The UK energy market continues to face uncertainty as wholesale prices fluctuate and the government introduces new measures aimed at controlling energy costs. November has already brought important developments, including proposed energy industry reforms and further details of government support for businesses. Here's what commercial energy customers need to know.

1. Wholesale Electricity and Gas Prices Remain Volatile

UK wholesale electricity and gas prices fell during the opening days of November, following increased volatility towards the end of October.

By 3 November, winter wholesale gas prices had fallen approximately 12% over two trading days, while winter electricity prices had dropped by almost 10%.

However, uncertainty remains due to international geopolitical developments, Norwegian gas supply disruptions and changing weather forecasts. Lower wind generation could also increase reliance on gas-fired power stations, potentially putting further pressure on electricity prices.

**For businesses, this means:**
- Wholesale prices can change quickly in response to international events.
- Short-term reductions do not necessarily translate into cheaper supplier quotations.
- Businesses approaching renewal should monitor the market and compare available contract options.

2. Autumn Budget Brings Changes to Business Energy Costs

The Autumn Budget on 28 October 2026 introduced several measures that could affect commercial electricity and gas customers.

The most relevant announcements include:

**0% VAT on eligible electricity:** The temporary zero-rate VAT arrangement has been extended until 1 July 2027. Eligibility is limited to qualifying electricity supplies, including certain low-consumption businesses, charities and mixed-use premises. Most standard commercial electricity supplies will continue to attract 20% VAT.
**Gas Shipper Obligation cancelled:** The planned additional charge on business gas bills will no longer be introduced. Future hydrogen projects will instead be funded through general taxation.
**Climate Change Levy:** The main electricity and LPG rates will be frozen from April 2028 at their 2027/28 levels, although gas and solid fuel rates will increase with inflation.
**Future policy cost controls:** The government has committed to introducing a Cost Control Framework in 2027, with no additional energy policy costs added to bills in the meantime unless they reduce costs or are essential for security of supply.

These changes provide some welcome certainty for businesses, although the impact will depend on their energy usage, VAT eligibility and applicable charges.

3. Energy Independence Bill Proposes Major Industry Reforms

Introduced on 4 November 2026, the Energy Independence Bill proposes significant changes to the UK's energy industry.

One of the most important developments for commercial customers is the proposal to bring energy brokers under Ofgem regulation, addressing concerns around hidden commissions and misleading sales practices.

Other proposed measures include:

Stronger Ofgem enforcement powers against energy companies.
Greater transparency around broker commissions.
Improved protections for energy customers.
Reforms intended to accelerate electricity grid connections.

The government estimates that regulating energy brokers could save businesses approximately £100 million annually.

The Bill must still progress through Parliament before its proposed measures become law.

4. Further Support for Energy-Intensive Manufacturers

The government has confirmed additional support through the British Industrial Competitiveness Scheme (BICS), aimed at reducing electricity costs for eligible UK manufacturers.

Around 10,000 energy-intensive manufacturing businesses could receive an electricity discount of approximately 20–25% from April 2027.

Importantly, the scheme will also include backdated support covering the 2026–27 financial year.

Eligible businesses should review the scheme's requirements to establish whether they qualify and how the support could affect their future electricity expenditure.

5. What Should Businesses Expect Going Forward?

With wholesale markets remaining unpredictable and further regulatory changes approaching, businesses should take a proactive approach to managing their energy contracts.

We recommend:

Reviewing upcoming electricity and gas renewal dates.
Comparing quotations from multiple suppliers.
Checking standing charges alongside unit rates.
Ensuring annual consumption figures are accurate.
Investigating eligibility for government energy support.
Considering contract duration and the level of price certainty required.

It is important to remember that business energy contracts are not protected by the domestic Ofgem price cap. Reviewing available options before renewal can therefore be particularly important.

How Energy Geeks Can Help

At Energy Geeks, we help businesses across the UK source competitive electricity and gas contracts from a range of established suppliers.

Whether you operate a single premises or manage multiple sites, our team can review your existing arrangements, compare available tariffs and identify opportunities to improve your energy costs.

With further changes expected throughout 2027, now is a good time to review your current contract and understand the options available.

**Contact Energy Geeks today to discuss your business energy requirements and arrange a competitive quotation.**