POWWR Energy Barometer Signals UK Energy Market Transformation

Welcome, Net Zero News readers! In a significant development for the UK energy landscape, recent findings from POWWR, a distinguished energy software provider, reveal a notable shift in the dynamics of energy procurement for businesses across the nation. According to the latest Quarterly Energy Barometer Report, it has become generally more economical for UK businesses to renew their contracts with their current energy suppliers rather than switching to new ones.

On average, UK businesses are now paying 5% less for their electricity compared to the previous quarter, with costs decreasing from £5,117 to £4,863. This trend reflects a broader decline in energy consumption, indicating a positive movement towards more efficient energy use.

“This is a paradigm shift for the UK energy industry, with it now being cheaper to stay with an existing energy supplier than switching. The difference may be slight – 1.4% – but it is something we haven’t seen for a long time,” explains Matt Tormollen, the CEO of POWWR. “In a market that is highly competitive and homogenous, fostering customer loyalty has never been more important.”

The sixth edition of the POWWR Quarterly Energy Barometer Report sheds light on the energy consumption patterns and associated costs for UK businesses. The report is grounded in a robust analysis of over 480,000 data points from a diverse range of enterprises, spanning from boutique start-ups to extensive industrial and commercial organisations.

The report highlights that while businesses overall are enjoying lower electricity bills, there remain substantial regional disparities. Notably, businesses in North Wales face the highest energy costs at £6,120, which is nearly £2,000 more than their counterparts in London. Meanwhile, businesses in South Scotland have experienced a 6% increase in their energy costs, rising from £5,087 to £5,390.

One of the contributing factors to the overall reduction in energy costs is the decline in energy usage, which has been observed on a quarter-on-quarter basis. On average, UK businesses now consume around 22 MWh of energy annually, marking an 8% decrease from the previous quarter and a 12% reduction compared to the same period in 2022. However, it is noteworthy that very small businesses, which consume less than 10 MWh of energy per year, have seen a slight increase in their energy usage by 2% this quarter.

As market confidence improves, suppliers are responding by offering longer-term energy contracts, which has resulted in an increase in the average contract length by two months, now standing at 29 months. This indicates a positive trend for businesses seeking stability and predictability in their energy costs.

“Overall, the outlook for UK businesses is positive. Average bills have decreased by £250; average energy usage has reduced by 8%; and confidence has returned, with the average contract length being almost two and a half years,” adds Tormollen. “While in the past, product innovation was used by suppliers to gain an edge, it is increasingly coming down to price. This is good news for businesses as it should lead to average bills continuing to decrease this year.”

Key Findings

• It is 1.4% cheaper to remain with a current supplier than to switch.
• Average bills have reduced by around £250 per annum.
• Businesses in North Wales pay £2,000 more for their energy than those in London.
• Average energy usage has decreased by 8% quarter on quarter and 12% year on year.
• Average contract length has increased by two months to 29 months.

For those interested in delving deeper into the findings, the full POWWR Quarterly Energy Barometer Report is available for access. You can explore further insights and detailed data that can assist businesses in making informed decisions regarding their energy procurement strategies.

About POWWR

POWWR is a cloud-based software provider dedicated to the energy and utilities sector. With its advanced platforms and user-friendly solutions, POWWR supports over 45 energy suppliers and more than 1,100 brokers across both the United States and the United Kingdom. The company, previously known as UD Group in the UK, is committed to helping businesses win more deals, manage risk effectively, and foster growth. For more information on POWWR and its offerings, please visit www.powwr.com or contact Jo Forsdike at jo.forsdike@powwr.com.

As we navigate these changing energy landscapes, it is imperative for businesses to stay informed and adaptable. The evolving market dynamics underscore the importance of strategic decision-making in energy procurement, ultimately contributing to a more sustainable and economically viable future for all.