A growing number of British businesses are calling on the government to introduce an energy price cap for commercial users, following sharp increases in energy costs that have left many struggling to stay afloat.
According to new research by energy broker Utility Bidder, nearly four in five firms across England, Scotland and Wales reported steep hikes in energy bills over the past year, with small and medium-sized enterprises (SMEs) bearing the brunt of the impact.
Unlike domestic consumers, UK businesses are not protected by a government-imposed energy price cap, leaving them exposed to volatile market rates. The study revealed that 80.6% of businesses now consider energy prices among their biggest financial challenges, with 22% paying over £6,000 annually.
The regional impact has been particularly severe in the North East, where 100% of surveyed businesses reported rising energy costs. Similarly, 92.9% of businesses in the West Midlands, 87.5% in Wales, and 84.6% in Scotland experienced higher bills.
In response, Utility Bidder has launched a parliamentary petition urging the government to implement a cap on business energy prices and provide targeted financial support. CEO Chris Shaw warned that many firms are being forced to cut spending, postpone investments, or even consider closure.
“For too long, British businesses — especially small and independent ones — have been left exposed to unstable energy prices without the safety nets that domestic consumers have,” Shaw said. “We need urgent action to protect the backbone of our economy.”
The research also highlights significant gender and income disparities. Nearly half (47.7%) of female-owned businesses reported receiving no government support, compared to 28.3% of male-owned firms. Additionally, two-thirds of businesses earning less than £10,000 annually are paying between £1,000 and £1,500 on energy bills, despite their modest scale.
The cost burden also varies significantly by region. In Scotland, 38.5% of businesses spend more than £6,000 per year on energy, the highest in the UK. In contrast, 37.5% of East Midlands firms pay less than £1,000.
More than 61% of business owners surveyed said they support the immediate introduction of an energy price cap or stricter regulations. Other measures backed by business leaders include government subsidies (52.9%), tax breaks or energy efficiency incentives (47.6%), and long-term investment in renewables (40.5%).
Despite the UK’s commitment to achieving Net Zero by 2050, some small business owners say they cannot afford to meet climate targets without adequate support. One entrepreneur from the South East, whose bills have risen to £2,000, called on the government to “stop Net Zero”, highlighting growing tensions between environmental goals and economic realities.
With confidence waning and the economy still in a fragile state, business groups argue that immediate intervention is necessary. As Shaw put it: “It’s time to give businesses the same protections and stability that households receive.”
Utility Bidder’s petition can be viewed on the UK Parliament Petitions website.
