Current trends have shown that in February 2025, wholesale gas prices have surged to a two-year high, reaching 140 pence per therm. These are price levels that have not been seen since January 2023.
This is going to cause challenges for energy consumers, particularly businesses. Find out how your company can stay on top of gas prices and protect your bottom line.
Impact on business energy costs
Wholesale gas prices rising could cause an increase in energy bills for businesses. Many companies operate on fixed-rate energy contracts; however, as these contracts expire, businesses may face higher rates upon renewal. This could strain operational budgets, especially for energy-intensive industries.
Economic implications
Higher energy costs can lead to increased production expenses, which businesses might pass on to consumers through higher prices for goods and services. This can contribute to inflation within the economy. Additionally, businesses may need to reassess their operational strategies, potentially delaying expansion plans or reducing workforce numbers to manage rising costs.
Strategic considerations for businesses
Given the current energy market volatility, businesses should:
- Review energy contracts: Assess existing energy agreements and explore options for locking in rates before further increases occur.
- Enhance energy efficiency: Invest in energy-efficient technologies and practices to reduce overall consumption and mitigate the impact of rising prices.
- Diversify energy sources: Consider integrating renewable energy sources, such as solar or wind, to decrease reliance on natural gas and insulate against market fluctuations.
- Financial planning: Allocate resources to manage potential increases in operational costs and explore government support programs designed to assist businesses during energy crises.
The surge in wholesale gas prices presents a complex challenge for UK businesses. Proactive measures, including strategic energy management and financial planning, are essential to navigate this period of uncertainty and maintain operational resilience.
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.
