How the Iran-Israel Conflict Could Impact UK Energy Prices

July was a month that saw an England international football team lift a trophy and the unfamiliar events weren’t just limited to the sporting arena. For the first time in recent memory, it wasn’t geopolitics and international conflicts that were the main drivers behind movements in the energy market. In this article we review the factors that did cause energy prices to change and how prices are likely to move for the remainder of 2025.

What is the EII Support Levy? As of April this year, a new charge called the EII Support Levy may have begun appearing on your invoices. The ESL has been introduced by the government to fund the Exemption Scheme for Energy Intensive Industries (EIIs). This essentially means that businesses not categorised as operating in Energy Intensive Industries will be offsetting the costs of businesses whose SIC codes do fall under the EII umbrella. This is being done to ensure UK businesses with large energy costs can remain competitive internationally. Which businesses need to pay it? All non-domestic UK energy users who don’t have a SIC code that classifies them as being a part of an Energy Intensive Industry will need to pay it. How the charge is applied will be at the discretion of suppliers with some suppliers yet to confirm exactly how they will be applying the charge.

June 2025 Review By Adam Novakovic The British summer is underway and it commenced with a heatwave, leading to record temperatures during the opening games of Wimbledon. However, energy prices would be largely dictated by events far away from the UK, as a need for cool heads in the Middle East was the primary driver of energy prices throughout June.

The UK's Modern Industrial Strategy 2025 Electricity Discounts for Over 7,000 Businesses Thousands of UK businesses are set to benefit from a new government plan to cut energy costs, boost competitiveness, and support long-term industrial growth. As part of the newly launched Industrial Strategy, electricity bills for over 7,000 energy-intensive firms will be cut by up to 25% from 2027. What Is the UK's Modern Industrial Strategy? Unveiled on 23 June 2025, the government’s 10-year Industrial Strategy is designed to stimulate business investment, create over one million skilled jobs, and address key structural barriers that have hindered British industry — particularly high electricity prices and delays in grid connections. Central to this plan are two new policies focused on reducing energy costs for businesses: The British Industrial Competitiveness Scheme (BICS) An expanded British Industry Supercharger programme 

May Review By Adam Novakovic As Summer kicked into gear, we saw a small jump in the wholesale energy markets at the start of month before the prices began to stabilise.

April 2025 Review By Adam Novakovic For some, April can be the cruellest of months. We saw Earthquakes cause damage in Thailand, volcanic eruptions near Iceland, and the month ended with blackouts in the Iberian peninsula. The latter highlighting the issues with switching to renewable energy sources too quickly, at the expense of energy grid stability. However, April can also be a time of great optimism as we exit the winter months and head towards the summer. The energy markets gave us plenty of reasons to be happy in the past month as wholesale gas prices fell over 20%. This drop was also seen in the gas markets for Winter’25 (a 20.42% drop) and for Summer’26 (a 14.17% drop) as prices fell, representing a good buying opportunity for those on flexible contracts.

TCR Banding: A Powerful but Overlooked Way to Lower Energy Costs for UK Businesses As UK business energy prices continue to fluctuate at historically high levels, companies across the country are under increasing pressure to find reliable ways to lower energy costs. With government levies, non-commodity charges, and market instability all contributing to rising bills, businesses must now look beyond traditional energy-saving methods to manage their expenses. In previous articles we looked at how to lower kVA charges , and published a guide on how to lower business energy costs . One such method gaining attention is TCR Banding — a relatively lesser-known, yet impactful solution for reducing DUoS and TUoS charges. What Is TCR Banding? TCR Banding is part of the Targeted Charging Review (TCR) , a reform introduced by Ofgem in 2022. Its goal is to ensure a fairer, more consistent system for charging UK electricity users for their share of the grid's maintenance costs — specifically the Transmission Use of System (TUoS) and Distribution Use of System (DUoS) charges. Instead of charges being based on when energy is used (which could be manipulated by large users), charges are now fixed and based on how much energy is typically consumed. This is where TCR Bands come into play. What Are TCR Bands? TCR Bands categorize electricity meters into different levels based on their voltage type and agreed kVA capacity. These bands determine the fixed DUoS and TUoS charges applied to a business's energy bill. For Low Voltage (LV) Half-Hourly Meters: Band 1: 0 – 80 kVA Band 2: 81 – 150 kVA Band 3: 151 – 231 kVA Band 4: 232 kVA and above For High Voltage (HV) Half-Hourly Meters: Band 1: 0 – 422 kVA Band 2: 423 – 1,000 kVA Band 3: 1,001 – 1,800 kVA Band 4: 1,801 kVA and above The higher your TCR band, the more you'll pay in fixed DUoS and TUoS charges — making it essential for UK businesses to ensure their banding is correctly assigned. Who Assigns Your TCR Band? Your Distribution Network Operator (DNO) is responsible for assigning your TCR Band. DNOs are regional companies that manage the physical infrastructure delivering electricity to your site. They’re also the ones compensated through DUoS and TUoS charges shown on your business energy invoice.

March 2025 Review By Adam Novakovic As we exit the winter season and the weather begins to improve, the energy news has – once again -- been dominated by the conflict between Russia and Ukraine.

February Review By Adam Novakovic With consumer spending declining and OFGEM raising their price cap, you would be forgiven for seeing February as a month where negative news was at the forefront, but in the energy markets, this was not the case.