Price volatility hits business confidence

Businesses are sounding the alarm over rising and unstable energy costs, with three in five saying price volatility is already hitting profits and weakening their competitiveness.

New research from EY found 66% are also worried about whether future energy supplies will be reliable enough to meet their needs.

The findings, based on a survey of more than 2,400 global business leaders including 314 in the UK, show a clear shift in how firms think about energy. It’s no longer just a bill to pay – it’s a central part of business planning.

The majority (70%) of companies say they now have a comprehensive energy strategy, with 86% aiming to meet their targets – from cutting emissions to electrifying operations – by 2040.

But barriers remain, with the cost of investment, red tape and infrastructure limitations among the top issues holding them back.

Despite this, businesses are pushing ahead.

Around 69% say they plan to invest more over the next three years to drive down energy use and emissions.

The role of energy providers is also changing. Only 24% of companies now see suppliers as basic service operators.

Nearly twice as many – 44% – want their energy partners to act as transition advocates who can help them adapt and grow.

Demand for digital support is rising too.

Over two-thirds of firms want AI and other smart tools built into their energy solutions as electricity use ramps up.

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