How businesses can cut energy costs and boost efficiency

Here's how small businesses can monitor energy costs even though they don't benefit from the Ofgem energy price cap.

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Small businesses struggling to get costs under control may have been relieved to see Ofgem’s announcement of lower energy prices earlier this month. However, the energy regulator’s price cap does not apply to gas and electricity contracts for businesses, where there is no maximum charging regime. While Ofgem’s move reflects falling energy prices on the wholesale market, which companies may benefit from, there is no automatic reduction in bills. 

Indeed, the vast majority of firms now get no protection at all from higher energy costs. The Energy Bills Discount Scheme, which provided some support for businesses, came to an end on 31 March 2024 and has not been replaced. That makes it imperative for small businesses to take action for themselves on energy costs – particularly amid predictions that prices could rise again this autumn. 

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.