How UK Small Businesses Can Benefit from New Energy Support in 2025
As energy prices remain high in 2025, the UK government has introduced new measures aimed at reducing energy bills for small and medium-sized enterprises (SMEs). With reforms to green levies and ongoing market volatility, now is the time for small businesses to act. This blog outlines the support available, explains market trends, and shows how you can save by comparing energy suppliers.
Government Support: Levy Reductions and Industrial Subsidies
In June 2025, the UK government announced cuts to green levies on more than 7,000 businesses, aiming to offset rising energy costs and support competitiveness in sectors like manufacturing, ceramics, and glass theguardian.com.
Simultaneously, a £2 billion British Industrial Competitiveness Scheme, launching in 2027, will reduce energy costs by up to 25% for qualifying firms by exempting them from certain green levies ft.com. Though the primary beneficiaries are energy-intensive industries, many SMEs stand to benefit indirectly through reduced supplier costs and improved supply chain efficiency.
What It Means for Small Businesses
While these measures focus on larger operators, small businesses—including retailers, offices, and hospitality—can benefit in several ways:
Lower standing charges and unit rates: With green levies reduced, suppliers may pass on savings to commercial customers.
More competitive quotes: As bigger users lock in lower costs, brokers and suppliers adjust pricing models across their portfolios.
Better switching opportunities: Now is an ideal time to compare suppliers and negotiate improved terms before the next wave of price adjustments.
Why Compare Energy Suppliers Now
A proactive approach to comparing energy suppliers can deliver financial and operational benefits:
- Access new levy-included cost reductions through updated quotes.
- Lock in competitive fixed rates before anticipated mid-year price hikes.
- Evaluate green and flexible tariffs, which are now more accessible and competitively priced.
- Understand contract terms clearly, including exit fees, standing charges, and energy performance clauses.
- Tap into broker expertise to navigate government support schemes, market risks, and tariffs tailored for small businesses.
- Energy brokers can help aggregate supplier offers and negotiate better rates on your behalf.
Practical Steps for SMEs
To take advantage of market conditions and government reforms, follow these best practices:
- Request quotes from multiple suppliers, covering both gas and electricity. A formal electricity and gas plans comparison can uncover better rates.
- Consider bundling utilities under dual-fuel plans for streamlined billing and potential cost savings.
- Explore green energy tariffs, which now often match conventional tariffs in price but provide ESG benefits.
- Fix pricing via contracts of 12–24 months to remove exposure to short-term volatility.
- Take basic efficiency actions—such as energy audits and smart meter readings—to ensure quoted rates align with actual usage.
Pro Energy Easy Price Comparison
The combination of UK government green levy cuts and subsidy schemes offers new opportunities for small businesses looking to control energy costs. Yet, market volatility persists, and electricity and gas rates are projected to climb this year.
Now is the time to act. By comparing energy suppliers, locking in fixed rates, and investing in efficiency, your business can benefit from new policies and avoid future price shocks. An energy broker can simplify this process—getting you the best deal with minimal effort.