Energy rates don’t need to squeeze your business budget

The UK’s continued reliance on natural gas is a major driver behind high energy costs. Despite considerable investment in renewable energy generation, the price of electricity in the wholesale market is still determined by the most expensive generation method in use. Typically, the marginal price is set by gas-fired plants, which are often the most expensive at peak times. Therefore, when global gas prices rise, UK electricity prices follow.

This year, geopolitical instability has continued to disrupt supplies and drive competition for liquefied natural gas imports. At the same time, uncertain outputs from wind and solar farms have forced greater reliance on gas. The Financial Times recently reported that in the first six months of 2025, Scottish wind farms were paid not to produce 37 per cent of their planned total output due to grid constraints. When renewable projects are curtailed, gas-fired power plants must fill the gap in order to meet demand, keeping wholesale electricity prices high and unpredictable.

A further challenge for businesses is that, unlike households, businesses do not have an Ofgem price cap to limit what suppliers can charge. This leaves them fully exposed to the volatility of wholesale energy prices, making budgeting and cost control much more difficult.

Four ways to keep costs low

Though many of these factors seem out of a business’ control, there are steps they can take to keep costs down.

Firstly, business energy rates vary widely between suppliers and contracts. Comparing offers and negotiating for more favourable terms is a must when it comes to energy. If you don’t know where to start, it can be beneficial in the long run to consider expert procurement support. If trusted expertise can land you a great deal, this will pay off in time.

It’s also worth considering fixed-rate tariffs if you see a competitive price. While it’s not ideal to lock into a fixed-rate tariff when market prices are high, you can turn this certainty to your advantage when prices are lower than usual. However, make sure to factor in the contract length, any early exit fees and whether non-energy costs such as network and environmental charges are included.

Make sure to start the renewal process well before your current contract ends, as this protects you from automatically being moved onto more expensive default rates or rushing to find another deal at the last minute.

On the operational side, monitoring and reducing consumption through simple measures such as installing LED lighting, using smart thermostats or even just reviewing usage patterns can lead to significant savings.

Why consolidate providers?

Another approach is consolidating your business utilities under a single provider. Most SMEs are likely to need energy, broadband, phone and water services. Using multiple suppliers means dealing with multiple contracts, invoices and points of contact, adding to the administrative workload and making the risk of missing renewal deadlines more pronounced.

By bringing these services together under one provider, SMEs may be able to access bundle discounts and communicate with just one account manager that is familiar with the full scope of their needs.

Crystaline has recently expanded its services offering, meaning SMEs can now group broadband, mobile, telephone and IoT with energy services. By partnering with Fidelity, a specialist in business energy procurement, Crystaline can secure a competitive price for gas, electricity, water or all three by analysing rates from more than 25 of the UK’s leading suppliers. Plus, the entire switching process is managed on behalf of your business, making the switch as simple and stress-free as possible.

SMEs may feel helpless as the energy market continues to face instability. However, there are steps they can take to regain control over their energy spending. By proactively monitoring usage, comparing deals and consolidating core business services through a trusted partner, SMEs can save valuable time and money.

Crystaline now offers business energy procurement alongside its managed communications services. To find out how much your business could save, send us your latest energy bill.