Cut retailers’ energy bills to ease plight of shoppers

By the Editorial Team · Friday, October 9, 2026

Retailers in the UK are warning that a 16% rise in electricity costs in 2026, largely due to government-imposed charges, could force them to increase prices for consumers. The British Retail Consortium is urging the government to shift renewable energy policy costs from electricity bills to central funding to prevent further financial strain on businesses and households.

Retailers in the United Kingdom have warned of a significant rise in energy costs that could lead to higher prices for consumers unless the government intervenes. According to the British Retail Consortium (BRC), electricity expenses for high street businesses are set to increase by 16% in 2026, amounting to an additional £440 million in costs. The majority of this rise is attributed to government-imposed charges rather than fluctuations in the global energy market.

Helen Dickinson, chief executive of the BRC, highlighted that these escalating energy bills are contributing to the increased cost of everyday essentials for shoppers. She called on Chancellor John Healey to take measures aimed at reducing policy levies and stabilizing network charges, which she identified as key drivers behind the surge in energy expenses for retailers.

The analysis from the BRC indicated that capacity market charges would see a £63 million increase. These charges are fees added to electricity bills to cover costs related to maintaining power generators—primarily gas and nuclear—that may be called upon during periods of high demand. Additionally, the cost associated with the Renewables Obligation, a government scheme designed to subsidize green energy, has surged by £15 billion. Another renewable energy initiative, Contracts for Difference, is expected to impose a further £45 million in costs on retailers.

Retailers argue these rising energy charges come on top of other growing expenses, including higher wage bills driven by the government’s increase in the minimum wage and a 1.2% rise in employer national insurance contributions subsequently introduced by the Labour government.

The BRC is urging the Chancellor to consider removing the costs linked to renewable energy policies from electricity bills and instead finance them through central government funding. The trade body contends that this approach could alleviate financial pressure on retailers, enabling them to maintain more stable prices for consumers and safeguard employment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.