A Quarterly Review: The 2025 Energy Trends
- mitchthorne98
- Apr 10
- 2 min read
The first quarter of 2025 has already seen notable shifts in the energy sector, with fluctuating prices and evolving supplier behaviour impacting businesses across the UK. In this quick read, we break down the energy trends from January to April, explain what the UK energy price changes mean for your business, and show how PPS For Business can help you stay ahead.
January – A Cold Start with Cautious Optimism
The year kicked off with a slight dip in wholesale prices thanks to milder-than-expected winter weather and lower gas demand across Europe. However, suppliers remained cautious, holding contract rates higher than necessary—passing very little of the market savings onto customers.
For businesses, this meant limited benefit despite a calmer market. If your energy contract was up for renewal in January, chances are you weren’t offered the best rate.
Key Takeaway: A quiet market doesn’t always equal lower bills. PPS monitors real-time pricing to secure you the true value of market dips.
February – Volatility Creeps In
February saw volatility creep back in. Concerns around storage levels, ongoing global instability, and supplier speculation caused wholesale costs to spike briefly. Energy providers responded with immediate uplifts in their commercial contract offers, even for customers not due to renew.
Variable tariffs became even more unpredictable, and some SMEs began to feel the strain.
Key Takeaway: The market can change fast. PPS helps you lock in stability when it counts most.
March – Energy Trend Speculation Begins
As Ofgem’s April announcement drew closer, the conversation shifted to the anticipated energy price cap rises. This led many suppliers to quietly lift their prices in anticipation, even before any official changes took place.
If you received renewal quotes in March, they likely reflected inflated estimates rather than true market value. For many business owners, this created confusion and mistrust.
Key Takeaway: Don’t get caught out by pre-emptive supplier hikes. PPS brokers from the full market - not just what your current supplier decides.
April – The Price Cap Rises
The April Price Cap Rise hit, pushing domestic rates up and causing commercial pricing to follow suit. While the cap only legally affects households, the commercial sector often mirrors domestic patterns.
The result? New and renewing commercial energy contracts are now costing more. Many SMEs are still unaware they could be getting better rates by switching provider or renegotiating now.
Key Takeaway: The cap may not apply to businesses, but the consequences do. PPS is your partner for navigating UK energy price changes.
Looking Ahead
From January’s soft start to April’s sharp increase, the message is clear: staying passive could cost your business. At PPS For Business, we’re constantly tracking energy trends and price shifts so you don’t have to.
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