Anthony Ainsworth is the COO of npower Business Solutions, a CBI member, and this article represents his views. For the CBI's view on the issues mentioned, please check out our latest reports.
High electricity prices have become a serious test of UK competitiveness. In the second half of 2025, large UK businesses paid around 130% more for electricity than the median across the EU14, which includes major economies such as France, Germany and Italy. The gap with Europe has widened sharply since 2022.
A significant reason for this gap is the burden of non-commodity costs: the network, system and policy charges added to the wholesale cost of electricity. Policy costs in particular have moved in the opposite direction to Europe since around 2021, falling across the EU14 while increasing in the UK. Data from our Energy Cost Calculator projects that UK non-commodity costs could rise by an average of around 84% by 2030. A key driver of the UK’s competitive disadvantage therefore lies outside businesses’ direct control and is projected to grow.
Government and industry must work together
Businesses and government must work hand-in-hand to ensure that the costs of modernising our energy system do not weaken our ability to invest and grow. That is why I am proud to contribute to the Confederation of British Industry (CBI) and Energy UK’s Cutting Business Energy Costs Taskforce, whose blueprint includes moving certain non-commodity costs off invoices.
Good policymaking depends on evidence from the businesses affected. Each year, our Business Energy Tracker gauges the views of large energy users on the energy market and government policy, and examines how costs influence confidence and investment. The forthcoming 2026 report will be the fifth edition, giving us a valuable five-year view of how business sentiment has changed.
Businesses can take greater control
While government and industry work towards longer-term reform, businesses can act now to reduce their exposure to rising costs. For example, Market-wide Half-Hourly Settlement (MHHS) is changing how electricity use is calculated and settled, giving businesses more accurate, half-hourly usage data. Organisations should ensure they can access and interpret this information, using it to refine operating schedules and inform future investment.
Businesses should also embrace the government’s ‘rooftop revolution’. Although rooftop solar is often associated with homes, commercial sites are equally well suited, combining large roofs with substantial daytime demand. Using power where it is generated reduces grid purchases, while an export Power Purchase Agreement (PPA) can provide a market for surplus electricity.
Businesses should also explore opportunities to use energy more flexibly. Shifting suitable demand away from higher-cost periods can reduce certain charges, while participating in flexibility schemes can generate revenue when businesses adjust their consumption to support the grid.
None of these steps removes the need for wider policy reform on energy prices, and each requires a credible business case. The right combination can still help organisations manage their exposure while wider changes progress.
How, then, are businesses across the UK responding to these pressures and preparing for a changing energy landscape? Our 2026 Business Energy Tracker will reveal the priorities and challenges shaping their energy decisions and what they need from future policy. Download the report here.
npower Business Solutions are a proud Corporate Partner of this year's CBI Annual Conference. Anthony Ainsworth will join us at this year's Conference on 23 November as part of the panel Unlocking the power of doing business.
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