Energy Costs Managed - Energy Hub , Energy News

Welcome to our Weekly Newsletter 29th May 2026

Fri, 29 May 2026 14:46:59 +0000

Welcome to Our Weekly Newsletter!

At Energy Costs Managed, we help businesses take a more strategic and informed approach to energy procurement, contract management and cost reduction.

Insight of the Week:

Why Energy Efficiency is Becoming a Procurement Priority in 2026

With wholesale energy markets continuing to fluctuate many UK businesses are now looking beyond contract pricing alone and placing greater focus on reducing overall energy demand.

Improving energy efficiency is increasingly being viewed as a key part of long-term procurement strategy. From upgrading lighting systems and improving heating controls to monitoring out-of-hours consumption, businesses are identifying practical ways to reduce usage before entering new energy agreements.

Lower consumption can provide greater flexibility when negotiating contracts, reduce exposure to market volatility and improve forecasting accuracy. For multi-site organisations in particular, energy reduction initiatives are becoming closely linked with wider operational and financial planning.

As businesses continue to balance rising operational costs with sustainability targets, energy efficiency is expected to remain a major focus throughout 2026.

Wholesale Energy Prices

Wholesale energy markets continued to show movement this week, with gas and electricity prices reacting to ongoing supply factors, trading activity and broader market conditions.

If you would like to understand how current market conditions may impact your business or discuss your upcoming renewal, please get in touch with our team to arrange a review.

Week to date - 21st May to 28th May

Gas Prices for July 2026 are 113.43p per therm

September 26 -reduced from 121.39p per therm to 114.83p per therm

December 26 - reduced from 125.19p per therm to 119.78p per therm

March 27 - reduced from 113.33p per therm to 108.34p per therm

Power Prices for July 2026 are £100.43 per MWh

September 2026 - reduced from £101.86 per MWh to £100.25 per MWh

December 2026 - reduced from £104.94 per MWh to £104.66 per MWh

March 2027 - reduced from £99.310 per MWh to £99.00 per MWh

Please note that due to the ongoing volatility of wholesale energy prices, Energy Costs Managed cannot guarantee the accuracy of the above figures. These prices are intended as a visual guide to reflect current market trends and should not be taken as financial advice.

Topic of The Week:

Why Contract Timing Matters More Than Ever

In volatile energy markets, the timing of a contract renewal can have a significant impact on overall business energy costs.

Many businesses leave renewals until the final weeks of their contract, limiting the opportunity to monitor market movements or secure pricing during favourable trading periods. Reviewing contracts earlier can provide greater flexibility, stronger negotiating power and more time to assess different procurement options.

Key considerations when approaching renewal include:

Current wholesale market conditions
Contract end dates and notice periods
Business growth or operational changes
Energy usage trends
Fixed versus flexible purchasing options

With market conditions continuing to change rapidly, proactive planning is becoming increasingly important for businesses seeking greater cost control and budget certainty.

Week Ahead

Market attention next week is expected to remain focused on European gas storage levels, renewable generation forecasts and international LNG supply availability.

Traders will also continue monitoring weather patterns across Europe, maintenance activity within energy infrastructure and wider geopolitical developments which may influence short-term wholesale pricing movements.

As summer demand patterns begin to develop, market volatility is expected to remain present across both gas and electricity trading.

Quick Take

While wholesale energy prices remain significantly below the record highs experienced during the energy crisis, markets continue to react quickly to supply concerns, weather changes and global developments.
For UK businesses, maintaining visibility over contract timelines, procurement strategy and energy usage remains essential in managing costs effectively within an unpredictable market environment.

Welcome to our Weekly Newsletter 22nd May 2026

Thu, 28 May 2026 15:37:31 +0000

Welcome to Our Weekly Newsletter!

At Energy Costs Managed, we help businesses take a more strategic and informed approach to energy procurement, contract management, and cost reduction.

Insight of the Week:

Why Flexible Energy Purchasing is Gaining Attention in 2026

As wholesale energy markets continue to experience periods of uncertainty, more UK businesses are exploring flexible energy purchasing strategies to improve budget control and reduce exposure to sudden market spikes.

Rather than locking all energy usage into a fixed contract at one point in time, flexible purchasing allows businesses to buy energy in smaller volumes across different periods. This approach can help spread risk and create opportunities to secure more competitive pricing when market conditions improve.

