Energy Costs Managed - Energy Hub

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.

What Is Energy Procurement and Why Does It Matter for UK Businesses?

Wed, 13 May 2026 15:35:31 +0000

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.

What Is Energy Procurement?

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.

A proper procurement strategy considers market conditions, supplier pricing, contract lengths, business usage patterns and future energy requirements. The aim is not only to secure competitive rates, but also to reduce risk and improve long-term cost control.

For many businesses, energy procurement also plays a role in supporting sustainability goals, improving efficiency and avoiding unnecessary charges hidden within energy contracts.

Why Energy Procurement Matters

The UK energy market changes constantly. Wholesale prices can rise and fall quickly, while additional costs such as network charges and environmental levies continue to affect commercial energy bills.

Without a clear procurement strategy, businesses can easily end up paying more than necessary for their energy. Many companies are automatically placed onto expensive out-of-contract rates or locked into agreements that no longer suit their operational needs.

By managing procurement properly, businesses can gain better visibility over their energy spending and make more informed decisions about when and how they buy energy. Even relatively small savings on unit rates can make a noticeable difference over the course of a year, particularly for businesses with high energy consumption or multiple locations.

The Main Ways Businesses Buy Energy

Most UK businesses arrange their energy contracts in one of three ways. Some use an energy broker, others work with an energy consultant, while some deal directly with an energy supplier.

Although these terms are sometimes used interchangeably, there are important differences between them.

What Does an Energy Broker Do?

An energy broker acts as a middleman between businesses and energy suppliers. Their role is usually focused on gathering quotes, comparing tariffs and arranging contracts on behalf of the client.

For smaller businesses, using a broker can save considerable time and effort. Instead of contacting suppliers individually, businesses can access multiple quotes through a single point of contact. Brokers often have relationships with a range of suppliers and may be able to secure competitive rates that are not always easy to find independently.

However, businesses should understand how brokers are paid. Many brokers receive commission from suppliers once a contract is agreed. While this is common practice within the industry, transparency is important. Businesses should feel confident that recommendations are based on value and suitability rather than commission levels alone.

What Does an Energy Consultant Do?

An energy consultant generally provides a broader and more strategic service than a standard broker. While consultants may still help businesses secure contracts, their work often goes beyond simple price comparisons.

Energy consultants typically analyse usage patterns, review procurement strategies, assess market risks and identify opportunities to improve efficiency. They may also support businesses with carbon reduction planning, sustainability reporting and long-term energy management.

For larger organisations or businesses with complex energy requirements, consultancy-led procurement can offer greater value over time. Rather than focusing solely on short-term pricing, consultants help businesses develop strategies that align with operational goals and future market conditions.

Unlike some brokers, consultants often work on a transparent fee basis, giving businesses a clearer understanding of costs and services provided.

Should You Go Directly to an Energy Supplier?

Some businesses choose to negotiate directly with energy suppliers without using a broker or consultant. This approach can work for smaller companies with straightforward energy needs.

Dealing directly with suppliers may seem simpler, but it can limit market visibility. Suppliers will naturally promote their own products and tariffs, which means businesses may miss better opportunities available elsewhere in the market.

Negotiating directly can also be time-consuming, particularly when comparing contract terms, renewal conditions and pricing structures across multiple suppliers.

Broker vs Consultant vs Supplier: What Is the Difference?

The main difference comes down to the level of service and strategic support provided.

An energy broker is primarily focused on sourcing quotes and arranging contracts. An energy consultant takes a wider view of energy management, helping businesses improve efficiency, manage risk and plan for the future. Going directly to a supplier removes the intermediary entirely but also reduces access to wider market comparisons.

The right choice depends on the size of the business, energy usage and long-term objectives.

Choosing the Right Energy Procurement Support

When selecting an energy procurement partner, businesses should look for transparency, market knowledge and industry experience. It is important to understand how the provider is paid, which suppliers they work with and what level of ongoing support they offer.

Businesses with more complex energy requirements may benefit from a strategic consultancy approach, while smaller organisations may simply require help securing competitive contract rates.

In all cases, taking a proactive approach to energy procurement can help businesses improve budgeting, reduce unnecessary costs and gain better control over their energy usage.

Final Thoughts

Energy procurement is no longer just about finding the cheapest tariff. In today’s market, businesses need a procurement strategy that supports cost control, operational efficiency and long-term planning.

Understanding the differences between brokers, consultants and direct suppliers can help businesses make more informed decisions and avoid costly mistakes.

With energy prices and market conditions continuing to evolve, professional procurement support can play an important role in helping businesses stay competitive and financially resilient.

For businesses looking to review their current contracts or improve their energy strategy, Energy Costs Managed, provides tailored support designed to help organisations manage costs and navigate the UK energy market more effectively.

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

Wed, 13 May 2026 10:35:00 +0000

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

Out-of-contract rates explained

Out-of-contract energy rates are the pricing structures applied when a business does not have an active energy contract in place. Instead of a negotiated agreement, 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.

The key issue is that many businesses are unaware they are on these rates, or they assume they will automatically be transferred onto a new competitive contract without action being required.

