Headline Statistics: UK Business Energy 2026

All figures from Ofgem’s Non-Domestic Consumer Research 2025, published May 2026. Survey of 1,002 UK businesses across England, Scotland and Wales.

Source: Ofgem, Businesses and the energy sector: 2025. Published May 2026.

1. Supplier Satisfaction: Improving But Still Far From Universal

Customer satisfaction improved in 2025, with 68% of businesses satisfied with the service from their supplier, up from 62% in 2024.

That is the highest figure since Ofgem began tracking this metric and represents genuine progress from the dissatisfaction levels seen during the 2022-23 energy crisis. Ofgem

But the headline masks a more complex picture. Only 57% of businesses feel they are treated fairly by their supplier, a figure that has barely moved in three years.

Those who did not feel fairly treated experienced issues with unexpected charges, unclear tariff changes and delays in resolving issues or poor customer service. Ofgem

Satisfaction by business size:

Larger businesses consistently report higher satisfaction. Smaller businesses, particularly sole traders and micro-businesses, have lower satisfaction and are more likely to feel they cannot influence outcomes when things go wrong.

This reflects the market reality: large businesses have account managers, dedicated contacts and commercial leverage. Small businesses often deal with call centres and automated billing systems with no named point of contact.

Kilowatt Energy estimates based on Ofgem size-band data. Exact breakdowns vary by survey wave.

What this means for your business: Satisfaction with your supplier’s service is not the same as being on the right tariff.

A business can have a perfectly pleasant relationship with a supplier and still be on an out-of-contract rate paying 40-60% above the best available market rate.

How you feel about your supplier and what you are actually paying are two different questions, and only the second one determines your bottom line.

2. Energy Affordability: 27% Still Struggling

In 2025, 70% of businesses indicated they are keeping up with their bills with no difficulties, whereas 19% reported keeping up with bills although they struggle from time to time, whilst 6% reported constantly struggling with bills. Ofgem

The improvement from 2023, when 39% of businesses were struggling, is substantial. But the 27% still experiencing some form of difficulty represents hundreds of thousands of UK businesses paying energy bills that are stretching their finances.

Affordability breakdown: trend over 3 years:

Who is most likely to be struggling:
Sole traders and micro businesses are more likely to struggle with keeping up with bills than larger-sized businesses.

Hospitality and food service businesses, which have the highest energy intensity relative to their size, are disproportionately represented in the struggling category. Ofgem

The most common reason businesses struggle with energy bills that Ofgem’s data does not fully capture:

In our experience reviewing energy contracts across the East Midlands, the majority of businesses that describe their bills as unmanageable are not simply facing high market rates; they are on the wrong contract type for their situation.

Out-of-contract rates, contracts that rolled automatically without review, and VAT applied at 20% when 5% should apply are consistently the three most common causes of unnecessarily high bills.

Our forensic energy audit service reviews every line of your bills to identify these issues. We regularly identify overcharges averaging £1,847 per business, often going back two or more years.

3. Switching: 29% Switched, But 71% Did Not

Nearly a third of businesses (29%) reported switching supplier within the last year; 75% of these said that they found the switching process easy. Ofgem

That means 71% of UK businesses did not switch supplier in the last 12 months.

This is the central challenge of the business energy market: most businesses that would benefit from switching do not do it, primarily because they assume it is complicated, time-consuming or risky.

The data consistently says otherwise.

Switching rates: trend:

Why 71% of businesses are not switching:

Ofgem’s qualitative follow-up interviews identify the main barriers consistently across survey years.

Businesses that did not switch most commonly cited: assuming their current deal was competitive without checking, believing switching was complicated or would disrupt supply, not knowing their contract end date, and assuming there was no significant saving available.

Every one of these barriers is based on a misconception. Supply is never interrupted during a business energy switch. The process completes within 28 days from contract signing. Brokers manage the entire process.

And the savings available is almost always significant for businesses that have not actively compared in the last 12 months.

Switching volume: live market data May 2026:

In May 2026, the total number of switches decreased by an average of 1.7% across both fuels compared with April 2026. Electricity switches decreased by 2.4% from 243,754 in April 2026 to 237,988 in May 2026 with gas switches also decreasing by nearly 0.8% from 183,180 to 181,733. Ofgem

The July 2026 price cap rise of 13%, the largest since 2022, is expected to drive a significant increase in switching activity in Q3 2026 as businesses seek to fix rates below where the market is heading.

