Industrial Electricity Prices
Published: January 27, 2025This report analyses the electricity prices paid by industrial consumers in the United Kingdom. The data is sourced from the Department for Business, Energy and Industrial Strategy (BEIS) in addition to estimates by IBISWorld. The data is presented as the average price paid during a financial year (April to March) by a medium-sized industrial consumer (an industrial company with an annual consumption between 2000 and 20000 MWh). This price includes environmental taxes and levies but excludes VAT.
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Recent Trends – Industrial Electricity Prices
Over the five years through 2024-25, the price of electricity paid by industrial users in the UK is forecast to grow at a compound annual rate of 13.3%. Although electricity prices are quite volatile, the general trend since the turn of the century has been one of increasing prices.
The industrial price of electricity is determined by supply and demand. Other than input prices, factors that may influence the supply of electricity include the capacity of power plants, their current technical condition and planned overhauls or unplanned outages. On the demand side, changes in the state of the UK economy as well as energy demand in other parts of the world affects prices. However, changes in the spot price of electricity, which is entirely influenced by supply and demand, do not necessarily fully filter through to the price paid by industrial businesses.
5-Year Outlook – Industrial Electricity Prices
International trade under the European Internal Energy Market (IEM)...
