What the 2% Energy Price Cap Rise Means for Your Business

Ofgem has announced a 2% rise in the UK household energy price cap this October. While the cap technically applies to households, many business owners are already asking the same question:

“What does this mean for my business energy bills?”

Even though businesses aren’t directly covered by the domestic energy price cap, there are knock-on effects you can’t afford to ignore. Let’s break it down.

Why the 2% Price Cap Rise Matters for Businesses

1. Consumer Spending Drops

   When households pay more for energy, they naturally cut back elsewhere. For sectors like retail, hospitality, and leisure, that means fewer customers walking through the door and less money being spent.

2. Wholesale Prices Push Business Costs Up

   The domestic price cap is based on wholesale energy costs, the same market that affects your business contracts. A rise in the cap usually signals an upward trend that can hit SMEs renewing their supply agreements.

3. Variable Tariffs Get Riskier

   If your business is on a variable energy tariff, even a small shift in the market can push your monthly bills higher. With volatility still very much part of the energy market, relying on short-term contracts is a gamble.

4. Margins Under Pressure

   For energy-intensive industries like manufacturing, agriculture, or logistics, even minor price movements eat into profits. The 2% cap rise is a clear warning sign that costs are creeping back up.

   
   

The Bigger Picture: Market Instability

While a 2% energy price rise might not sound dramatic, it’s a reminder that the UK energy market is still unstable. Businesses face a double challenge:

• Managing rising operating costs.

• Serving customers who are also feeling the squeeze at home.

That’s why planning ahead is more important than ever.

How PPS For Business Can Help

At PPS For Business, we work with over 100 suppliers across the UK to make sure you don’t get caught out by market changes.

Here’s what we do differently:

• Lock in contracts early – We can renew your energy deal up to 12 months in advance, securing today’s rates before costs climb further.

• No hidden fees – You’ll never pay us directly. We earn from suppliers, not from you.

• Tailored deals – Whether you’re running a family shop, a farm, or a nationwide chain, we’ll match your contract to your usage and budget.

• Hands-on support – If you’re in the South West, we’ll even pay you a personal visit. Wherever you are in the UK, we’re just a call away.

  
  

Final Word

The 2% rise in the UK energy price cap is another warning sign that businesses need to take control of their energy costs. Standing charges are still high, wholesale prices are unpredictable, and leaving things until the last minute can be costly.

The good news? You don’t have to navigate this alone.

📞 Speak to the PPS For Business team today and see how much you could save before the market shifts again.

Speak To The Team