UK Hospitality Businesses | Navigating Energy Costs in 2025

Energy costs are a key focus for UK hospitality businesses moving into the new year. With evolving energy markets and changing regulations, knowing how to manage expenses is critical to success. As a rising leader driving the charge toward business sustainability, PE is here to offer practical guidance to help business owners across the region take control of their hospitality energy costs in 2025.

Let’s explore some actionable insights and business strategies that will make navigating energy costs more effective in 2025 and beyond.

The Domestic Price Cap & How It Affects Businesses

The domestic energy price cap in the UK is projected to rise in April 2025 by up to 3%, which could have significant implications for hospitality businesses. While there isn’t a fixed commercial energy price cap, the anticipated rise signals a trend in overall energy market conditions, meaning the hospitality sector can see energy rates go up.

This expected increase is influenced by ongoing geopolitical circumstances and soaring wholesale energy costs that can indirectly impact businesses in a few ways:

• Energy Contract Costs: Because a rising domestic price cap can increase wholesale utility costs, businesses may be subject to higher energy contract expenses, emphasising the importance of securing competitive rates to effectively manage their budget.
• Consumer Spending: Higher energy bills could reduce disposable household income. Businesses in retail and hospitality may experience downward shifts in consumer spending patterns, potentially impacting sales and revenue stability.
• Operational Costs: Industries that require significant energy usage might encounter increased expenses. Proactively monitoring utilities and integrating more energy-efficient systems can help offset any challenges tied to volatile market fluctuations.
• Budget Forecasting: Anticipated energy price hikes can have a big effect on future budget planning. Businesses must adapt by revising financial strategies and ensuring resources are appropriately allocated for operational continuity.

Strategies for Mitigating Rising Energy Costs in Hospitality

The blueprint for keeping utility bills stable without compromising the guest experience will depend on what type of hospitality business you run and where you use the most energy. Here are some measures hotels, pubs, and eateries can take to offset unnecessary utility costs:

Hotels

If you’re in the lodging sector and operate a hotel, energy-saving technologies like LED lighting and smart building systems can be adopted to optimise energy use. Because hotels are often known to spend nearly half of their utilities on heat and water, more energy-efficient systems can further reduce operational costs while keeping guest comfort a priority.

Restaurants & Pubs

Pub utility management and restaurant energy efficiency efforts should focus on areas like modern refrigeration and utility monitoring systems. Since dining establishments can consume more energy from lights and storing perishable items, it’s worthwhile to invest in LED lighting and energy-saving appliances. These implementations will minimise unnecessary expenses while ensuring a welcoming environment for patrons.

Advanced payment and telecom systems can also help mitigate overhead costs during periods of inflation. A centralised system can provide better visibility over supply chains, making inventory management more accurate.

PE – A Pioneer in Improving Hospitality Sector Utilities

At PE, we specialise in providing industry-based services to generate utility savings in the UK’s hospitality sector. Our business solutions will refine your energy use, reduce costs, and streamline operational efficiency.

When you partner with PE, you’ll also gain access to our enfiniti ecosystem, an intelligent digital interface that puts energy management for food service and other hospitality operations in clear focus. With its ability to monitor energy patterns, analyse data, and adapt as your business evolves, this innovative platform will integrate seamlessly into your current systems, giving you complete command of your energy usage.

In an industry renowned for its high utility consumption, efficient energy management is paramount. Get in touch with us today to learn more about how we can provide the tailored solutions you need to future-proof your business in the face of rising energy challenges.