Take Control of Energy Costs: A Guide for SMEs Entering FY 2025/26

Thirty-seven percent of UK SMEs identified energy costs as their biggest financial challenge in 2024 — so how can your business gain control as we enter the 2025/26 financial year?

With rising wholesale prices and economic uncertainty, now is the perfect time to reassess your energy strategy. Whether you’re a start-up or a growing business, identifying cost-saving opportunities and taking proactive steps can significantly reduce your utility expenses.

At Candid Technology Ltd, we specialise in helping businesses across the UK save on electricity, gas, water, telecom, and card machine services. Our team of experts works directly with suppliers to secure the most competitive contracts and provide tailored advice that meets your needs.

To help you prepare for the year ahead, we’ve collaborated with industry experts — including insights from Utility Bidder’s Head of Supplier Relations, Mark Gamble — to explore:

Actionable steps you can take to reduce energy bills now

Wholesale energy market trends for 2025

The biggest challenges facing SMEs today

🔍 The Current State of the UK Wholesale Energy Market

The energy market remains volatile, shaped by global weather patterns, geopolitical tensions, and shifting supply chains. Here are the key developments:

❄️ Colder-than-Expected Winters

Europe experienced colder winter conditions than anticipated, leaving UK and European gas storage levels 18% lower than in 2023. With reduced reserves, prices have become more reactive to weather shifts, increasing market instability.

🚧 Ukraine-Russia Gas Transit Expiry

The expiration of the Ukraine-Russia gas transit agreement at the end of 2024 has prompted many countries to seek alternative supply routes. This has driven up competition—and prices—for accessible sources of gas.

🏭 Summer Injection Pressures

Due to depleted reserves, summer injection targets are under pressure. Storage sites must refill to meet the EU’s 90% fullness target by November 1st, although several member countries are lobbying for more flexibility due to difficulty meeting the deadline.