2025 Market Predictions That Every Energy Broker & Supplier Should Know About

The energy industry is on the brink of some big changes as we move closer to 2025. From smarter pricing systems in the UK to shifting energy policies in the US, the landscape is evolving fast. For energy suppliers staying competitive will require more than just keeping up—it means anticipating these trends, understanding the challenges, and finding ways to turn them into opportunities. That’s where strategic planning and the right tools come into play.

Let’s break down the biggest trends, challenges, and opportunities so you can get ready for the year ahead.

1. Smarter Pricing with Market-Wide Half-Hourly Settlement (MHHS) in the UK

Market Wide Half-Hourly Settlement (MHHS) is set to roll out fully by 2026, but 2025 will see a major push. This system will provide real-time, accurate energy usage data, paving the way for smarter billing and predictive pricing models.

What this means for you:

Dynamic Pricing Becomes the Norm: Half-hourly data lets you offer time-of-use tariffs that reward customers for using energy during off-peak times. Suppliers like Octopus Energy are already showing how this can drive customer engagement and cost savings.

• AI-Powered Innovation: Accurate, real-time data allows you to leverage AI-driven tools for smarter pricing, load management, and demand forecasting.
• Renewable Energy Integration: Better forecasting means you can seamlessly integrate renewable energy sources and battery storage into your offerings.
• The Challenge: Aligning your systems and processes to make the most of this new data will take time, but the payoff will be worth it.

2. Tighter Broker Regulations = Greater Transparency Needed

Stricter rules around third-party intermediaries (TPIs) and energy brokers are likely to hit in 2025, with a focus on transparency, consumer protection, and compliance.

What this means for you:

• Trust is a differentiator: Meeting compliance standards builds trust with customers who are looking for reliable, transparent suppliers.
• Sustainability is a selling point: Brokers are starting to offer carbon reduction advice, and customers are increasingly choosing suppliers based on more than just price. Position yourself as a sustainability leader to stand out.

The challenge to overcome: 

Compliance will require some investment, but it’s also a chance to strengthen your reputation and relationships.

3. Energy Costs and the Push for Renewables

Energy costs are expected to stabilize (or even decrease slightly) as renewable energy becomes more prominent and grid investments reduce reliance on fossil fuels. Residential energy caps in the UK will also drive competition among suppliers.

What this means for you:

• Competitive advantage: Lower costs and greater competition mean it’s time to stand out. Offer attractive rates, creative tariffs, and value-added services to win and retain customers.
• Confident pricing models: With market volatility settling, you can offer clearer, more stable pricing—a win for both you and your customers.
• Grid improvements: Investments in renewable energy and battery storage are creating a more stable, sustainable supply to meet demand.

The challenge to overcome: 

While long-term costs are falling, initial investments in clean energy tech can still be significant.

4. US Energy Policies and Post-Election Shifts

The outcome of the 2024 US election could bring big changes to energy policy. A less climate-focused administration may cut subsidies for green energy, slowing the transition to renewables.

What this means for you:

• Economic opportunities: Even without regulatory support, renewables remain cost-effective. Highlight the economic benefits of clean energy to win over price-sensitive customers.
• Battery and alternative generation growth: Consumers are increasingly investing in solar, wind, and battery storage to gain energy independence. Suppliers who support these solutions will gain an edge.
• Data center partnerships: Tech giants like Meta and Amazon are searching for sustainable energy solutions to power their growing data center needs. Partnering with them could drive significant long-term growth.

The challenge to overcome:

Policy uncertainty can create short-term volatility, so staying agile and prepared is key.

5. Smart Meters Show Slow Progress, But Big Potential

Despite clear benefits like accurate billing, energy efficiency, and improved grid stability, smart meter adoption remains slow in both the UK and the US. High upfront costs, consumer hesitation, and a lack of widespread education are the biggest hurdles. Many customers still don’t fully understand the value that smart meters can bring to their daily energy usage, leaving adoption rates below expectations.

What this means for you:

• Educate your customers: Help customers see the long-term value of smart meters—more control over their usage, lower bills, and a greener grid.
• Lead in deregulated markets: States in the US like Texas are already seeing smoother adoption, driving innovative pricing and incentives. Learn from these successes to stay ahead.

The challenge to overcome: 

Overcoming resistance will take effort, but the benefits of smart meters make it worth the push.

6. Data Center Energy Demand: An Emerging Opportunity

The rapid growth of data centers, fueled by cloud services, AI, and the ever-increasing demand for big data, is driving energy consumption to unprecedented levels. These massive facilities require constant, reliable energy to operate, putting significant pressure on the grid. Approval processes for new data center projects are speeding up in regions like the US, driven by the economic benefits and influence of the tech industry.

What this means for you:

• Invest in efficiency: Data centers need sustainable and efficient energy solutions. Offering clean, reliable energy can position you as a key partner.
• Long-term partnerships: Big players like Meta and Amazon are actively looking for ways to self-supply energy—but they still need reliable partnerships to get there.

The challenge to overcome: 

Balancing rising demand with grid stability requires forward-thinking strategies.

Get Ahead of 2025 with POWWR

The energy market is evolving fast, and staying competitive means being ready for what’s next. At POWWR, we help energy suppliers navigate these trends with software that will keep your business moving forward. From smarter pricing models to renewable energy integration, our tools are designed to help you adapt, innovate, and grow.

Ready to future-proof your strategy? Book a demo with POWWR today and see how we’re helping energy suppliers stay ahead in 2025 and beyond.