further reductions could come in the autumn if energy demand remains low and renewable output stays strong.
- Support from renewables - The UK grid is benefiting from record solar generation and increased power imports from Europe, helping to ease supply constraints. This boosts price stability during the sunnier months.
- Carbon pricing ahead - Upcoming changes related to carbon trading alignment with the EU may increase operating costs for energy-intensive industries. It’s vital for affected sectors to plan accordingly and factor these costs into budgets.
- Winter risk remains - While summer offers a buffer, forecasts suggest potential price spikes from Q4 onwards, driven by increased heating demand and possible import bottlenecks. Businesses should plan now to avoid winter surprises.
Six practical energy-saving strategies for UK businesses
Reducing energy use is one of the quickest ways to cut operating costs, enhance sustainability, and boost resilience against market volatility. These strategies can be tailored to all types of UK businesses, from retailers and office-based operations to manufacturers and hospitality providers.
Conduct an energy audit
An energy audit helps identify where and how your business consumes energy. Many inefficiencies go unnoticed without proper review. Audits highlight high-usage equipment, unnecessary lighting, outdated systems, and behavioural waste.
Upgrade equipment and systems
Older equipment often uses significantly more energy than modern alternatives. While upgrading may have upfront costs, the long-term savings in energy bills and maintenance often justify the investment. Focus on lighting, HVAC systems, industrial machinery, and insulation improvements.
Use smart controls and monitoring
Implement programmable thermostats, timers, and energy monitoring tools to automate and optimise energy use. These systems help identify peak usage times, reduce energy waste, and provide data to support decision-making.
Real-time energy data empowers businesses to shift consumption outside peak times, reducing costs.
Involve employees in energy management
Creating a culture of energy awareness among staff can produce meaningful savings. Encourage habits like turning off unused devices, using natural light where possible, and reporting inefficiencies. Appoint energy champions or run monthly challenges to maintain engagement.
Explore renewable energy solutions
If your premises allow, consider installing renewable systems such as solar panels. Alternatively, switch to a green energy tariff offered by many UK suppliers. It supports the transition to clean power and can offer pricing incentives.
Renewable adoption may also improve your company’s ESG credentials, attracting eco-conscious clients and partners.
Review and reassess energy contracts
Energy contracts shouldn’t be left to auto-renew. Reviewing contract terms annually ensures you're not locked into uncompetitive rates. Use comparison platforms or brokers to assess the best options based on current usage and trends.
Consider fixed contracts for stability or flexible ones if you're able to monitor and adapt to usage patterns.
Summer 2025 presents an important opportunity for businesses to stabilise energy costs before the colder months return. While there’s some relief in sight, the long-term market remains unpredictable. Companies that act now, by improving energy efficiency, engaging staff, and reviewing supplier contracts, will be better positioned to withstand future volatility.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