Why businesses end up on out-of-contract rates

In most cases, businesses do not intentionally choose to be on out-of-contract pricing. It usually happens due to timing and lack of visibility.

A contract may expire without a renewal being agreed in advance, or internal teams may not be aware of the exact end date. In some cases, renewal discussions are delayed until after expiry, which reduces negotiating power and flexibility.

Once the contract has ended, suppliers typically move accounts onto out-of-contract rates automatically.

Why these rates are a problem

Out-of-contract rates are not structured for long-term cost efficiency. They are generally set at a premium level to encourage businesses to move onto a formal contract.

The longer a business remains on these rates, the more significant the cost impact becomes compared to negotiated pricing. In many cases, this creates unnecessary and avoidable overspend.

The issue is not just higher pricing it is the lack of control over procurement timing and structure once the contract has expired.

Why this often goes unnoticed

One of the biggest challenges is visibility. Many businesses do not actively track energy contract end dates across departments or sites.

As a result, the transition onto out-of-contract rates can happen without immediate notice. By the time it is identified, the business may have already been exposed to higher costs for weeks or months.

This is particularly common in organisations managing multiple sites or legacy contracts.

How to avoid unnecessary exposure

The most effective way to avoid out-of-contract pricing is early contract planning. Reviewing energy agreements several months before expiry allows time to assess options and secure a new contract before the existing one ends.

Clear visibility of contract end dates across the business is also essential. Without this, procurement decisions are often reactive rather than planned.

Early engagement with the market typically provides more control over pricing, structure, and timing.

Final Thoughts

Out-of-contract rates are intended as a temporary safeguard not a long-term pricing solution.

However, many businesses remain on them longer than necessary simply due to lack of visibility or delayed decision-making.

Understanding your contract end dates and planning ahead is one of the simplest ways to avoid unnecessary energy cost exposure.

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?

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.

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 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.

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

Thu, 07 May 2026 09:06:00 +0000

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.

Why energy contract renewal matters

In the UK energy market, contracts are typically fixed for a set term (for example 1–3 years). When that term ends, your pricing agreement with the supplier also ends.

At that point, you generally have two options:

Agree a new contract (fixed or flexible pricing)
Move onto out-of-contract or default rates

The second option is where issues often arise.

What happens if you miss your renewal date?

Missing your renewal date doesn’t just cause administrative issues it can significantly increase your costs.

In most cases, if no new contract is in place:

You may be transferred onto out-of-contract rates
These rates are typically significantly higher than negotiated contract pricing
You lose access to forward market pricing opportunities
You may have reduced flexibility in choosing contract structure

These rates are not designed for long-term use. They are essentially a holding position for suppliers until a formal contract is agreed.

The hidden risk many businesses overlook

One of the most common issues is timing.

Businesses often only begin reviewing their energy contract when they receive a renewal notice. By that point:

Market conditions may have shifted
Fewer competitive options may be available
Shorter lead times reduce negotiation flexibility

This is where unnecessary cost exposure often begins —not from energy usage, but from timing and procurement delay.

Why early review changes the outcome

Starting the renewal process early (typically 6–12 months before expiry) allows businesses to:

Compare multiple pricing windows
Avoid default or rollover exposure
Structure contracts more strategically
Align procurement decisions with market conditions

Energy pricing is influenced heavily by timing. Early engagement often provides more control over outcomes.

Final Thoughts

Missing your energy contract renewal date is not a minor administrative oversight it can directly affect what you pay for energy.

The most cost-effective businesses treat renewal as a planning process, not a last-minute decision.

If your contract is due to expire in the next 6–12 months, it’s worth reviewing your position early rather than waiting for the expiry date to arrive.

Get Started Now

Fixed vs Flexible Energy Contracts: Which Is Better for UK Businesses?

Mon, 04 May 2026 12:11:00 +0000

Fixed vs Flexible Energy Contracts: Which Is Better for UK Businesses?

Choosing between a fixed and flexible energy contract is one of the most important decisions businesses make when managing energy costs.

However, there is no universal “best” option. The right choice depends far less on price alone and much more on how your business manages risk, planning, and exposure to market movement.

Understanding the difference properly is key to avoiding unnecessary cost or complexity.

What is a fixed energy contract?

A fixed energy contract sets a single unit rate for electricity or gas over an agreed term, typically one to three years. That rate does not change during the contract period, regardless of what happens in the wider energy market.

For many businesses, this provides a sense of stability. Costs become easier to forecast, budgeting becomes more straightforward, and there is protection from short-term price spikes in the market. The trade-off is that if wholesale prices fall during the contract term, the business does not benefit from those reductions.

What is a flexible energy contract?

A flexible energy contract takes a different approach. Instead of locking in a single rate upfront, energy is purchased in stages over time, allowing businesses to access different points in the market.

This can create opportunities to manage cost more dynamically and potentially benefit from favourable pricing conditions. However, it also introduces more variability, and costs are less predictable compared to a fixed structure. It usually requires more active monitoring and a clearer procurement strategy.

