Business Energy Market Update: June 2025

There was precious little movement over May for most of the forward contracts for gas and power up to Winter this year. Day ahead power closed the month roughly 7% down on its start as did July’s deliveries whereas June remained relatively stable. Winter 25 power rose slightly as did contracts for delivery in Q1 of 2026 with there being very little change then out to the end of the curve. The story was similarly uneventful for gas, despite increasing renewable generation through the month, causing gas for power demand to fall, contracts for summer delivery through to Autumn rose by a few percent. Winter 25 and the majority of 2026 saw wholesale prices rise closer to 5 percent although they had traded higher in the month.

It seems to come round far too quickly but at the very end of last month, the latest price cap change was announced and for the first time in 12 months, prices are due to fall. The difference to an average annual bill will be a reduction of £129, due to take effect on July 1st.

I mentioned last month that it might be a good idea to fix if you are currently on a variable tariff but to make sure there were no exit fees so if you haven’t already, just make sure you get the new price cap tariff before going ahead.

For those of you on older fixed deals, it’s still worth checking your current deal for any exit fees, if they are low or non-existent, there’s nothing to stop you switching to a cheaper deal in July. Although you might want to wait, as whilst the energy market is an unpredictable beast early indications are that there may be a further, smaller drop in the price cap for Autumn. This is by no means guaranteed and is very much dependent on how the wholesale market behaves over Summer though so please bear that in mind.

Of course, you can always hedge your bets and jump onto a tariff now that doesn’t have an exit fee and move again should the markets go our way!!

Its always worth remembering though, the energy price cap only limits the amount suppliers can charge for domestic energy and it is predicted to rise again this Winter however we are unsure by how much. For business energy users who do not benefit from any such price cap, if you are due to renew before Spring next year now might be a good time to compare quotes and lock in your rates to beat any price rises.

In May an important milestone was reached which seems to have flown under the radar for many, the Great British Energy Bill passed through Parliament and received royal assent. With £8.3 billion committed to the development of new clean energy sources and a mission to accelerate the clean power transition, the government is making good on its manifesto pledge to turn Britain into a “clean energy superpower.”

With initiatives such as the investment of £200 million in funding for new rooftop solar power and renewable energy schemes for schools, hospitals and communities potentially saving hundreds of millions on their energy bills, the scheme finally looks set to deliver on one of Labour’s key election promises and may even realise savings for the taxpayer. Alongside this funding the government has so far announced a £300 million to boost offshore wind supply chains, and £4 million to support community energy projects in Scotland. Also in April, NHS Humber Health Partnership was awarded nearly £8.5 million from this fund, which will deliver up to £14.2 million in lifetime bills savings.

Whether it’s billing issues, contract renewals, or just needing a bit of honest advice, the team’s always on hand to help out so please get in touch.