POWWR, an energy software provider, has shared research that found the average UK business consumes 23 MwH of energy a year, 12.3% less than they did last year.
It is very large companies that continues to drive the trend. Energy usage of small and medium sized businesses has actually slightly increased over the same period.
In addition, the average UK business is now spending £5160 for their energy annually, 12.6% more than last quarter.
This is, however, 17.7% less than what they were spending this time last year and around half what they were spending at the peak of the energy crisis in Q4 2022.
POWWR’s third Quarterly Energy Barometer Report is based on over 361,000 data points, meaning it provides insight into how much energy UK businesses are consuming, and what they are paying for it. The report shows that energy usage across the UK continues to decline quarter on quarter, likely due to initiatives brought upon by a mixture of environmental concerns and fears of rising energy prices.
Matt Tormollen, CEO at POWWR, said:
Whilst it is great that UK businesses are using less and less energy, the average amount they spend on electricity has increased. This is down to a number of factors. Firstly, despite market conditions being far more stable, the unit cost of energy has actually increased this quarter due to concerning weather patterns. Secondly, there has been an industry-wide increase to the standing charge (the daily charge set by the supplier regardless of energy usage). This has mostly been felt by smaller companies who have historically been likely undercharged. The good news is that the change to the standing charges is a natural correction that shouldn’t be seen again for quite some time.
There is no doubt that the energy sector remains extraordinarily complex, with numerous factors influencing energy pricing and consumption. However, the POWWR Energy Barometer Report proves that progress continues to be made by UK businesses to use less energy and secure longer-term contracts. And this will hold them in good stead, as increasing variability in markets due weather changes and geopolitical instability will inevitably affect prices.
Summary of key findings
- UK business’ average spend on electricity has increased this quarter by 12.6% (from £4584 to £5160)
- Companies in the North East of England pay the least (£4300) for their energy, but those in North Wales continue to pay the most (£6761)
- This is directly linked to energy usage, with businesses in North Wales using 47.6% more energy than those in the North East of England
- Energy usage throughout the UK continues to decline however, with the average UK business now consuming 23 MwH of energy a year, 12.3% less than last year
- The average energy contract length continues to be 25 months, with very little variation between regions
- Smaller companies are often keener to lock in their energy costs than larger companies (25 months versus 23 months)
To access the full POWWR Quarterly Energy Barometer Report please click here.
