Is there a business energy price cap?

The energy price cap was introduced by the Government in 2019 to help make energy bills more affordable for millions of households. It limits the maximum amount that energy suppliers can charge for gas and electricity, protecting consumers on standard variable tariffs from the high energy prices and market volatility we’ve seen in recent years. The cap is reviewed every three months with the latest update announcing that between 1 April and 30 June 2025, the energy price cap will be set at £1,849 per year for a typical household. 

So, is there a business energy price cap?

There is no energy price cap for businesses in the UK. The energy price cap set by Ofgem applies only to domestic customers. However, businesses still benefit from protections like market competition and regulatory safeguards. The Government previously provided temporary schemes to support businesses across various sizes and sectors.

• Energy Bill Relief Scheme (EBRS)

The EBRS was launched to support businesses for six months from 1 October 2022 to 31 March 2023, when energy bills first started rising. It was available to all businesses, charities and public sector organisations on new and existing fixed price contracts, as well as Deemed, Out-of-Contract and Standard Variable tariffs, and flexible contracts.

• The Energy Bills Discount Scheme (EBDS)

Following the EBRS, the EBDS was launched on the 1 April 2023 by the Government to provide continued support for businesses with the high cost of energy. Unlike an energy price cap, the 12-month scheme gave businesses a per-unit discount on the wholesale gas and electricity part of your bill. This discount was applied automatically and there was no limit (cap) to how much you could save.

What can businesses do to reduce energy bills going forward?

Since the EBDS ended on 31 March 2024, no new schemes have been announced. Businesses now face a challenging energy landscape that is the new normal. However, there are several steps and tools that businesses can use to help reduce costs and support their net zero plans.

1. Get better control over your business energy

We offer a variety of useful tools that give you the power to control your energy use and spending. For example, smart meters are the clever way to measure your business energy use. They let you see how much energy your business uses and what it's costing you – and you can request a smart meter upgrade at no extra cost.

If you have a smart meter that's already up and running, you'll then be able to request your smart meter data and view it on our free platform, Energy360™ DataView. There you can gain valuable insights into your energy consumption patterns, identify trends and understand your out-of-hours energy use. Armed with that knowledge, your business can make more informed decisions on how to cut carbon and costs. Energy 360 isn’t available to British Gas Lite customers. If you’re a Lite customer and would like access to your smart meter data please get in touch.

2. Review your energy contract

It’s important to regularly review your energy strategy to ensure it remains effective and that your energy contract meets your needs. If your business is concerned about rising energy costs and market unpredictability, fixing your prices can provide the stability you need. Even if you're not seeking a new energy deal right now, it's beneficial to understand your options.

3. Get help with energy efficiency

If you’d like help managing your business energy and improving energy efficiency, check out our business energy-saving advice, tools and tips.  You’ll find everything from how to reduce consumption to energy-saving advice by sector.

4. Help with paying your energy bill

We understand that rising energy costs are concerning, and we are committed to support all our customers. If you think your business would benefit from additional support, the important thing to do is reach out to your energy supplier

We're here to help

While the energy price cap protects households, businesses in the UK face a challenging energy landscape without a similar cap.

We offer products and pricing tailored to your business's unique needs. Whether you need flexible start and end dates, have specific consumption patterns, or require a smart meter upgrade, British Gas is your trusted energy expert, dedicated to helping your business succeed.

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