Recent fluctuations in gas supply, changing renewable output levels, and ongoing geopolitical uncertainty have all contributed to increased interest in flexible procurement options among commercial energy users.

For businesses with high consumption or multiple sites, reviewing procurement strategy has become an important part of wider financial planning.

Wholesale Energy Prices

Wholesale energy markets remained active this week, with both gas and electricity contracts continuing to respond to wider market developments and supply sentiment.

If you would like to understand how current market conditions may impact your business or discuss your upcoming renewal, please get in touch with our team to arrange a review.

Week to date (14th May to 21st May)

Gas Prices for June 2026 increased from 116.278p per therm to 120.820p per therm

September 26 - increased from 116.220p per therm to 121.390p per therm

December 26 - increased from 118.30p per therm to 125.190p per therm

March 2027 - increased from 109.190p per therm to 113.330p per therm

Power Prices for June 2026 increased from £99.17 per mwh to £102.20 per mwh

September 2026 - increased from £99.810 per mwh to £101.86 per mwh

December 2026 - increased from £100.930 per mwh to £104.94 per mwh

March 2027 - increased from £96.320 per mwh to £99.310 per mwh

Topic of The Week:

Fixed vs Flexible Energy Contracts: Which is Right for Your Business?

Choosing the right energy contract structure can make a significant difference to business energy costs.

Fixed contracts provide pricing certainty by locking rates for an agreed period, helping businesses manage budgets with greater confidence. Flexible contracts, on the other hand, allow energy to be purchased gradually over time, giving businesses the opportunity to react to changing market conditions.

The right option often depends on:

Business size and energy usage
Appetite for market risk
Budget forecasting requirements
Contract timing
Operational flexibility

As energy markets remain unpredictable, reviewing contract strategy before renewal dates has become increasingly important for UK businesses.

Week Ahead

Market focus next week is expected to remain on European gas storage levels, renewable generation forecasts, and international LNG availability. Traders will also continue monitoring wider commodity markets and geopolitical developments which may influence wholesale pricing trends.

Short-term market volatility is expected to continue as summer trading activity develops.

Quick Take

Wholesale energy markets remain sensitive to global supply developments, infrastructure maintenance, and changing weather conditions. While pricing remains below the extreme highs seen during the energy crisis, ongoing volatility highlights the importance of proactive energy management.
Reviewing procurement strategy, monitoring renewal timelines, and understanding contract structures continue to play a key role in helping UK businesses manage energy costs effectively.

Welcome to our Weekly Newsletter 8th May 2026

Fri, 08 May 2026 13:15:00 +0000

Welcome to Our Weekly Newsletter!

At Energy Costs Managed, we help businesses take a more strategic and informed approach to energy procurement, contract management, and cost reduction.

Insight of the Week:

Market Stability Returns - But Volatility Still Creates Risk and Opportunity

With wholesale energy markets continuing to react to ongoing geopolitical tensions, LNG supply uncertainty, and fluctuating demand forecasts, businesses are once again being reminded how quickly costs can shift. While prices have stabilised compared to previous peaks, the market remains highly reactive, making contract timing and procurement strategy more important than ever.

For many UK businesses, reviewing contracts ahead of renewal and exploring fixed or flexible purchasing options could deliver substantial savings and greater budget certainty heading into the second half of 2026.

Wholesale Energy Prices

Wholesale energy markets have continued to fluctuate this week, with most key gas and power contract periods seeing modest reductions following recent volatility.

If you would like to understand how current market conditions may impact your business or discuss your upcoming renewal, please get in touch with our team to arrange a review.

Week to date (30th April to 7th May)

Gas Prices for June 2026 reduced from 112.880p per therm to 106.870p per therm

September 26 - reduced from 113.040p per therm to 106.920p per therm

December 26 - reduced from 117.680p per therm to 111.750p per therm

March 2027 - increased from 109.640p per therm to 109.70p per therm

Power Prices for June 2026 reduced from £93.120 per mwh to £91.41 per mwh

September 2026 - reduced from £94.040 per mwh to £92.620 per mwh

December 2026 - reduced from £98.630 per mwh to £95.840 per mwh

March 2027 - reduced from £95.410 per mwh to £90.170 per mwh

Topic of The Week:

Why More Businesses Are Reviewing Energy Contracts Early

A growing number of businesses are moving away from the traditional “wait until renewal” approach and instead reviewing contracts 6-12 months in advance.

