UK businesses are paying 9.3% more for electricity than last quarter, highlighting rising pressure on operating costs nationwide.

POWWR’s latest Quarterly Energy Barometer Report found average annual electricity bills now stand at £5,192, marking a 6.3% increase compared with the same period last year.

Regional disparities are widening, with businesses in South West England experiencing the steepest quarterly rise at 18.0%. South Wales followed with a 14.8% increase, while East Midlands firms saw costs rise by 14.0%.

Despite those increases, North Wales businesses continue to pay the highest average annual bills at £6,257, which is £1,838 more than businesses in North East England.

David Sheldrake, CRO at POWWR, said: “UK businesses are paying significantly more on average for their electricity than last quarter.”

He added: “Many can mitigate the rises by shopping around for their energy, with businesses able to save around 2.7% by switching suppliers.”

The report, based on more than 670,000 data points, also found business energy usage rose by 7.1% quarter-on-quarter, increasing by around 1,500 kWh to an average of 23 MWh annually.

South West England and Southern England recorded the largest increases in usage, while South Scotland remained the highest-consuming region overall.

POWWR also found average business energy contract lengths shortened from 28 to 27 months, suggesting growing caution amid geopolitical instability and volatile fuel markets.

The company said shorter contracts may reflect uncertainty, as businesses weigh future pricing risks while seeking flexibility in a changing energy landscape.