As we step into 2025, the energy market continues to evolve against a backdrop of geopolitical uncertainty, regulatory reform, and accelerating decarbonisation targets. For UK businesses, understanding the shifting energy landscape is essential to navigating cost pressures, compliance obligations and sustainability ambitions in the year ahead.

So, what can organisations expect from the energy market in 2025 and how can they prepare?

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1. Volatility Is Likely to Persist

Despite some stabilisation in wholesale energy prices compared to the extreme spikes of 2022-2023, the market remains unpredictable. Factors such as:

• Ongoing conflicts affecting global gas and oil supply routes,
• Changing weather patterns impacting renewable generation capacity,
• And shifting international demand, particularly from Europe and Asia,

…will keep price risk firmly on the agenda.

Businesses renewing energy contracts this year may still face above-average rates, while short-term flexibility strategies (such as flexible purchasing or demand-side response) could offer opportunities to mitigate risk.

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2. Non-Commodity Costs Continue to Rise

While wholesale prices draw the headlines, non-commodity costs the charges that fund network maintenance, renewable subsidies, and government levies will rise steadily in 2025.

With the UK’s Net Zero targets driving grid modernisation, renewable support, and investment in low-carbon infrastructure, businesses can expect increases in:

• Capacity Market charges,
• Network (DUoS/TNUoS) costs,
• And possibly new green levies or mechanisms supporting hydrogen, carbon capture, and storage schemes.

Monitoring and managing these ‘third-party’ charges is crucial to controlling overall energy spend.

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3. The ESG and Reporting Pressure Intensifies

2025 will see continued roll-out of mandatory sustainability and carbon reporting obligations both from the UK government and the EU (for firms trading or operating across borders).

Key developments include:

• The EU’s Corporate Sustainability Reporting Directive (CSRD), applying to many large UK-based firms operating in Europe;
• Rising interest from financiers and investors in businesses’ ESG (Environmental, Social and Governance) performance;
• Growing expectations to measure, reduce and report Scope 1, 2 and (increasingly) Scope 3 emissions.

For businesses of all sizes, transparent and credible energy and carbon data is no longer optional, it’s fast becoming a licence to operate.

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4. Energy Efficiency and On-Site Generation in Focus

Against the backdrop of long-term price uncertainty and tightening carbon targets, more UK businesses are considering:

• Energy efficiency retrofits, such as LED lighting, BMS systems and HVAC upgrades;
• On-site renewable generation, including rooftop solar PV and battery storage;
• And Power Purchase Agreements (PPAs) with renewable energy generators.

With government incentives, green financing and potential tax benefits available, 2025 could be the year when more companies take proactive steps towards energy self-sufficiency and carbon reduction.

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5. Demand Flexibility and Smart Technologies Gain Ground

As the grid decarbonises and renewable generation expands, the ability of businesses to flex their energy demand will be increasingly valuable.

Technologies such as:

• Automated demand response systems;
• Real-time energy monitoring;
• And AI-driven load forecasting

…are helping large energy users optimise consumption during peak times, access National Grid flexibility schemes, and reduce charges linked to Triads or peak DUoS rates.

In 2025, flexibility will be rewarded both financially and in terms of carbon reduction.

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How Should Businesses Prepare for 2025?

For organisations across sectors, the energy agenda this year demands a proactive and informed approach:

✔️ Review and renew energy procurement strategies — consider flexible contracts or risk-managed fixed deals;
✔️ Conduct historical energy audits to recover overcharges and optimise non-commodity cost management;
✔️ Explore on-site generation and efficiency investments — these can drive long-term savings and decarbonisation;
✔️ Stay ahead of regulatory reporting — ensure ESG and carbon data is reliable, transparent and ready for stakeholders;
✔️ Investigate demand-side response and flexibility options to unlock additional revenue streams and savings.

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How Enexus Can Support You in 2025

At Enexus, we help UK businesses make sense of energy complexity. Whether it’s:

• Securing competitive energy contracts,
• Conducting forensic audits to reclaim overcharges,
• Building bespoke Net Zero roadmaps,
• Or optimising flexibility and on-site generation potential,

Our expert team ensures your energy strategy is fit for 2025 and beyond.

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Contact Enexus today for a free consultation — and let’s make your energy work smarter, greener and more cost-effectively this year.