Early market engagement allows businesses to benchmark rates, assess supplier appetite, and secure contracts during favourable trading windows rather than reacting under pressure closer to renewal dates.

For energy-intensive sectors in particular, even small reductions in unit rates can have a significant impact on annual operating costs. Businesses that actively monitor the market are placing themselves in a far stronger position to manage overheads and protect profitability.

Client Success Story

Another big win for one of our new clients!

As energy costs continue to remain highly volatile and a major concern for business owners across the UK, we’ve just helped a business secure a new gas supply contract delivering over £3,000 in annual savings, which equates to a 43.79% reduction against their current rates.

In ’s market, where energy prices continue to place pressure on overheads, achieving this level of reduction can make a real difference to cash flow, forecasting, and long-term budgeting. By reviewing their existing contract and benchmarking across a wide range of suppliers, we were able to identify a significantly more competitive rate without compromising on supply or service.

If your business hasn’t reviewed its energy contract recently, there’s a strong chance you could be overpaying.

See whether your business could reduce energy costs before renewal

Week Ahead

This week, market attention will remain focused on European gas storage levels, ongoing LNG import activity, and any developments impacting global supply routes. Traders will also be watching economic data releases and inflation indicators closely, as wider financial markets continue to influence energy pricing sentiment.

Businesses approaching renewal over the next 12 months should continue monitoring opportunities closely, as short-term market dips can still create attractive purchasing windows despite ongoing volatility.

From the Energy Hub

Energy Contract Renewal Explained: What Happens If You Miss It?

If your business energy contract is coming to an end, the renewal process is not something to leave to chance or delay until the last minute.

Many businesses assume that if they don’t actively renew, nothing major will change immediately. In reality, missing your renewal window can have a direct and often significant impact on cost, structure, and long-term flexibility.

Why Energy Contract Renewal Matters

Quick Take

Despite ongoing market volatility, businesses reviewing their energy contracts early are still seeing savings opportunities and gaining greater budget certainty ahead of future price fluctuations.

Welcome to our Weekly Newsletter 15th May 2026

Fri, 08 May 2026 13:15:00 +0000

Welcome to Our Weekly Newsletter!

At Energy Costs Managed, we help businesses take a more strategic and informed approach to energy procurement, contract management, and cost reduction.

Insight of the Week:

Market Volatility Returns as Traders React to Supply Uncertainty

Wholesale energy markets experienced renewed volatility this week, with gas and electricity prices fluctuating sharply in response to ongoing supply concerns across Europe. Week on week increases in wholesale energy costs are continuing to place pressure on businesses to manage budgets effectively and prepare for their upcoming contract renewals.

Planned maintenance in Norwegian gas infrastructure and uncertainty around global LNG availability have continued to influence trader sentiment, keeping forward contracts elevated despite softer seasonal demand.

Wholesale Energy Prices

Wholesale energy markets have remained volatile this week, with most key gas and power contract periods recording further increases following recent market uncertainty.

If you would like to understand how current market conditions may impact your business or discuss your upcoming renewal, please get in touch with our team to arrange a review.

Week to date (30th April to 7th May)

Gas Prices for June 2026 increased from 106.870p per therm to 116.278p per therm

September 26 - increased from 106.920p per therm to 116.220p per therm

December 26 - increased from 111.750p per therm to 118.30p per therm

March 2027 - reduced from 109.70p per therm to 109.190p per therm

Power Prices for June 2026 increased from £91.41 per mwh to £99.17 per mwh

September 2026 - increased from £92.620 per mwh to £99.81 per mwh

December 2026 - increased from £95.840 per mwh to £100.930 per mwh

March 2027 - increased from £90.170 per mwh to £96.320 per mwh

Topic of The Week:

What is Energy Procurement and why does it matter for UK businesses?

Energy costs are one of the largest ongoing expenses for many UK businesses. Whether you operate a small office, a retail premises, a warehouse or multiple commercial sites, the way you purchase your electricity and gas can have a significant impact on your overall operating costs. This is why energy procurement has become increasingly important for businesses across the UK.

Energy procurement is the process of sourcing, negotiating and managing business energy contracts. Rather than simply accepting a renewal quote from your current supplier, procurement involves taking a strategic approach to buying energy.

