--- title: "Budget 2026: Business Energy Bills Outlook | ReEnergise" description: What does Budget 2026 mean for business energy bills? Explore the measures, price outlook and practical steps to manage procurement and consumption. --- [Skip to content](https://www.reenergisegroup.com/work-examples-expertise-stories/blog/budget-2026-business-energy-bills#main-content) [![ReEnergise](https://www.reenergisegroup.com/hs-fs/hubfs/reenergiselogo-lightgreendarkgreen-1.png?width=350&height=55&name=reenergiselogo-lightgreendarkgreen-1.png)](https://www.reenergisegroup.com) - Services Show submenu for Services - [Engineering Services](https://www.reenergisegroup.com/engineering-services) - [Energy Procurement](https://www.reenergisegroup.com/energy-broking-and-procurement) - [Compliance & Reporting](https://www.reenergisegroup.com/compliance-reporting) - [Our Team](https://www.reenergisegroup.com/about-reenergise-team) - [Case Studies](https://www.reenergisegroup.com/work-examples-expertise-stories) Open main navigation Close main navigation - Services Show submenu for Services - [Engineering Services](https://www.reenergisegroup.com/engineering-services) - [Energy Procurement](https://www.reenergisegroup.com/energy-broking-and-procurement) - [Compliance & Reporting](https://www.reenergisegroup.com/compliance-reporting) - [Our Team](https://www.reenergisegroup.com/about-reenergise-team) - [Case Studies](https://www.reenergisegroup.com/work-examples-expertise-stories) - [Contact](https://www.reenergisegroup.com/contact-reenergise) [Contact](https://www.reenergisegroup.com/contact-reenergise) [All posts](https://www.reenergisegroup.com/work-examples-expertise-stories/all) November 3, 2026 # Budget 2026: what is the outlook for business energy bills? By  [Steve Faucherand](https://www.reenergisegroup.com/work-examples-expertise-stories/author/steve-faucherand)  ·  2 minute read Whilst the Budget has introduced significant support for domestic energy bills and has targeted energy-intensive industries through the British Industrial Competitiveness Scheme (BICS), benefitting maybe 10,000 qualifying businesses, most commercial enterprises will see little immediate relief from rising utility costs. Combined with a market outlook that points to continued volatility in energy prices, businesses must prepare for a future where managing energy consumption remains a strategic priority. The Chancellor announced some targeted measures that will benefit all commercial organisations, including: - Cancellation of the planned Gas Shipper Obligation, moving the support for hydrogen and CCS (carbon capture and storage) projects onto general taxation, thereby avoiding additional future costs being passed through gas bills. - Freezing the CCL (climate change levy) affecting electricity costs from April 2028, although not the CCL for gas. - Continued business rates support for retail, hospitality and leisure businesses, though not a direct energy measure, nevertheless helpful. ##### So what is the outlook for business energy prices? Unfortunately for most businesses, these budget measures will have minimal impact on energy prices in comparison with the wider market pressures. There is little evidence that utility costs will return to pre-2021 levels in the foreseeable future. The **short-term outlook** (next 6-12 months) suggests continued volatility and upward pressure. Several factors are expected to influence prices: - Continued conflict in the Middle East causing global gas market uncertainty. - International competition for limited shipped LNG (liquified natural gas). - Electricity prices continuing to be driven by gas prices (remember electricity prices rose more than gas prices after Russia invaded Ukraine, despite it being gas supply that was directly affected). - Rising electricity network and transmission charges. The **medium-term** (2027-2030) to **longer-term** (post-2030) **outlook** is potentially a little more encouraging, assuming no further energy shocks. The Chancellor re-confirmed the Government’s commitment to the 2050 net-zero target. This means continuing to pursue electrification and bringing more renewable generation onto the grid, which will eventually allow the decoupling of electricity prices from gas. The Chancellor also gave a commitment to building out the grid to match this increased generation. So in the medium term the benefits of: - Expansion of offshore wind capacity and growth in renewable generation across the UK. - Increased grid scale battery storage and greater control leading to more grid flexibility. - Additional global LNG production entering the market. - Network charges, infrastructure investment, decarbonisation costs and the electrification programme. Will be offset by: Businesses should therefore expect prices to become more stable in the medium term, but overall utility costs are likely to remain above the levels enjoyed before the energy crisis. In the longer term, providing subsequent governments don’t cause major changes of direction, electricity prices should fall to reflect the true cost of renewables. ##### What does this mean for businesses now? The message from both the Budget and the wider market is clear: for most organisations, the future of energy cost management will depend less on government support and more on procurement strategy, energy efficiency and investment in lower-cost, sustainable sources of power. \-------------------------------   Need help understanding your options? [Talk to ReEnergise about energy procurement, building performance and investment priorities.](https://www.reenergisegroup.com/) ReEnergise commentary, prepared 2 November 2026. Market outlooks are assessments, not guaranteed price forecasts. Policy sources: [HM Treasury Budget 2026](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html) and [HMRC Climate Change Levy changes from April 2028](https://www.gov.uk/government/publications/climate-change-levy-rates-from-1-april-2028/climate-change-levy-changes-to-rates-from-1-april-2028). 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