Welcome to Our Weekly Newsletter!
At Energy Costs Managed, we believe energy consultancy should never be one size fits all. We work closely with every client to develop a tailored energy procurement strategy, helping businesses manage risk, reduce utility costs and make informed purchasing decisions with confidence.
Where Are Energy Prices Heading in 2026?
It's the question we're being asked most often by customers: where are energy prices going next?
While no one can predict wholesale markets with certainty, several key factors are likely to shape business energy costs during the remainder of 2026.
Volatility Looks Set to Continue
The extreme price spikes seen during the energy crisis have eased, but markets remain far from stable. Wholesale gas continues to set the price of electricity for much of the UK, meaning any disruption to global gas supplies can quickly feed through into electricity prices.
Recent geopolitical tensions have demonstrated how quickly wholesale markets can react, with gas and power prices moving significantly in
response to concerns over global supply and shipping routes.
Weather Still Matters
Weather remains one of the biggest influences on wholesale pricing. A cold winter across Europe, low wind generation or periods of high summer demand can all increase reliance on gas-fired generation.
Conversely, milder temperatures, strong renewable generation and healthy gas storage levels can help ease pressure on prices.
Network and Policy Costs
Wholesale energy is only part of the picture. Businesses are also seeing increasing network charges and policy-related costs as investment continues in the UK's electricity infrastructure and transition to a lower-carbon energy system. These costs are expected to remain a feature of business energy bills over the coming years.
What Does This Mean for Businesses?
Rather than expecting prices to continually fall, most market analysts expect wholesale markets to remain volatile, with prices responding to weather patterns, global events and supply and demand fundamentals. While long-term forecasts suggest markets could gradually become more stable, short-term price swings are likely to remain part of the landscape.
Our Advice
There is rarely a 'perfect' time to buy energy. The best procurement strategy depends on your business, your appetite for risk and current market conditions.
At Energy Costs Managed, we continue to monitor the wholesale markets every day, helping our customers identify opportunities to secure competitive contracts while managing the risk of future price increases.
If your current energy contract is due for renewal within the next 12 months, now is a good time to review your options and discuss a purchasing strategy tailored to your business.
Have a great weekend!
Chris Horsley
Wholesale Energy Prices
This week, wholesale gas and electricity prices have risen significantly. Market movements have been driven by a combination of geopolitical developments, warmer weather across Europe and ongoing demand for gas storage. As a result, wholesale energy markets have remained volatile throughout the week.
If your business has an upcoming energy contract renewal or you would like to understand how current market conditions could impact your energy costs, our team is available to provide guidance and support.
Gas
August 2026: ↑ 104.51p to 120.83/therm
September 2026: ↑ 106.00p to 121.37/therm
December 2026: ↑ 112.05p to 126.16/therm
March 2027: ↑ 101.45p to 112.60/therm
Electricity
August 2026: ↑ £94.37 to £103.40/MWh
September 2026: ↑ £94.96 to £104.82/MWh
December 2026: ↑ £102.76 to £112.35/MWh
March 2027: ↑ £ 95.41 to £103.38/MWh
Wholesale energy markets remain highly volatile. The prices shown are indicative only and intended to illustrate market movements. They should not be relied upon as trading or financial advice.
Whats New in The Energy Hub This Week?
This week in the Energy Hub, we're highlighting two hidden costs that could be affecting your business. We explore why so many organisations become trapped in auto-renewing waste contracts and, more importantly, how to avoid it. We're also taking a closer look at golf clubs, uncovering the often-overlooked utility costs that can have a significant impact on operating budgets. Whether you're reviewing supplier contracts or looking for new ways to reduce overheads, these latest articles offer practical insights to help your business stay one step ahead.
The Hidden Utility Costs Running Your Golf Club (Most Clubs Overlook These)
Running a golf club in the UK involves far more than maintaining the course and managing memberships. Behind the scenes, a significant proportion of operating costs are tied up in utilities and essential services that often receive far less scrutiny than they should.
While energy bills tend to attract the most attention due to their visibility and volatility, many golf clubs are quietly overspending in other areas such as water supply, waste management, and merchant services. These costs are often less obvious, less frequently reviewed, and in some cases, poorly understood by committees and management teams.
Why Waste Contracts Auto-Renew (and How Businesses Get Stuck)