Why Energy Procurement Matters

Week Ahead

The market focus will remain on European gas flows, storage refill rates, and weather patterns affecting renewable generation. Traders will also be watching for any geopolitical developments that could impact LNG supply routes or wider commodity markets. Short-term price swings are expected to remain likely as liquidity tightens heading into summer.

From the Energy Hub

Out of Contract Energy Rates Explained: What Every Business Needs to Know

Out-of-contract energy rates are the energy prices that are applied when a business does not have an active energy supply contract in place. Instead of a contracted price, the supplier applies a default tariff until a new contract is agreed.

These rates are typically significantly higher than standard contract pricing and are not designed for long-term use. They exist as a temporary arrangement to ensure supply continues while a new agreement is put in place.

Here’s what you need to know

Quick Take

The wholesale energy market has shifted this week from a relatively stable pricing position last week. While wholesale energy prices remain below the extreme peaks seen during the 2022 energy crisis, recent wholesale increases are a reminder that energy costs in the UK are still heavily influenced by global events and global gas prices. Energy procurement and contract management remain key for managing risk in the current climate.

Welcome to our Weekly Newsletter 1st May 2026

Fri, 01 May 2026 13:09:05 +0000

Welcome to Our Weekly Newsletter!

At Energy Costs Managed, we are energy consultants focused on helping businesses take a more strategic and informed approach to energy procurement.

Wholesale energy prices have moved higher this week. However, a more significant issue for many businesses is not the wholesale market itself, but how energy contracts are managed.

A large proportion of overspending continues to result from avoidable procurement decisions rather than actual consumption.

Insight of the Week:

It’s not just what you pay-it’s how you buy.

While energy suppliers prices have eased slightly over recent weeks, underlying market risk remains, particularly around gas supply and longer-term pricing.

We continue to see businesses fall into the same avoidable patterns:

Locking in contracts at suboptimal points in the market cycle
Missing short-term pricing opportunities
Being moved onto expensive out-of-contract or default rates without realising

What this means:

Even in periods of relative price stability, poor timing and a lack of forward planning can still result in significantly higher energy costs.

Our view:

If your contract expires within the next 6–12 months, now is the time to begin reviewing options. Waiting until renewal notices arrive often reduces flexibility and limits access to more competitive pricing.

Wholesale Energy Prices

Wholesale prices have increased across all key contract periods this week. This movement has been driven in part by continued geopolitical tensions in the Middle East, which are creating uncertainty around global LNG supply routes and broader market stability.

If you would like to understand how current market conditions may impact your business or discuss your upcoming renewal, please get in touch with our team to arrange a review.

Week to date (23rd April to 30th April 2026)

Gas Prices for June 2026 increased from 109.330p per therm to 112.880p per therm

September 26 - increased from 109.280p per therm to 113.040p per therm

December 26 - increased from 113.680p per therm to 117.680p per therm

March 2027 - increased from 105.190p per therm to 109.640p per therm

Power Prices for June 2026 increased from £91.70 per mwh to £93.120 per mwh

September 2026 - increased from £92.50 per mwh to £94.040 per mwh

December 2026 - increased from £95.48 per mwh to £98.630 per mwh

March 2027 - increased from £91.92 per mwh to £95.410 per mwh

Topic of The Week:

How UK Businesses Waste Money on Energy Contracts

Many businesses assume high energy costs are unavoidable, but in reality, a significant proportion of overspending results from avoidable procurement decisions.

The most common issues include being placed onto expensive default or out-of-contract rates, fixing contracts at the wrong time, and failing to review agreements regularly. In addition, hidden costs within pricing structures are often overlooked, and new premises are frequently left without properly secured contracts.

This means that overpaying is often a procurement issue rather than a consumption issue.

To reduce unnecessary costs, businesses should begin reviewing contracts 6–12 months before renewal, avoid rollover rates where possible, focus on total cost rather than headline unit rates, and take a more proactive approach to energy procurement.

Week Ahead

Weather is expected to remain relatively mild, which should help keep energy demand below seasonal norms.

Ongoing geopolitical uncertainty continues to influence gas markets and add a layer of price pressure.

Despite some short-term stability, volatility is expected to persist.

From the Energy Hub

A deeper look at where businesses go wrong in sourcing and managing energy supply contracts and how to avoid it.

Can you Save?

Quick Take

Energy prices may fluctuate, but poor contract decisions often have a greater long-term impact. Timing and procurement strategy remain just as important as market conditions.

