Managing energy costs in an uncertain market: Support for small businesses, charities and community groups in Fife

As energy prices continue to fluctuate and market conditions shift, many organisations across Fife – from small businesses to community-run venues and local charities – are feeling uncertain about what comes next.

Through Climate Action Fife, we can support local organisations in building resilience, reducing costs and navigating the complex energy landscape.

OFGEM’s latest update Managing business energy costs in an uncertain market – OFGEM 31 March 2026 provides valuable insights that can help your organisation make informed decisions.

Understanding what makes up your energy costs

Your energy bill is made up of several components, including wholesale energy costs, network charges, and environmental programmes. Wholesale prices (the cost your supplier pays to buy energy) are particularly volatile. These costs typically make up around 40% of an electricity bill and 60% of a gas bill.

This year, network costs are increasing to support upgrades to the UK’s energy infrastructure. Meanwhile, global events, including instability in the Middle East, continue to impact wholesale energy prices.

For many organisations in Fife, these changes may not lead to immediate increases, as contract lengths are returning to the standard 3–5 years. OFGEM estimates that across the UK fewer than 10% of businesses will need to recontract in March or April, with more facing renewal later in the year.

Is your contract ending soon?

If your energy contract is ending soon, there are a few things you should do.

Start the conversation early

If your fixed contract is coming to an end, speak to your supplier about what options are available. Organisations working with energy brokers can ask them to negotiate on your behalf.

Consider whether short or long term deals suit you best

In some cases, especially for charities and small community venues operating on tight budgets, it might be more cost‑effective to temporarily remain on a deemed or out‑of‑contract rate if longer-term deals are currently too expensive.

Be aware of common contract risks

Before signing anything, keep the following in mind:

• Suppliers may request security deposits
• Suppliers do not have to offer a contract to every organisation
• Business energy contracts have no cooling-off period, always check terms carefully
• If you discuss a contract by phone, request written confirmation
• Be alert for fraud and always verify any unexpected contact

Greener Kirkcaldy can help you understand the contract options being offered and what the risks mean in practice for your type of organisation.

Staying connected to your energy supplier

Accurate billing is essential for budgeting, especially for community-run organisations and charities where cashflow can be tight. OFGEM recommends:

• Providing regular meter readings and installing smart meters
• Keeping your contact details up to date
• Talking directly to your supplier if you have trouble managing your bill

Your supplier must treat you fairly. They can also provide advice on how to use energy more efficiently and that’s an area where Greener Kirkcaldy and Climate Action Fife can provide extra, hands‑on support.

Support available for organisations in Fife

OFGEM lists several ways you can get help:

• Reputable energy brokers who can manage conversations with suppliers
• Trade associations, consumer groups, and charities offering tailored advice
• The Energy Ombudsman, who can help resolve disputes with suppliers

In addition, your organisation may be eligible for financial assistance and grants. As well as schemes aimed at improving energy efficiency, decarbonisation or reducing long-term costs.

We can support you with:

• Identifying grants to increase energy efficiency and cut your carbon footprint
• Practical measures to reduce energy consumption
• Understanding bills, tariffs, contracts, and metering
• Training staff and volunteers to be aware of energy efficiency
• Your plans to reduce emissions and achieve Net Zero
• Developing long‑term sustainability and cost‑saving plans

This support can make a big difference to your carbon footprint as well as your energy bills.

How we can help

As part of our outreach and support for the local community, we can:

• Review your current energy use and costs
• Help you navigate contract renewals and understand supplier terms
• Offer tailored workshops or training sessions for staff, volunteers or trustees
• Provide practical advice on reducing consumption, from low‑cost actions to longer‑term improvements
• Signpost you to local or national funding opportunities to help you to decarbonise your building
• Support you in building long‑term resilience to energy market uncertainty

This guidance is designed to help organisations stay financially stable while contributing to a more sustainable, climate‑friendly Fife.

Additional support / links

• Smart Meters – the Smart Energy GB website explains the government’s rollout plan.
• Your energy bill – find out more about the costs included in your bills.
• Problems managing your bills? – Get help if your business cannot afford its energy bills.

Get in touch

If you are a small business, charity, or community group in Fife and want help understanding your energy options – or if you are planning improvements and need support – we are here to help. Please get in touch with Robert Keddie, Energy Advisor (Business & Community).

Call 07849 647083 or email robert@greenerkirkcaldy.org.uk.

Sign up to the Climate Action Fife newsletter for businesses and community groups for updates on how to make your organisation more climate-friendly.