What’s your site worth in the energy markets? Find out in 4 simple steps Go to Energy Opportunity Calculator

Login 01923 882 778
Change location to UK
Change location to Ireland
Change location to the United States

GB electricity prices on the up, says BEIS

energy trading desk graphs

Average non-domestic sector electricity prices, excluding the cost of the Climate Change Levy (CCL) continued to increase in Q1 2021, the government has informed.

Published on 29 June, the latest energy trends and prices documents showed that the average price of electricity in the non-domestic sector was 14p/kWh – up 2.5% on year ago levels.

Price rises were seen in all sizes of consumer apart from the large (20,000 – 69,999MWh) and very large (70,000 – 150,000MWh) bands, which saw falls of 1.3% and 3%, respectively. Extra large users (defined as >150,000MWh) saw the highest increase at 6.1%. In addition, the cost of the CCL has increased by 2.7%.

GB energy costs on the up BEIS

Energy consumption in the first quarter of 2021 was low as COVID-19 restrictions continued to reduce demand. Energy requirements for industrial use were down 2.1% on the same period last year, and demand from other end users (e.g., shops, restaurants, offices, and public buildings) also decreased by 4.6%.

For generation, BEIS reported total electricity production of 83.5TWh in Q1 21’, which was a 4.2% lower than year ago levels. This was in line with the 3% decrease in demand over the same period. Renewables generation was 34.7TWh in Q1 21’, down 16% from  Q1 20’, despite small increases in capacity.

Fossil fuels generated 34.7TWh in the first quarter of 2021, matching generation from renewables. This was a 15% increase compared to year ago levels as gas generators had make up for reduced nuclear and renewable generation. Gas remained the fuel with the highest generation at 31.9TWh and increased by 19% compared to the same period of 2020. Coal generation continued to decline, falling by 27% between Q1 2020 and Q1 2021.

Separately, BEIS published a comparison of UK electricity prices with other EU-14 countries. It found that the average industrial electricity prices, including taxes, rose in the UK and in most of the EU-14 countries on the same period in 2019 for the medium consumers. The UK price rose by 2.3%, while the average price increase in the EU-14 was 4.8%. The UK prices for medium consumers, excluding taxes and levies, were the second highest in the EU-14 plus UK group. UK prices were 27% above the estimated EU-14 median price.

GB energy costs on the up BEIS

Mark Davis, GridBeyond’s Managing Director UK & Ireland said:

“Many large industrial and commercial businesses are already taking steps to reduce their energy use as a means to increase competitiveness and support their bottom lines. For businesses with high energy costs, or operations that need reliable power, on-site energy generation or storage technologies can provide significant benefits.

“Energy prices can be highly volatile. By generating or having storage on-site you can avoid peak costs and some charges associated with delivered energy. On-site energy generation or storage is also an excellent way to demonstrate your commitment to reducing carbon footprint.

“Advanced technologies, such as GridBeyond’s AI-powered energy technology platform, Point, help large energy consumers reduce their energy costs, gain revenue from their assets and improve their green credentials through participation grid balancing services, while simultaneously, generating savings and operational efficiencies”.


Manage your energy costs with an on-site battery

GridBeyond helps businesses to install batteries on their sites without any upfront cost. We empower I&C businesses to better manage exposure to electricity prices, increase resilience and improve sustainability credentials by allowing them to run their operations on the greenest and cheapest energy possible.


Read more

BEIS to review compensation for indirect UK ETS costs

BEIS unveils £166M to support industrial decarbonisation

UK ETS market opens for business

UK to speed up decarbonisation with stricter emissions targets

Queen’s Speech: Environment Bill to be introduced later this year

Up next

Aggregation of MW for participation in DC to be moved to Grid Supply Point level

Read next article