Market Updateofgemprice-capsmeenergy-renewals

April 2025: The Cap Bites and the Renewal Season Peaks

As the higher price cap took effect and the new financial year began, April concentrated bill pressure and contract renewals into a single, demanding window. We look at how the month tested advisors and their clients.

CAMB Editorial

Editorial Team

5 min read

April is always a pivotal month in the energy calendar, and 2025 was no exception. The higher price cap confirmed in February took effect, lifting domestic bills just as the new financial year prompted businesses across the country to review their costs. The result was a concentrated burst of activity — and pressure — that tested advisors and their clients alike.

The Cap Bites

With the typical domestic bill now at its highest in a year, the wholesale costs underpinning the rise were equally present in commercial pricing. Business customers approaching renewal found the market less forgiving than it had been six months earlier, and the gap between a well-timed fixed contract and a lapsed, out-of-contract arrangement widened accordingly.

6.4%
Rise in the Domestic Price Cap from April 2025
Taking the typical annual dual-fuel bill to £1,849.

The Renewal Season Peaks

The start of the financial year brought the seasonal surge in commercial renewals. Many businesses align their energy contracts with their accounting year, and the combination of fresh budgets and recently arrived winter bills made April a moment of unusual receptiveness. For brokers with a well-organised pipeline, it was among the most productive periods of the year; for those caught reactive, it was a scramble.

The out-of-contract trap

Customers who let contracts lapse during the busy spring window rolled onto deemed rates carrying a steep premium. In a market that had just risen, the cost of inaction was sharper than ever.

Lessons from a Demanding Month

April 2025 reinforced a lesson that runs through the whole year: preparation beats reaction. The advisors who had mapped their clients' contract end dates and engaged them well in advance navigated the month calmly, securing terms before the renewal crush. Those who waited found themselves competing for attention in the busiest weeks of the year.

  • Map contract end dates and engage clients 90 to 120 days ahead of expiry
  • Prioritise out-of-contract sites, where the premium and the urgency are greatest
  • Prepare options in advance so customers can decide quickly during the busy window
  • Treat the renewal season as a planned campaign, not a reactive rush

Key Takeaways

  • The 6.4% cap rise took effect, lifting bills and tightening commercial pricing
  • The new financial year concentrated SME renewals into a demanding spring window
  • Out-of-contract sites faced a steep premium in a market that had just risen
  • Advisors with an organised, proactive pipeline outperformed reactive competitors

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