Welcome to Our Weekly Newsletter!
At Energy Costs Managed, we pride ourselves on being energy consultants with a difference. Rather than offering a one size fits all service, we work closely with our clients to provide a personalised approach to managing and reducing their business utility costs.
Energy Prices and Where Might they go in 2026?
The UK energy market entered 2026 in a much stronger position than during the peak of the energy crisis in 2022/23. Wholesale gas and electricity prices remain significantly below those crisis highs, although they are still above historic pre-2021 averages.
The outlook for gas has been relatively stable; however, ongoing tensions in the Middle East have created concerns around potential supply disruptions and shipping routes. As a result, traders have priced additional risk into the market.
Lower gas storage levels are also a key concern at present. Following the winter period, European storage levels came under pressure and refilling storage ahead of the upcoming winter has become a major focus. If storage levels remain low traders are concerned that Europe may need to compete more aggressively for LNG cargoes, which could place further upward pressure on prices.
At present, electricity prices continue to follow gas markets closely. Although renewable generation continues to grow, gas-fired power stations still frequently set the marginal price in the UK power market. This means that when gas prices rise, electricity contracts often rise as well.
Our view is that if your contract expires within the next 6–12 months, you should monitor the market closely and consider securing a contract if attractive opportunities arise. Current market conditions do not justify panic buying, but neither do they support waiting indefinitely for prices to fall.
If your contract expires within the next 3–6 months and budget certainty is a priority for your business, now is the time to review your options and consider locking in a new supply contract.
Alternatively, if your contract runs beyond the next 12 months and you are not currently exposed to renewal risk, we would recommend waiting until closer to your renewal period while continuing to keep a regular watch on market conditions.
Prices have risen recently, but there is not yet enough evidence to suggest a sustained long-term upward trend. Businesses should remain engaged with the market while maintaining a disciplined procurement strategy.
Have a great weekend!
Chris Horsley
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 - 4th June to 11th June
Gas Prices for July 2026 - increased from 117.93p per therm to 119.76p per therm
September 26 -increased from 119.41p per therm to 121.68p per therm
December 26 - increased from 124.11p per therm to 128.02p per therm
March 27 - increased from 110.47p per therm to 115.45p per therm
Power Prices for July 2026 - increased from £102.91 per MWh to £103.48 per MWh
September 2026 - increased from £102.16 per MWh to £103.64 per MWh
December 2026 - increased from £106.10 per MWh to £109.50 per MWh
March 2027 - increased from £99.270 per MWh to £102.94 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.
