Electricity bills for small industrial consumers, including large retail and leisure units, are projected to increase by approximately £200,000 compared to pre-crisis levels by the year 2026.
Data from Cornwall Insight’s Business Energy Cost Forecast indicates that these businesses are expected to incur annual electricity costs of around £550,000 (£238 per MWh) during the contract year from April 2026 to March 2027.
This marks a 57% rise from the pre-energy crisis figure of just over £350,000 (£151 per MWh).
The anticipated increase in costs reflects a rise from the current electricity bills of about £540,000 per year (£232 per MWh).
The forecast aligns with the typical April to March contract renewal period for most businesses and highlights that, while energy costs for small industrial businesses have decreased from the highs seen in 2022-2023, which nearly reached £1 million annually, the lingering effects of the energy crisis and geopolitical factors, such as Russia’s invasion of Ukraine, continue to impact the wholesale market.
In the coming years, the introduction of new carbon levies and changes in cost structures are expected to contribute to rising electricity prices from April 2026.
Experts note that similar trends are expected for both small and large industrial customers.
