Almost half of UK businesses surveyed by EDF say increasing complexity in managing energy supplies and costs is making budgeting harder, despite widespread confidence in their ability to handle price volatility.
The research found that 86% of respondents felt confident managing energy price movements, while 74% said managing their supplies and costs had become more complex over the past three years.
That complexity is affecting decisions beyond energy procurement. Some 48% said it was making budgeting more difficult, 47% reported reduced confidence in long-term planning and 43% said it was slowing investment decisions.
EDF said the findings suggested a possible gap between businesses’ confidence and their preparedness for changes in the energy market. However, the responses measure different things: confidence in handling price volatility can coexist with greater difficulty managing contracts, regulation and investment.
Wholesale prices remain the biggest challenge
Wholesale price volatility was the most frequently cited challenge, identified by 49% of respondents.
Businesses also reported having to navigate more complex contracts, changing regulation, new technologies and difficulties with the quality and visibility of their energy data.
These factors extend energy management beyond securing a competitive tariff. Contract terms affect how businesses are exposed to price changes, while the availability of consumption data influences their ability to assess purchasing options and potential investments.
The survey indicates that businesses are dealing with these issues while making wider financial decisions. It does not establish how much investment has been delayed or the financial effect of more difficult budgeting.
The supplied findings also do not show whether respondents reporting high confidence were the same businesses experiencing the greatest disruption to planning.
Businesses want more flexible purchasing options
More than half of respondents, 57%, wanted more flexible energy contracts. A further 53% wanted greater support with managing energy risk and 45% wanted help with decarbonisation.
Expectations of growing demand for contract flexibility varied by sector.
Three quarters of education respondents said flexible contracts would become more important over the next two years. The proportion was 70% in architecture, engineering and building, and around two thirds in retail, catering and leisure.
EDF said traditional fixed-term arrangements continued to meet most organisations’ current needs, but the findings pointed towards demand for a wider range of purchasing and risk-management options.
The research does not specify which contractual features respondents valued most. Demand for flexibility should therefore not be read as a clear preference for any single purchasing model or level of exposure to wholesale prices.
Energy risk management extends beyond renewal
Almost half of respondents, 48%, said they already managed energy risk continuously rather than mainly when their contracts came up for renewal.
That finding suggests regular monitoring is already part of energy management for a substantial share of the businesses surveyed.
EDF linked the changing requirements to electrification and the UK government’s Clean Power 2030 ambitions. As businesses change how they consume electricity, purchasing arrangements, operational requirements and investment plans may need to be considered together.
Christopher Dalley, EDF’s director of business and wholesale services, said decisions about buying and using energy would increasingly influence business competitiveness.
“Businesses that understand their energy position can make better investment decisions, use greater flexibility and prepare for electrification,” he said.
The supplied research summary does not include the sample size, fieldwork dates, respondent roles or survey methodology. Those details are needed to assess how representative the findings are of UK businesses and how much weight to place on comparisons between sectors.
