Energy price cap rising: What this means for small businesses

Energy price cap rising this October: Why small businesses should take notice

Yesterday's announcement from Ofgem confirms that the UK energy price cap will rise by 4% from 1 October, increasing the typical household energy bill by around £60 per year. The rise is being driven largely by higher wholesale gas prices and ongoing volatility in global energy markets.

While the price cap increase is aimed at household energy customers, the wider economic impact is something businesses should keep an eye on. When household bills rise, consumers typically have less disposable income to spend elsewhere. For many small businesses, particularly those operating in retail, hospitality and consumer services, this can mean customers becoming more cautious with their spending. Combined with ongoing business cost pressures, higher energy costs can contribute to a more challenging trading environment in the months ahead.

Many small business owners will feel the impact at home through higher household bills, but the same market conditions influencing residential prices can also affect business energy costs. Unlike domestic customers, business energy contracts aren't protected by a price cap, making it even more important to understand your options and ensure you're on the right tariff.

Whether you're approaching a contract renewal, currently on a variable tariff or simply looking to get more certainty over your energy costs, now is a good time to review your energy strategy.

Join our free Lunch & Learn with Enterprise Nation!

As part of our ongoing work with Enterprise Nation, we're hosting a free Lunch & Learn session on the 3rd September 2026 designed to help small businesses make sense of today's energy market:

Fixed, variable or something new? How to choose the right energy tariff

With energy costs continuing to fluctuate, choosing the right tariff can make a significant difference to your business. During this practical session, we'll explore the different contract options available, discuss current market conditions and share tips to help you make more informed energy decisions.

Whether you're coming up for renewal, considering a switch or simply want to understand what's available, this session will provide valuable insights to help you find the right fit for your business.

👉 Reserve your place here:

https://www.enterprisenation.com/find-something/lunch-and-learn-fixed-variable-or-something-new-how-to-choose-the-right-energy-tariff/

In partnership with Enterprise Nation, we're helping small businesses build confidence in their energy decisions and take greater control of their costs during an ever-changing market.