Welcome to our Weekly Newsletter 20th March 2026

Fri, 20 Mar 2026 14:01:00 +0000

Welcome to Our Weekly Newsletter!

At Energy Costs Managed, we pride ourselves on being energy consultants with a difference.

In this weeks newsletter we cover this weeks changes to wholesale energy pricing, the volatility due to the conflict in the middle east, how rising energy prices are impacting pubs and our quick guide to half hourly metering and why it matters for manufacturers.

Insight of the Week:

How Rising Energy Prices Are Impacting UK Pubs - And What You Can Do About It

Energy prices have become one of the biggest challenges facing the UK hospitality sector. For pub owners, rising gas and electricity costs aren’t just an inconvenience they’re directly affecting profitability, pricing, and in some cases even survival.

In this guide, we’ll break down why energy prices are increasing, how they’re impacting pubs across the UK, and most importantly, what you can do to reduce your energy costs.

How Rising Energy Prices Are Impacting UK Pubs - And What You Can Do About It

Wholesale Energy Prices

Wholesale prices have continued to increase and remain highly volatile throughout this week due to the ongoing conflict in the Middle East, concerns over disruptions to global LNG supply routes, and heightened market uncertainty.

If you’d like to know more about how these prices will impact you and your business or would like to know more about when to look to renew your energy supply contract book a call with a member of our team today.

Week to date

Gas Prices for April 2026 increased from 128.50p per therm to 156.640p per therm

Q2 26 - increased from 126.90p per therm to 154.997p per therm

Q3 26 - increased from 122.87p per therm to 149.864p per therm

Q4 26 - increased from 121.81p per therm to 152.310p per therm

Power Prices for April 2026 increased from £97.380 per mwh to £109.720 per mwh

July 2026 - increased from £94.67 per mwh to £107.57 per mwh

December 2026 - increased from £96.57 per mwh to £111.30 per mwh

April 2027 - increased from £75.89 per mwh to £85.160 per mwh

What Is Half-Hourly Metering And Why It Matters for Manufacturers

For UK manufacturers, managing energy costs is no longer just about switching suppliers. With rising prices and increasing pressure on margins, understanding how your energy is measured can make a significant difference.

One of the most important tools in modern energy management is half-hourly metering. But what exactly is it and why should manufacturers care?

What is Half-Hourly Metering And Why It Matters for Manufacturers

Welcome to our Weekly Newsletter 13th March 2026

Fri, 13 Mar 2026 13:21:00 +0000

Welcome to our Weekly Newsletter!

At Energy Costs Managed, we pride ourselves on being energy consultants with a difference.

In this weeks newsletter we cover this weeks changes to wholesale energy pricing, the ongoing volatility with energy prices due to the conflict in the middle east, a guide on using an energy broker or going directly to energy suppliers and how gyms can save on energy in 2026!

Insight of the Week:

Business Energy Broker vs Going Direct to Suppliers Which Is Better for Your Business?

When your energy contract is due for renewal, should you deal directly with suppliers or work with a broker?

Many UK businesses don’t realise the advantages of using a business energy broker to compare multiple suppliers, negotiate better rates, and simplify the entire process.

In our latest blog, we break down:
The pros and cons of using a business energy broker
How to compare business energy suppliers effectively
Why a commercial energy comparison can save your business money
What to expect from professional energy broker services

If your contract renewal is approaching, this guide could help you make a smarter decision.

Business Energy Broker vs Going Direct to Suppliers Which Is Better for Your Business?

Wholesale Energy Prices

Wholesale prices have continued to remain volatile throughout this week due to the ongoing conflict in the Middle East, concerns over potential disruptions to global LNG supply routes, and heightened market uncertainty.

Week to date

Gas Prices for April 2026 decreased from 131.00p per therm to 128.50p per therm

Q2 26 - decreased from 130.00p per therm to 126.90p per therm

Q3 26 - increased from 106.49p per therm to 122.87p per therm

Q4 26 - increased from 106.55p per therm to 121.810p per therm

Power Prices for April 2026 decreased from £102.14 per mwh to £97.380 per mwh

July 2026 - increased from £91.02 per mwh to £94.67 per mwh

December 2026 - increased from £87.30 per mwh to £96.57 per mwh

April 2027 - increased from £70.07 per mwh to £75.89 per mwh

How UK Gyms Can Reduce Energy Bills in 2026

Energy costs remain one of the biggest operational expenses for leisure and fitness facilities across the UK. From large open training spaces and powerful ventilation systems to showers and lighting that run for long hours every day, gyms are naturally energy-intensive environments.