4. Energy Broker Use: Growing, But Mostly Misunderstood

Of those surveyed who used an energy broker to switch (33%), nearly three-quarters (73%) reported high levels of satisfaction with the energy broker’s services; however, as in 2023, many of these businesses believed they were not charged for the broker’s services (73%). Ofgem

By 2025, broker usage had risen further to 35% of businesses, with satisfaction remaining at 72%. The trend is clear: more businesses are using brokers and the overwhelming majority who do are satisfied.

But the persistent finding that 73% of businesses believe broker services are free reveals a significant transparency problem in the market.

Broker services are not free; brokers are paid a commission by the energy supplier, which is built into your unit rate.

The misconception that brokerage is free is not innocent; it means most businesses never ask what their broker is earning from their deal.

Broker use and satisfaction, trend:

The transparency gap, what every business should ask:

The 73% of businesses that believe their broker service is free have never asked how their broker is paid.

This matters because undisclosed or poorly disclosed commission is the primary mechanism through which businesses end up on deals that are good for the broker but not necessarily the best available for them.

Kilowatt Energy discloses our commission structure before any contract is signed. We tell you what we earn on every deal we recommend.

This is not industry standard practice; it is what the TPI Code of Practice requires of its registered members and what the most reputable brokers do as a matter of course.

If your current broker has never discussed their commission with you, that is worth questioning at your next renewal.

The 65% of businesses not using a broker:

For most SMEs, comparing business energy without a broker means either accepting the renewal quote from your existing supplier (the most expensive option in most cases) or spending several hours contacting suppliers individually for comparable quotes.

A broker with access to 30+ suppliers accesses the same quotes simultaneously in minutes. The data on satisfaction: 72% are happy with broker outcomes suggests most businesses that try a broker are glad they did.

5. The Net Zero Shift: The Most Encouraging Statistic in the Data

The net zero findings in Ofgem’s 2025 research show the most significant year-on-year movement of any metric in the survey.

Barriers to decarbonisation, dramatic shift:

The shift from 24% reporting no barriers in 2023 to 41% in 2025 is the single most significant movement across the entire dataset.

The simultaneous drop in cost cited as a barrier from 32% to 15% suggests two things are happening at once: green energy options are becoming genuinely more affordable, and businesses are becoming more familiar with the real cost of transition versus the assumed cost.

What UK businesses are doing on net zero:

Estimates based on Ofgem qualitative research and BEIS energy efficiency survey data 2025.

The ESOS angle:

Energy Savings Opportunity Scheme (ESOS) Phase 4 compliance deadline is December 2026.

Large businesses those with 250 or more employees or £50 million turnover or more must complete their Phase 4 assessment by that date or face penalties of up to £50,000 plus £500 per day.

For businesses in scope, the deadline is now 4 months away.

Kilowatt Energy provides ESOS advisory support alongside our energy procurement and net zero consultancy services. If your business is in scope and has not yet started its Phase 4 assessment, contact us immediately.

6. What Businesses Are Most Unhappy About

Ofgem’s qualitative follow-up interviews in late 2025 identified the specific issues driving dissatisfaction among the 32% of businesses that are not satisfied or do not feel treated fairly.

Based on Ofgem non-domestic qualitative research 2025.

Unexpected charges and billing errors remain the most consistently cited complaint, and this is where forensic auditing adds the most immediate value. Billing errors in business energy are far more common than the industry acknowledges.

In our forensic audits, we identify overcharges in the majority of bills we review, averaging £1,847 per business, covering incorrect VAT rates, DUoS misclassifications, erroneous meter reads and charges during disputed periods.

7. The Numbers Behind the Numbers: What Ofgem’s Survey Misses

Ofgem’s research is valuable and rigorous. But there are significant aspects of the business energy market that even comprehensive survey data cannot fully capture.

The out-of-contract rate problem is bigger than reported:

The survey asks businesses whether they switched in the last 12 months. It does not directly ask how many are currently on an out-of-contract or deemed rate, one of the most expensive situations a business can be in.

Based on Ofgem’s retail market indicators and industry data, the estimated proportion of non-domestic supply points currently on out-of-contract or deemed rates is significantly higher than switching data suggests.

