A quick note from me (Josh):
Welcome to The George Briefing. Each week, my co-founder Lu and I use our tech-focused lens to scan the UK energy market. Our goal is to cut through the noise and deliver the key developments that will impact your business's bottom line, all explained in simple, actionable terms.
This weeks developments are:
The End of ‘Optional’: New Rules Mandate Smart Meters for Most UK Businesses by 2026
The Future is Flexible: Gov Pays Tech to Shift Your Energy Use
New Sheriff in Town: Ofgem to Regulate Heat Network Pricing for Businesses
This Week's B2B Market Pulse: Gas Down, Electricity Down, Renewables UP!
Four More "Hidden Gem" Stories You Might Have Missed
LATEST DEVELOPMENTS
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The government is ending the 'optional' era of smart meters for many UK businesses, introducing new rules that will require medium and large firms to have one installed by the end of 2026.
The details:
A new four-year smart metering framework will run from 2026 to 2029, setting binding annual installation targets for energy suppliers.
The government is making it mandatory for medium and large non-domestic businesses to have a smart or advanced meter installed and operational by the end of 2026.
Energy suppliers will be under increased pressure to meet these targets, meaning businesses can expect more proactive and persistent communication about meter upgrades.
The policy aims to improve business access to granular energy data, which is essential for effective energy management and identifying cost savings.
Why it matters: What's the real-world impact of this policy shift? For years, the smart meter rollout has felt like something that happens to households, with businesses often able to ignore it. That's over. By mandating installation for medium and large businesses, the government is forcing the issue. This isn't just about getting a new meter; it's about data. The real prize for the government is a smarter, more flexible grid, and for your business, it's access to half-hourly consumption data. This data transforms energy management from a guessing game based on a monthly bill into a data-driven strategy. It's the key to unlocking real operational cost savings by identifying energy waste and shifting usage to cheaper periods, directly impacting your P&L.
What you can do now:
Check your energy supply classification to determine if your business is considered 'medium' or 'large' and will be subject to the 2026 mandate.
Proactively contact your energy supplier to understand their installation plan for business customers. Scheduling the upgrade yourself minimises operational disruption.
Begin researching energy management software or platforms that can use smart meter data to help you analyse consumption and identify savings ahead of the installation.
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The government is betting on AI and tech innovators to solve the UK's expensive peak energy problem, signalling a future where when your business uses electricity will be as important as how much.
The details:
The government has launched a challenge, backed by an initial £4 million, for tech firms to find ways to shift 2 gigawatts (GW) of peak electricity demand by 2030.
The goal is to reduce reliance on expensive, carbon-intensive gas power plants that are fired up during peak hours, boosting energy security and aiming to lower long-term costs.
Potential solutions include using AI to forecast demand, automating building heating/cooling to run when energy is cheapest, and using electric vehicles as giant batteries to send power back to the grid (V2G).
Why it matters: What's the hidden context here? This isn't just a tech competition; it's a clear government signal about the future of the energy market. The industry jargon for this is 'Demand Side Response' (DSR), and for years it's been the preserve of large industrial users. This funding initiative is about creating the tools to bring DSR to the masses, including SMEs. As the grid becomes more reliant on intermittent renewables like wind and solar, its stability will depend on consumers being flexible. While these specific AI tools are years away from your P&L, the direction of travel is undeniable: the era of flat-rate energy pricing is ending, and businesses will increasingly be rewarded (or penalised) for being flexible. This is the government firing the starting gun on the race to build the technology that will make that a reality.
What you can do now:
Audit your data: If you have a half-hourly meter, access your data and identify your business's peak consumption times. Understanding your own patterns is the first step to managing them.
Question your supplier: Ask your current energy supplier or broker what 'time-of-use' or 'flexible' tariffs are available now. Even if you don't switch, it will educate you on the potential cost savings.
Future-proof your procurement: When investing in new equipment with significant energy use (like HVAC, refrigeration, or EV chargers), ask vendors about its 'smart control' capabilities and readiness for future grid-interactive services.
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: For the thousands of businesses connected to heat networks, Ofgem is stepping in as the new sheriff in town to regulate pricing and service standards from 2025.
The details:
Ofgem as Regulator: Starting in 2025, Ofgem will become the official regulator for heat networks in Great Britain, bringing them in line with the established gas and electricity markets.
New Consumer Protections: The regulations will introduce rules on fair pricing, quality of service, and transparent billing for customers.
Microbusiness Coverage: Crucially, these new protections will apply not just to domestic households but also to microbusiness customers on heat networks.
Pricing Powers: Ofgem will have the authority to investigate heat network pricing and intervene if they find customers are receiving poor value, with the power to enforce a price cap if necessary.
Why it matters: What's the real-world impact here? For years, businesses on heat networks - often in new developments or business parks - have been 'captive customers' in a regulatory black hole. If your heating failed or you were hit with an opaque, non-negotiable bill, your recourse was limited. This move finally gives you a powerful watchdog. For your P&L, it means protection from arbitrary price hikes and a clearer view of costs. Operationally, it means guaranteed service standards, reducing the risk of costly downtime from heating failures. It fundamentally de-risks being a heat network customer and brings long-overdue commercial protection to what has been a wild west corner of the energy market.
What you can do:
Check your status: Confirm if your business meets Ofgem's definition of a 'microbusiness' (typically fewer than 10 employees and turnover under £2m) to ensure you'll be covered by the new protections.
Review your contract: Dig out your current heat network supply agreement. Understand the terms you're on now so you can benchmark them against the new standards when they arrive in 2025.
Question future landlords: If you're considering a move to a property on a heat network, ask the landlord or developer how they are preparing to meet Ofgem's new requirements for service and transparency.
LATEST MARKET NUMBERS
📊 B2B Market Pulse
Wholesale Electricity Price (weekly average):
5.22 p/kWh(Down 32%)
- A massive week-on-week price collapse, driven by huge renewable output, presents a prime opportunity for businesses with flexible procurement needs.Wholesale Gas:
2.69 p/kWh(Down 5.6%)
- Gas prices softened significantly, tracking the lower demand for gas-fired power generation on a very windy and sunny week.UK Carbon Price (UKA):
£52.06 per tonne(Up 3.9%)
- Carbon prices crept upwards, adding a small amount of upward pressure to the non-commodity portion of business energy bills.Wind + Solar Generation (Share of UK Mix):
55.1%(Up 77%)
- An extraordinary week for renewables, with wind and solar accounting for over half of the UK's entire power supply.
The George Take: This week provides a textbook example of the new energy reality. The gargantuan contribution from renewables—over 55% of the total UK mix—didn't just suppress electricity prices; it completely reshaped the market. The flood of cheap, green power massively reduced the need for gas-fired generation, causing both electricity and gas wholesale prices to fall in tandem.
For a business owner, this demonstrates that weather patterns are now a more powerful short-term price driver than traditional commodity markets. The "bullish sentiment" we noted in the gas market last week was rendered irrelevant by a strong weather front. This creates huge volatility but also significant opportunities. Being able to act when these "green price drops" occur is the key to managing your energy spend in a renewables-dominated grid.
ALSO ON OUR RADAR
📰/📊 News & numbers also worth reading
Hidden Cost Alert: Ofgem Tackles Market Manipulation That Inflates Your Bill
Got an Inefficient Heat Network? A £77m Gov Grant Could Fix It
Get Paid for Pylons? New Scheme Offers Businesses £1k/Year Discount
A PLUG FOR GEORGE 🔌
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