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Understanding the Drop in Energy Prices: A Boon for UK Businesses

The Unprecedented Drop in Energy Prices

Graph showing drop in energy prices

Did you know that the energy market has seen a significant drop in energy prices in recent months? If you're a business owner in the UK, this is news you can't afford to ignore.

The Factors Behind the Drop in Energy Prices

Several factors have contributed to this drop in energy prices. The primary reason for the drop is the UK's healthy amount of energy storage. Contrary to the predictions made in late 2022, the UK has managed to maintain a robust energy reserve. This, coupled with the end of winter and the onset of milder temperatures, even though this summer is colder than usual, has led to a decrease in energy demand, contributing to the drop in energy prices.

energy storage in the UK

Answering Your Questions

As a business owner, you might be asking: "Have energy prices dropped? How much is electricity now? Can I get out of my contract?" The answer is yes, energy prices have dropped significantly. In the current market, prices are around 25 - 30 p/kWh (depending on meter type and usage), which is significantly cheaper than rates agreed upon in early 2023 or late 2022.

You may be wondering if you can leave your current contract early to take advantage of the drop in energy prices. It's possible, but it's important to note that early exit will likely come with fees. Typically, the supplier will ask you to pay for the remaining part of the contract that was due to them. However, we have seen instances in which a nominal fee was due to leave early. The best thing to do is to ask your current supplier 'how much' it would cost to leave your contract early. Then you can make an informed decision about whether it's financially viable to do so.

How the Drop in Energy Prices Benefits Your Business

This drop in energy prices presents a unique opportunity for businesses. If your business signed up for energy contracts in late 2022 or early 2023, you're likely paying much higher rates than what's currently available in the market. This means that by renegotiating your energy contracts or switching suppliers, your business could potentially make substantial savings.

Diagram of energy contract renegotiation process

How The Smart Energy Company Can Help Amidst the Drop in Energy Prices

At The Smart Energy Company, we understand that navigating the energy market can be complex. That's why we're here to help. We can provide you with a comprehensive quote from over 20 suppliers, helping you find the best rates available.

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Looking Ahead: What to Expect in the Coming Month

However, it's important to note that the energy market is always changing. In the coming month, we anticipate potential increases in gas and power prices due to planned outages at major gas fields and facilities. These outages could lead to a temporary reduction in gas supply, which could impact the levels of gas in storage and potentially reverse the recent drop in energy prices.

As a result, it's crucial for businesses to stay informed about these changes. At The Smart Energy Company, we provide daily, weekly, and monthly market updates to help you stay ahead of the curve. Sign up for our updates here to ensure you're always in the know.

What Can I Save?

With the drop in energy prices, your savings could be substantial (as much as 80%). Get in touch with us today to see how much you could save on your next renewals.

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Have More Questions?

  • Is it possible to change multiple business utilities at the same time?
    Our switching service allows you to switch multiple utilities simultaneously. We have successfully assisted multiple businesses in the UK by helping them save on various services such as energy and water with savings within 2023 already over the £2 Million mark.
  • How much can I save on my business utility bills?
    The amount you can save on your business utility bills will depend on various factors such as your current usage, the rates offered by different providers, and the specific deals available in your location. However, our switching service is designed to help you find the best deals and save as much as possible. By comparing multiple suppliers and negotiating competitive rates, we aim to maximise your potential savings. Get in touch with us to discuss your specific needs and get personalised information on potential cost savings for your business utility bills.
  • How does switching business utilities work?
    Switching business utilities involves a straightforward process. Here's a general overview of how it works: Evaluation: Start by assessing your current utility bills and usage patterns. This will give you an idea of your current costs and help identify areas where savings can be made. Comparison: Use a switching service like ours to compare different utility providers in your area. We provide you with quotes from multiple suppliers, allowing you to compare prices, contract terms, and services offered. Selection: Based on the comparison results, choose the utility provider that best meets your needs and budget. Consider factors such as price, customer reviews, contract terms, and any additional services or benefits offered. Contract Negotiation: Once you've chosen a new provider, our team can help negotiate the contract terms and rates on your behalf. Switching Process: The switching service will coordinate the transition with your current supplier and the new provider. This may involve submitting termination notices, arranging meter readings, and scheduling the activation of new services. Enjoy the Savings: After the switch, you'll start receiving services from your new provider, typically at the agreed-upon rates. You will notice savings on your utility bills, providing you with cost advantages for your business. Remember, the exact process may vary depending on the type of utility you are switching, but our switching service aims to simplify the process and assist you at every step.
  • Who are the cheapest business utility providers?
    As market conditions and prices fluctuate regularly, it's challenging to provide an up-to-date and definitive list of the cheapest business utility providers. The prices we provide you are valid and available on the day of the quote and will provide most current and competitive deals available. Our switching service helps you compare prices and offers from multiple suppliers, ensuring you have the most accurate and relevant information to make an informed decision about your business utility provider.
  • What is energy procurement?
    Energy procurement is the process of sourcing, negotiating, and securing energy contracts to meet the specific needs of a business. It involves analysing energy consumption patterns, understanding market trends, and negotiating with suppliers to obtain the best possible rates and contract terms.
  • Why is energy procurement important for my business?
    Energy procurement ensures that your business secures energy contracts that are both cost-effective and aligned with your operational needs. Proper energy procurement can lead to significant cost savings, budget predictability, and reduced risks associated with volatile energy markets.
  • How does The Smart Energy Company help with energy procurement?
    We specialise in analysing your energy consumption, understanding your specific needs, and leveraging our relationships with over 20 suppliers to negotiate the best possible contracts on your behalf. Our team ensures you get optimal rates, flexible terms, and contracts that align with your business goals.
  • How do you ensure I get the best energy rates?
    Our team continuously monitors the energy market, staying updated with trends, price fluctuations, and supplier offerings. Coupled with our in-depth analysis of your energy needs and consumption patterns, we negotiate with suppliers to secure rates that are both competitive and suited to your business.
  • Are there any hidden fees associated with your energy procurement services?
    Transparency is a core value at The Smart Energy Company. We provide a clear breakdown of any commission we earn as a company when you come to agree any new energy contract. This is typically included as an uplift in your unit rate and paid to us by the supplier you chose to go to. Our primary goal is to secure the best energy deals for you, with no hidden costs.
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Unlock the Potential of
Your Business Energy

At The Smart Energy Company, we're committed to offering tailored solutions that fit your energy needs perfectly. By staying ahead of market trends, we ensure you're always equipped with the most efficient and sustainable energy options. We take pride in our client-driven approach, where your feedback shapes our continuous improvement.


Why not schedule a complimentary consultation with one of our energy experts today? Let's find the perfect energy solution tailored to your business.

See What Our Clients Say About Us


Very helpful, quick expert advice. We have been using Smart Energy for a while.


Ian Hughes

Operation Manager

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