UK businesses are calling on the government to introduce a business energy price cap after nearly four in five firms reported steep increases in energy bills over the past year, new research reveals.
The findings, compiled by energy broker Utility Bidder, show that businesses across England, Scotland and Wales are facing mounting pressure from unregulated energy markets, with many owners calling for urgent government intervention. Unlike households, commercial users have no protection from price caps, leaving them exposed to volatile and often unaffordable rates.
In response, Utility Bidder has launched an official parliamentary petition urging ministers to implement a price cap and provide direct support for small and medium-sized enterprises (SMEs).
“Nearly 80% of businesses have seen their energy bills increase in just the past year, and yet there’s still no cap in place to protect them,” said Chris Shaw, CEO of Utility Bidder.
“For too long, British businesses — especially small and independent ones — have been left exposed to unstable energy prices without the safety nets that domestic consumers have.”
The situation is dire in regions like the North East, where 100% of surveyed business owners reported an increase in energy costs, followed closely by 92.9% in the West Midlands, 87.5% in Wales, and 84.6% in Scotland.
The survey, which included over 500 business owners and their carers, found that:
80.6% said energy prices are one of the biggest financial challenges they face.
22% now pay more than £6,000 annually on energy, compared to just 14.1% who pay under £1,000.
Female-owned businesses are less likely to receive government support, with 47.7% saying they receive none — compared to 28.3% of men.
The cost of energy is also hitting smaller and lower-income businesses hardest, with two-thirds of businesses earning under £10,000 paying between £1,000 and £1,500 annually, despite operating from modest premises.
According to Shaw, many businesses are tightening budgets, delaying investments, or even considering closure as a result of unsustainable energy bills. He warned that unless the government steps in, the UK risks widespread economic damage.
“We’ve launched an official Parliament petition to help make this happen. If you believe businesses deserve fairer treatment, we’d urge you to add your name, share the petition, and show your support. Together, we can send a clear message that this can’t wait.”
Regional disparities and call for reform
Energy costs are disproportionately higher in some areas. In Scotland, 38.5% of businesses pay more than £6,000 per year — the highest in the UK — followed by 33.3% in the North East and 29.6% in London. Meanwhile, 37.5% of businesses in the East Midlands spend less than £1,000 annually, suggesting stark regional inequalities.
The research also found that:
61.2% of business owners want immediate implementation of an energy price cap or tougher regulation.
52.9% would like direct government subsidies or grants.
47.6% support tax breaks or energy efficiency incentives.
40.5% want long-term investment in renewables, rather than short-term fixes.
The broader context includes the government’s legally binding Net Zero commitment by 2050, which will require UK businesses to shift away from fossil fuels. However, some business owners voiced frustration, arguing they are being burdened with costs they can’t afford without adequate support.
A business owner from the South East, whose bills have risen to £2,000, urged the government to “stop Net Zero”, highlighting the growing tension between climate targets and economic reality for small firms.
Government support not enough, businesses say
Only 18.1% of business owners said the support they’re receiving is making a meaningful difference. In the East Midlands, almost two-thirds (62.5%) said they receive no financial help. Even in the best-performing regions, such as the North East, just a third of businesses feel adequately supported.
With unemployment rising, job postings stagnating, and the broader economy still fragile, business groups say now is the time for the government to step up.
Utility Bidder’s petition calls for the government to level the playing field between domestic and commercial energy users by capping business energy prices and offering targeted support to protect SMEs.
As Shaw put it: “British businesses are the backbone of our economy. It’s time to give them the same protections and stability that households receive.”
To view or sign the petition, visit: UK Parliament Petitions Site
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Petition launched as 4 in 5 UK businesses face soaring energy bills without price cap