UK retailers demand energy bill cuts as costs set to rise £440m
IN SHORT
UK retailers are urging the government to reduce green policy costs on energy bills, as electricity expenses are forecast to climb by £440 million in 2026. The British Retail Consortium's report highlights that these increases are driven by rising government levies and network charges, not wholesale energy prices, with non-commodity charges now making up two-thirds of electricity bills.
Key Numbers
£440 millionforecast increase in UK retailers' electricity costs in 2026
16%percentage increase in electricity costs forecast for 2026
£3.16 billionforecast electricity costs for UK retailers in 2026
£2.72 billionelectricity costs for UK retailers in 2025
two-thirdsproportion of electricity bills now made up of NCCs
Who's Involved
John Healey
urged by retailers to slash green policy costs from energy bills
British Retail Consortium
published report on energy non-commodity charges and their impact on retailers
↳ Why This Matters
Rising energy costs, driven by government levies and network charges rather than wholesale prices, directly impact retailers' profitability and could lead to increased prices for consumers. The BRC's advocacy aims to secure policy changes that reduce these pressures and improve the competitiveness of the UK retail sector.