Why energy costs are holding UK businesses back

About this episode

The episode discusses the impact of high energy costs on UK businesses and explores potential reforms in the energy market.

As geopolitical tensions continue to disrupt global energymarkets, UK businesses are facing persistently high energy costs and renewed uncertainty over supply. Against this backdrop, questions are growing about whether the UK’s energy system is fit for purpose - and why our industrial electricity prices remain among the highest in the G7. In this episode, Alex Hall‑Chen (IoD Principal Policy Advisor for Energy and Sustainability) joins host Ben Walker to examine what the current energy crisis means for UK business. Together, they explore why UK energy prices are so high, how exposed businesses are to future shocks, and why short‑term support measures like the British Industry Competitiveness Scheme fail to address the underlying problems in the energy market. They also discuss the case for structural reform - including decoupling electricity prices from gas - and what government must do to deliver a more affordable, secure and competitive energy system.

People in this episode

Host: Ben Walker

Guest: Alex Hall‑Chen

Topics covered

• energy costs
• UK businesses
• geopolitical tensions
• energy market
• electricity prices
• government policy

Keywords

• energy crisis
• UK energy prices
• industrial electricity
• British Industry Competitiveness Scheme
• energy system reform

Mentioned in this episode

Organizations: Institute of Directors

Places: UK, G7

More episodes of Director Podcast

• The King’s Speech, political instability and the outlook for business · May 15, 2026 · 38 min
• Is the Government’s growth plan really working? · April 7, 2026 · 38 min
• Unpacking the Spring Forecast · March 4, 2026 · 22 min
• Can the UK trade with everyone? · February 24, 2026 · 34 min
• NEDs reimagined: a post-Higgs review · January 15, 2026 · 33 min
• The year in policy: 2025 · December 10, 2025 · 29 min