Charities hoping for reduced tariffs from energy companies, report says

29 Sep 2025 News

Credit: NicoElNino/ Adobe Stock

Many charities are hoping to be offered reduced tariffs by energy companies as expenses rise and demand for their services grow, according to a new report.

Research published today by Cadent, the UK’s largest gas distribution network, and Thinks Insight & Strategy, says that charities are being strained by rising energy costs and increased demand for their services.  

More than half (52%) of the around 150 charities surveyed feared they may be forced to close within the next five years, while three in five said that heating had become a luxury for some organisations.

Most (57%) said that rising energy bills were undermining the services they provide to vulnerable communities, while more than two in five (41%) respondents reported reducing or changing the services they offer as a result of increasing costs.

Meanwhile, with one third (34%) of charities said that sustainability is no longer a priority due to cost pressures.

Many of the charities responding said that they would appreciate tailored advice on how to manage their energy bills, while also seeking options to help small organisations fund energy costs and sustainable changes.

The report says: “Charities in particular are hopeful that energy companies could offer reduced tariffs or additional grants as part of their CSR initiatives.

“While they don’t expect energy to be free, a more affordable rate would make a positive impact, benefiting both the charity and the energy company’s reputation by contributing to the community.”

Collaboration between charities and energy companies ‘essential’

David Bridson, head of campaigns and research at YMCA, England and Wales, said: “We’ve long understood the critical role that charities play in meeting the needs of our most vulnerable communities, and this research underscores the urgency of tackling rising energy costs.

“These findings highlight the need for meaningful action and practical solutions to help charities maintain their vital services. Collaboration between policymakers, energy providers, and community organisations is essential to navigating this crisis effectively and ensuring the sustainability of the support our communities rely on.”

Paul Walmsley, co-founder of Social Brokers, a community interest company, said rising energy costs had made it difficult to keep up with demand.

“We work with several local charities who are also feeling the pinch and those are the ones who could maximise their offer if they didn’t have to pay out energy bills of over £3,000 per month, equivalent to the cost of hiring two essential support workers who could be providing life-changing services to those in need,” he said.

 “Year-round energy challenges amplify the strain. In summer, we’re providing air conditioning to keep our spaces usable, while the need to heat our buildings in winter can feel like a trade-off for providing essential services.

“These costs prevent us from prioritising sustainability goals and meeting the growing needs of our community.”

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