For many gym owners, managing gym energy costs in the UK has become a priority. With electricity and gas prices fluctuating and remaining volatile currently understanding where energy is used and how to optimise it can make a significant difference to profitability.

In this guide, we explore the biggest energy drains in gyms and the most effective strategies to reduce gym electricity bills while maintaining a great member experience.

How UK Gyms Can Reduce Energy Bills in 2026

Welcome to our Weekly Newsletter 6th March 2026

Fri, 06 Mar 2026 14:50:00 +0000

Welcome to our Weekly Newsletter!

At Energy Costs Managed, we pride ourselves on being energy consultants with a difference.

In this weeks newsletter we cover this weeks changes to wholesale energy pricing, the volatility due to the conflict in the middle east, procurement strategies during this time and upcoming TNUoS increases.

Insight of the Week: Business Gas Procurement Strategy amid the Middle East Conflict

Rising geopolitical tensions in the Middle East have once again created uncertainty and a large amount of volatility in global energy markets. For businesses across the UK this uncertainty can quickly translate into volatile gas prices from suppliers and difficult procurement decisions. While the UK sources much of its gas from domestic production and European imports, global conflicts still influence wholesale gas pricing and market stability.

This article explores how the Middle East conflict may impact the UK gas market and outlines practical strategies businesses can adopt to protect themselves.

Business Gas Procurement Strategy Amid the Middle East Conflict: What UK companies need to know

Wholesale Energy Prices

Wholesale prices have increased this week due to geopolitical tensions in the Middle East, concerns over potential disruptions to global LNG supply routes, and heightened market uncertainty driving speculative trading in energy markets.

Week to date

Gas Prices for April 2026 increased from 78.49p per therm to 131.00p per therm

Q2 26 - increased from 77.67 per therm to 130.00 per therm

Q3 26 - increased from 75.77p per therm to 106.49p per therm

Q4 26 - increased from 79.86p per therm to 106.55p per therm

Power Prices for April 2026 increased from £75.10 per mwh to £102.14 per mwh

July 2026 - increased from £69.05 per mwh to £91.02 per mwh

December 2026 - increased from £74.65 per mwh to £87.30 per mwh

April 2027 - increased from £64.53 per mwh to £70.07 per mwh

Upcoming TNUoS Charge Increases on the 1st April 2026

NESO (National Energy System Operator) has confirmed that on average a 64% increase in TNUos Charges for 2026/2027 starting from the 1st April 2026.

The increase is being driven largely by continued and accelerated investment in national grid infrastructure. Substantial upgrades and expansion are required to accommodate growing electricity demand, connect new renewable generation, and strengthen overall network resilience. While these developments are critical to supporting the UK’s long-term energy strategy and transition to net zero, the associated costs are recovered through network charges such as TNUoS.

For business energy customers, this will translate into a notable rise in non-commodity costs and will be passed on particularly in standing charges. As these charges are passed on and applied regardless of consumption levels, organisations may see higher overall electricity costs even if usage remains unchanged. We recommend that businesses review their current contracts, budgets and energy strategies ahead of April 2026 to understand and mitigate the potential financial impact where possible.

Business Gas Procurement Strategy Amid the Middle East Conflict: What UK companies need to know

Wed, 04 Mar 2026 14:20:00 +0000

Business Gas Procurement Strategy Amid the Middle East Conflict: What UK companies need to know

A robust business gas procurement strategy is therefore essential for organisations that want to control costs, manage risk, and maintain operational resilience during periods of geopolitical instability.

This article explores how the Middle East conflict may impact the UK gas market and outlines practical strategies businesses can adopt to protect themselves.

Why the Middle East Conflict Matters to UK Gas Prices

Although the UK imports relatively little gas directly from the Middle East, global gas markets are highly interconnected. When geopolitical tensions disrupt energy trade routes or affect major producers, wholesale gas prices often react quickly.

Several key factors explain the link:

Global LNG Supply Pressure

Countries in the Middle East are major exporters of Liquefied Natural Gas (LNG). Any disruption to production or shipping routes can tighten global supply and increase competition among importing countries.

