SMEs face an additional £5,000 in annual energy expenses compared to the period before the energy crisis began three years ago, with further price increases anticipated next year.

Although wholesale energy prices have declined since their peak during 2022-23—driven by the global energy market upheaval following Russia's invasion of Ukraine—current costs remain substantially higher than the levels seen before 2021.

Back then, the average small business, including pubs, restaurants, and independent retailers, typically paid between £7,000 and £8,000 annually for energy.

According to recent data from energy analyst Cornwall Insight, despite the recent dip in wholesale prices, the financial burden on small businesses continues to be significantly higher than it was before the crisis, with further increases on the horizon.

Data collected from April to March, reflecting the typical period when most businesses renew their energy contracts, indicates that energy costs for small businesses are expected to rise even further.

According to projections by an energy consultancy, average annual electricity bills for small businesses are anticipated to reach £13,264 by April 2025. This marks a staggering 70 percent increase compared to the £7,811 average paid during the 2020/21 period.

The exact amount a business will pay varies based on factors such as their energy supplier and tariff, geographic location, and overall energy consumption.