Kilowatt Energy estimate based on Ofgem retail market data, switching volumes and non-domestic survey findings.

If the 20-25% out-of-contract estimate is accurate, that represents approximately 1.5 million non-domestic supply points in the UK paying rates 40-60% above what a competitive fixed contract would cost.

For a business using 30,000 kWh of electricity per year, that translates to overpayments of £2,000-£4,000 annually, simply because no one has reviewed the contract.

The broker commission transparency gap remains unchanged:

Three years of data showing 73% of businesses believe brokerage is free suggests this is not improving without structural change.

Ofgem has consulted on mandatory commission disclosure requirements for TPIs multiple times. Until those requirements are implemented, the most effective protection for businesses is to ask directly, before signing anything, what commission your broker earns on the deal they are recommending.

8. How UK Business Energy Switching Rates Compare Internationally

UK business energy switching rates sit in the middle of the range for liberalised European energy markets.

Comparative estimates based on ACER market monitoring and European Commission energy market reports 2025.

The UK’s 29% annual switching rate reflects a reasonably active market. But the comparison with the Netherlands, where broker penetration is higher and switching is more normalised, suggests there is significant room for improvement in market engagement, particularly among smaller businesses.

What the 2026 Statistics Mean for Your Business: Right Now

Ofgem’s data is useful for understanding the market. But it is most useful when it prompts action. Here is what each headline statistic means in practical terms:

FAQ: UK Business Energy Statistics 2026

Q: Where does the Ofgem business energy statistics data come from?
Ofgem commissions an annual non-domestic consumer research survey through IFF Research. The 2025 report, published in May 2026, is based on telephone interviews with 1,002 UK businesses across England, Scotland and Wales conducted between July and August 2025, with 30 qualitative follow-up interviews conducted in November and December 2025. It is the most comprehensive annual snapshot of UK business energy market behaviour available.

Q: Why do only 29% of UK businesses switch energy supplier each year?
Ofgem’s qualitative research consistently identifies the same barriers: businesses assume their current deal is competitive without checking, fear that switching will disrupt supply (it does not), do not know their contract end date, or believe the process is too complicated. All of these are misconceptions. The 75% of businesses that did switch in 2025 found the process easy; the anticipation is worse than the reality.

Q: Is using a business energy broker worth it?
According to Ofgem’s 2025 data, 72% of businesses that used a broker were satisfied with the outcome, the highest satisfaction rate of any market participant. Brokers are particularly valuable for businesses with multiple meters, complex consumption profiles, or limited time to manage procurement directly. The key caveat is commission transparency; always ask your broker to disclose what they earn from any deal they recommend.

Q: What does it mean if my energy broker says their service is free?
It means they have not been fully transparent with you. Ofgem’s data shows 73% of businesses using brokers believe the service is free — but broker services are funded by commission paid by the energy supplier, which is built into your unit rate. This is not inherently wrong; it is how the market works, but undisclosed commission can lead to deals that serve the broker’s interest over yours. Ask for disclosure before signing.

Q: What is the ESOS Phase 4 deadline and does it affect my business?
ESOS Phase 4 compliance applies to large undertakings, businesses with 250 or more employees, or annual turnover exceeding €50 million and a balance sheet exceeding €43 million. If your business or its corporate group meets these thresholds, your Phase 4 assessment must be completed and notified to the Environment Agency by 5 December 2026. Non-compliance can result in fines of up to £50,000 plus £500 per day. Contact Kilowatt Energy for ESOS advisory support.

Q: How do I know if I am on an out-of-contract energy rate?
Call your supplier and ask whether your current contract is still within its fixed term, and if so, what the end date is. If your contract has expired and you have not agreed a new one, you are on an out-of-contract or deemed rate typically 40-60% above the best available fixed rates. Our guide to out-of-contract business energy explains what to do. Contact us for a free comparison across 30+ suppliers to get back onto a competitive fixed rate.

Q: Is business energy in the UK getting cheaper?
Overall, business energy costs remain significantly elevated compared to pre-2022 levels. The July 2026 price cap rise of 13%, the largest quarterly increase since 2022, reflects continued wholesale market pressure, particularly in gas. While rates are lower than the 2022-23 peak, businesses on out-of-contract rates or contracts signed during the peak are still paying significantly above current competitive market rates. Read our commercial energy comparison guide for current rate benchmarks.