UK businesses confront rising energy levies and higher power costs

The Green Gas Levy (GGL) is a UK government charge applied to business gas meters to fund the Green Gas Support Scheme, which injects biomethane—produced from farm and food waste—into the national gas grid. Applied as a fixed daily charge per meter, the levy disproportionately affects sites with low gas consumption and is set annually by the Department for Energy Security and Net Zero and administered by Ofgem. The charge has been in place since November 2021 and is expected to grow as more biomethane plants come online.

At the same time, businesses across the UK are seeing overall energy costs increase. Drivers include higher demand for electricity, ageing grid infrastructure, weather‑related supply disruptions, and broader economic pressures such as fuel prices and inflation. These rising costs compress profit margins, complicate budgeting, and can delay investment or expansion plans. Companies are therefore reassessing how they use energy, aiming to reduce waste and build more resilient power strategies.

Both the expanding GGL and broader energy price pressures mean that UK firms must monitor non‑commodity charges on their utility bills and consider measures to mitigate financial impacts.