Shipping and Trade Route Risks

Strategic routes such as the Strait of Hormuz handle a significant portion of global energy shipments. Heightened security risks or shipping delays can push prices upward across global markets.

Market Sentiment and Speculation

Energy markets often respond to perceived risks as much as real supply disruptions. Traders may price in potential shortages, driving wholesale gas costs higher even if supply remains stable.

For UK businesses purchasing energy on flexible or short-term contracts, this volatility can significantly impact operational budgets.

The Current UK Gas Procurement Challenge

Energy managers across the UK are already dealing with an uncertain procurement environment. Since the global energy crisis, businesses have faced:

Increased wholesale price volatility
Greater scrutiny on energy budgets
Pressure to meet sustainability targets

Adding geopolitical uncertainty into the mix means companies must take a more strategic approach to purchasing gas.

Key Business Gas Procurement Strategies

To manage risk effectively, UK companies should consider adopting a structured procurement approach rather than relying on ad-hoc contract renewals.

Monitor Global Energy Markets

Energy procurement is no longer just a local decision. UK companies should track developments that influence global energy pricing, including:

Geopolitical tensions
LNG supply trends
European gas storage levels
Weather forecasts and seasonal demand

Regular market intelligence can help procurement teams identify favourable purchasing opportunities.

Improve Energy Efficiency

Reducing gas consumption remains one of the most effective ways to mitigate price volatility.

Common strategies include:

Upgrading heating and boiler systems
Improving building insulation
Installing smart energy management systems
Conducting energy audits

Lower demand means reduced exposure to market fluctuations.

Explore Hedging and Risk Management

Larger organisations may benefit from financial risk management tools such as hedging strategies. These mechanisms can help stabilise energy costs over time by spreading procurement across different market positions.

While not suitable for every business, they can form part of a broader energy risk management strategy.

Building a Resilient Energy Procurement Plan

In the current geopolitical climate, businesses should treat energy procurement as a strategic function rather than a routine operational task.

A resilient procurement plan typically includes:

Market monitoring and intelligence
Clearly defined risk tolerance levels
Flexible purchasing strategies
Energy efficiency initiatives
Regular contract reviews

By taking a proactive approach, organisations can protect themselves from sudden price movements triggered by global events.

Final Thoughts

The Middle East conflict highlights how global events can rapidly influence energy markets. Even when physical supply to the UK remains stable, price volatility can still impact business budgets.

Companies that implement a structured business gas procurement strategy will be better positioned to manage risk, secure competitive pricing, and maintain financial stability during uncertain times.

Energy market volatility may be unavoidable, but with the right procurement strategy in place, UK businesses can navigate it far more effectively.

Monthly Energy Update: February 2026

Mon, 02 Mar 2026 12:14:00 +0000

Welcome to our monthly update

At Energy Costs Managed, we pride ourselves on being energy consultants with a difference.

Unlike many in our industry, we go beyond just procuring electricity, gas and water supply contracts, in this months round up, we cover changes to wholesale energy prices over February, volatile pricing and TNUoS charge increases from the 1st April 2026 and how these could impact your business going forward and much more.

February Overview

In February 2026, wholesale electricity and gas prices have remained volatile. Ongoing concerns surrounding the conflict between Iran and the United States, and its impact on neighbouring countries, have led to significant price fluctuations. We continue to monitor the situation closely on behalf of our clients and will provide as much communication and support as possible. As we start March 2026, wholesale gas prices have seen some significant price increases this morning - 2nd March.

Wholesale Energy Prices

Wholesale gas prices have increased during February, including the morning of 2 March, in some cases quite markedly. Wholesale electricity prices have eased slightly; however, given the current conditions in the wholesale gas market, it remains to be seen whether this will affect power prices in the days ahead.

Month to date

Gas Prices for April 2026 have increased from 75.250p per therm to 96.120p per therm

Summer 2026 - have increased from 72.295p per therm to 91.70p per therm

Winter 2026 - have increased from 76.291p per therm to 92.00p per therm

Power Prices for April 2026 have reduced from £80.74 per mwh to £71.97 per mwh

Summer 2026 - have reduced from £77.17 per mwh to £70.29 per mwh

Winter 2026 - have reduced from £81.20 per mwh to £75.55 per mwh

Upcoming TNUos Charge Increases on the 1st April 2026

NESO (National Energy System Operator) has confirmed that on average a 64% increase in TNUos Charges for 2026/2027 starting from the 1st April 2026.