Over a quarter of businesses (27%) say they are currently finding it difficult to pay their energy bills, according to new research from the British Chambers of Commerce (BCC).
The BCC survey of over 600 firms shows energy costs are particularly challenging for manufacturers, with 35% saying they’re struggling to pay bills, and 34% of B2C services businesses reporting difficulties.
The fresh data comes as the BCC publishes a new report into business energy costs, just days after the regulator Ofgem announced household bills will fall from April. The report, ‘Powering Growth: Resetting Energy Costs for Businesses’, makes a series of recommendations to government, including calls to:
• Fund at least part of the Renewables Obligation on business energy bills, immediately cutting energy costs for firms.
• Implement a permanent energy advice scheme for businesses to drive energy efficiency.
• Introduce a Targeted Electrification Discount to support businesses with the cost of switching to low carbon alternatives.
• Urgently expand the UK’s energy storage capability and deliver on grid connection reforms.
The BCC Insights Unit gathered data from 672 firms, most of them SMEs, between early January and early February. While the percentage of businesses struggling to pay their bills has eased (37% in 2024, and 52% in 2022 – the height of the energy price crisis), a worrying proportion of firms – 27% – are still experiencing difficulties. Two-thirds (66%) say it will be easy to pay bills, while 6% are unsure).
The BCC’s energy report highlights how UK businesses are facing some of the highest energy costs in the world. This pressure is directly feeding into price rises – 52% of businesses report utility costs as a price pressure, according to separate BCC data for Q4 2025. This comes as at a time when firms are facing wider pressures elsewhere, including national insurance and business rates.
The BCC is calling for immediate “meaningful support for businesses to manage energy costs” to strengthen growth and competitiveness. The report also concludes that the uptake of low-carbon technology solutions by businesses is being held back by high upfront costs. The BCC is calling on ministers to introduce stronger targeted financial support for businesses looking to switch to low carbon.
Ben Martin, Policy Manager at the British Chambers of Commerce said:
“High energy costs are not simply an additional expense for businesses, they hit growth and competitiveness. Ministers need to be doing more to cut costs for tens of thousands of firms across the UK.
“With over half of businesses under pressure to raise prices because of their utility costs, our research shows energy costs are still sparking real concern. That’s almost four years since the peak of the energy crisis.
“All this comes as firms are already battling high costs elsewhere, from national insurance to business rates.
“Ministers have rightly identified the impact energy is having on the cost of living. That needs to match by an understanding of the impact on the cost of doing business.
“Government could quickly provide support for business by funding part of the Renewables Obligation on energy bills, similar to what they did in the Autumn Budget 2025. This, alongside providing the right support for firms with their energy consumption, could provide some much-needed relief for businesses.
“Firms want to play their part in the UK’s energy transition, but they can’t do that when they are crippled by sky-high businesses costs, including energy.
“Urgent action is needed to help businesses keep the lights on, now and in the future.”