Energy Prices Back in the Spotlight: What the Hormuz Situation Means for UK Businesses
- 5 days ago
- 3 min read
Energy costs are back in the headlines and for UK businesses, that’s rarely good news.
Recent developments around the Strait of Hormuz tensions have raised fresh concerns about global energy supply. As one of the world’s most important shipping routes for oil and liquefied natural gas, any disruption in this region can send shockwaves through global markets.
And as we’ve seen time and time again, when wholesale markets react…business energy bills tend to follow.
Why this matters for UK business energy prices
The UK is particularly exposed to global energy price fluctuations. Even if supply disruptions happen thousands of miles away, the impact is felt quickly through:
Rising wholesale gas and electricity prices
Increased volatility in supplier pricing
Reduced availability of competitive fixed-rate contracts
For many businesses—especially in manufacturing, hospitality, and other energy-intensive sectors—this creates a difficult environment to plan and operate in.
In short: uncertainty increases, and costs become harder to control.
Can you predict what happens next?
Not reliably.
Energy markets are influenced by a complex mix of geopolitics, supply chains, weather, and global demand. While headlines can signal potential changes, even experts struggle to accurately predict where prices will move next.
That’s why the most effective strategy isn’t trying to “time the market”—it’s about reducing your exposure to it.
What should your business be doing right now?
1. Check if you’re on out-of-contract rates
If your contract has expired, you could be on deemed or variable rates—often the most expensive tariffs available.
In a rising market, these rates can increase quickly, leaving you exposed to sudden cost spikes.
2. Consider fixing your energy rates
Fixing your rates - either fully or partially - can provide protection against further increases. Alternatively, consider short term 3 or 6 month deals.
It’s not about catching the lowest possible price. It’s about creating stability and predictability in your costs.
3. Review your wider utility spend
Energy is just one part of the picture.
Many businesses are also overpaying for:
Business water
Broadband and connectivity
Waste services
When combined, these inefficiencies can significantly impact your bottom line—especially during periods of rising costs.
4. Don’t let switching become a blocker
One of the biggest reasons businesses overpay?They simply don’t have the time to deal with switching suppliers.
Comparing tariffs, negotiating contracts, handling admin—it’s time-consuming and often pushed aside in favour of day-to-day operations.
How Smarta Switch helps
At Smarta Switch, we take that entire process off your plate.
We:
Compare energy suppliers across the market
Secure competitive fixed or flexible contracts
Manage the switching process end-to-end
Identify savings across energy, water, and connectivity
All with minimal input required from you.
The bigger picture: control what you can
Global events like the situation in the Strait of Hormuz are outside your control. But how your business responds isn’t.
Taking a proactive approach now—before price increases fully filter through—can help protect your margins, improve cost certainty, and reduce risk in an unpredictable market.
Get a free cost check
If you’re unsure whether you’re on the right contract, we can help.
Simply send us a copy of your latest bill and a letter of authority, and we’ll provide a clear, no-obligation review of where you could save.
Final thought
Energy markets will always fluctuate. Smart businesses don’t try to predict them: they prepare for them.