The real difference isn’t price it’s risk

The most important distinction between fixed and flexible contracts is not the rate itself, but how risk is managed.

A fixed contract transfers market risk away from the business in exchange for certainty. A flexible contract keeps more of that risk within the business but creates the opportunity to optimise around market movements.

Neither approach is inherently better. They simply behave differently depending on market conditions and how a business prefers to operate.

Why businesses choose fixed contracts

Fixed contracts are often chosen by organisations that prioritise stability. Businesses with strict budgeting requirements, limited internal resource for procurement management, or a low appetite for market volatility tend to prefer this structure because it removes uncertainty from day-to-day financial planning.

Why businesses choose flexible contracts

Flexible contracts are typically used by organisations that are more active in managing procurement decisions. These businesses are usually more comfortable with some level of price variation in exchange for the ability to respond to market conditions over time.

This approach can work well, but only when there is enough oversight and understanding of how the market is behaving.

Where businesses often go wrong

One of the most common issues is selecting a contract type based purely on price at the point of renewal, without fully considering how that structure fits the business over the full term.

In practice, the outcome of either option is heavily influenced by timing, market conditions, and how actively the contract is managed. A structure that looks attractive initially can become less effective if it doesn’t align with the business’s actual risk profile.

Final Thoughts

Fixed and flexible energy contracts are not competing products they are different approaches to managing risk.

The right choice depends on how your business operates, how much certainty you need, and how actively you want to engage with procurement decisions over time.

If there is uncertainty around which structure is most appropriate, reviewing your current setup in the context of your business strategy and market conditions is often the most effective first step.

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.

How UK Businesses Waste Money on Energy Contracts

Wed, 29 Apr 2026 14:33:29 +0000

How UK Businesses Waste Money on Energy Contracts

Many UK businesses are unknowingly wasting money on their energy contracts simply because they are not actively managed. Energy pricing is complex, and without regular review or procurement support, companies often end up on unsuitable tariffs, expensive rollover rates, or outdated agreements that no longer reflect their actual usage.

At Energy Costs Managed, we regularly see businesses paying significantly more than they need to for electricity and gas not because they are using more energy, but because their contracts were never optimised or reviewed at the right time.

Being Rolled Onto Expensive Out-of-Contract Rates

One of the most common causes of business energy waste UK is allowing contracts to expire without action. When this happens, suppliers automatically move businesses onto out-of-contract rates, which are often significantly higher than negotiated prices.

These rates are designed as a default option, not a cost-effective solution. Businesses can sometimes pay 2–3 times more than necessary simply because their renewal date was missed or not managed properly.

Poorly Timed Contract Renewals

Energy markets fluctuate constantly, meaning timing plays a major role in how much you pay. Many businesses renew contracts too late—or at the wrong time—locking in higher rates than necessary.

Without market monitoring, companies miss opportunities to secure lower prices when wholesale energy costs dip. Effective procurement ensures contracts are renewed strategically, not reactively.

Paying for the Wrong Contract Type

Another major source of waste is being on the wrong type of contract. For example:

Fixed contracts may not suit high-usage or seasonal businesses
Variable contracts can expose businesses to market spikes
Flexible contracts are often underused due to complexity

Without proper analysis, businesses frequently end up on contracts that do not match their consumption patterns or risk tolerance.

Inaccurate Billing and Hidden Charges

Many businesses also overpay due to billing errors or unclear contract charges. These can include:

Incorrect meter readings
Unnoticed standing charge increases
Misapplied tariff rates
Additional supplier fees

Without regular bill validation, these issues often go unnoticed for months or even years.

Lack of Supplier Comparison

Staying with the same supplier for convenience is another major cause of business energy waste UK. Many businesses do not regularly compare available market rates, meaning they miss out on more competitive deals from alternative suppliers.

The energy market is competitive, and pricing varies significantly depending on timing, usage, and contract structure.

No Active Energy Management Strategy

Perhaps the biggest issue is the lack of ongoing energy management. Many businesses treat energy contracts as a one-time decision rather than a continuously optimised cost.

Without monitoring usage, reviewing contracts, and engaging the market regularly, businesses lose opportunities to reduce costs over time.

Why This Matters

Energy is one of the largest overheads for most UK businesses. Even small inefficiencies in contract management can lead to significant long-term financial waste. In many cases, businesses are overspending not because they consume more energy, but because their procurement strategy is outdated or inactive.

How EnergyCostsManaged Helps

At EnergyCostsManaged, we help businesses eliminate unnecessary energy waste by:

Reviewing existing electricity and gas contracts
Comparing suppliers across the market
Identifying better pricing opportunities
Managing contract renewal timing
Checking billing accuracy and charges

Our goal is to ensure your energy contracts are cost-effective, transparent, and aligned with your business needs—so you only pay what you should.

Final Thoughts

Business energy waste UK is often hidden in plain sight. From expired contracts to poor timing and billing errors, many businesses are losing money without realising it. The good news is that with the right procurement strategy, these costs can often be significantly reduced.

If your energy contract hasn’t been reviewed recently, it may be worth reassessing whether you’re getting the best possible deal available in the market today.

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