After enduring record-breaking energy prices, supplier collapses, and global instability, the UK energy market in 2024 showed signs of recovery. But as we enter the next phase, businesses and energy professionals alike are asking:
“What comes next for the UK energy sector?”
At Scalex Technology, we support thousands of UK businesses and brokers through the energy transition. Here’s our outlook on what to expect beyond the bounce-back year.
A Quick Recap: Where We’ve Been
- 🔺 2021–2022: Soaring wholesale prices due to global gas shortages and the Ukraine conflict
- ❌ Over 30 suppliers exited the UK market
- 💰 Government stepped in with Energy Bill Relief Scheme for businesses
- 📉 2023–2024: Wholesale prices dropped closer to pre-crisis levels
- 🌱 Major focus on renewables and infrastructure reforms
1. Stabilisation, But Not Predictability
Energy markets have cooled, but volatility hasn’t disappeared.
What to expect:
- Prices may fluctuate due to ongoing global tensions and weather impacts
- Seasonal buying strategies remain crucial
- Fixed contracts will be a priority for budget-conscious SMEs
Broker Insight: Smart brokers are advising clients to secure fixed deals while the market remains relatively stable.
2. Rebuilding Trust in Suppliers
The collapse of multiple suppliers during the crisis left many businesses sceptical. Now, supplier strength and service are just as important as price.
What’s changing:
- OFGEM has increased licensing and financial requirements
- Consolidation continues: fewer but stronger suppliers
- Businesses are vetting customer service, not just tariffs
Scalex Tip: Always evaluate supplier creditworthiness and service SLAs before switching.
3. The Net Zero Push Accelerates
As the UK aims for Net Zero by 2050, policies are shifting to drive sustainability across all sectors.
What this means for businesses:
- Carbon reporting (SECR/ESOS) compliance is tightening
- Energy efficiency incentives and funding schemes are returning
- Expect more businesses to switch to green electricity and gas
Brokers should: Position green contracts and carbon reduction services as long-term cost and compliance tools.
4. Digitalisation and Smart Tech Take Centre Stage
Smart meters, demand-side response, and energy management platforms are no longer “nice-to-haves”—they’re essential.
Next steps:
- Businesses will adopt smart technology to track usage and avoid peak rates
- Time-of-use tariffs and data-led optimisation will grow
- Brokers can offer tech-led value-added services to stand out
5. Water, Gas, and Power Convergence
Businesses want one point of contact for all their utilities. The lines between energy, water, and waste procurement are blurring.
Trend:
- Multi-utility brokers are gaining market share
- Companies are consolidating supply contracts for simplicity and savings
Scalex Technology offers: Support across electricity, gas, and water with fully managed service options.
6. Tighter Regulation and Smarter Consumers
The post-crisis era has created a new kind of customer—more cautious, more informed, and more demanding.
Expect to see:
- Greater focus on contract terms, exit fees, and hidden charges
- Demand for flexible contracts and ethical suppliers
- OFGEM continuing to strengthen consumer protections
Final Thoughts: From Recovery to Resilience
2024 was a year of recovery. Now, the UK energy market is entering an era of resilience, responsibility, and rapid change.
Whether you’re a business decision-maker or energy broker, the next phase will require adaptability, digital tools, and sustainable thinking.
🔍 Need help navigating what’s next?
Scalex Technology is here to guide you—with tailored energy solutions, contract support, and expert insight into where the market is headed.
