Welcome to Our Weekly Newsletter!
Welcome to this week’s Energy Costs Managed newsletter.
Each week, we bring you practical advice, energy market insight and useful information to help your business take greater control of its energy costs.
At Energy Costs Managed, we believe effective energy management is about more than simply finding the cheapest tariff. Your energy strategy should reflect how your business operates, the level of risk you’re comfortable with and what you’re looking to achieve from your next contract.
This week, we’re looking at something many businesses leave too late: preparing for your next energy contract before your renewal date arrives.
Don’t Wait Until Your Energy Contract Is Due to Renew
For many businesses, energy contract renewal only becomes a priority when the current agreement is approaching its end.
By then, decisions can feel rushed.
Waiting until the last minute can mean having less time to properly assess your options, understand market conditions and consider how your business’s energy requirements may have changed.
A more proactive approach gives you time to review your position and make decisions based on your business needs, rather than simply reacting to a deadline.
Start With Your Current Contract
Before looking at new prices, take the time to understand what you currently have.
Consider:
When does your current contract end?
Are you on a fixed or flexible arrangement?
What rates and charges are you currently paying?
Are there any additional contractual charges?
Has your energy consumption changed since the contract began?
Have your business operations or premises changed?
Understanding your current position gives you a clearer starting point when considering your next contract.
Has Your Business Changed?
The energy contract that suited your business several years ago may not necessarily reflect your requirements today.
Perhaps your business has expanded.
You may have opened or closed premises, changed operating hours, increased or reduced staffing levels, invested in new equipment or altered your production processes.
All of these factors can affect your energy consumption.
Before renewing, it’s worth asking whether your existing contract and procurement strategy still align with the way your business operates today.
Don’t Just Look at the Headline Rate
When comparing energy contracts, it can be tempting to focus on the unit price.
However, the headline rate is only part of the overall picture.
Businesses should also consider the wider contractual structure, including standing charges, contract terms, payment arrangements and any other applicable costs.
It’s important to understand exactly what you’re agreeing to rather than making a decision based on one figure alone.
Timing Matters
Wholesale energy prices move constantly, which means market conditions can change between the point at which you start considering a renewal and the point at which you secure a contract.
That doesn’t mean businesses should try to predict exactly where the market will move next.
Instead, having a clear procurement strategy can help you understand your options and make decisions within an appropriate timeframe.
The earlier you start the process, the more time you have to review your requirements, monitor the market and consider the approach that best fits your business.
Know Your Risk Tolerance
There is no single energy contract structure that is right for every business.
Some businesses may prioritise price certainty and budget stability.
Others may be more comfortable with market exposure in return for greater flexibility.
The important thing is understanding the balance between price, certainty, flexibility and risk that works for your organisation.
Your procurement strategy should be built around your business objectives rather than simply following what another company is doing.
A Simple Renewal Checklist
If your energy contract is due to expire within the next 12 months, now is a good time to start reviewing your position.
Ask yourself:
When does our current contract end?
Do we understand exactly what we are currently paying?
Has our energy consumption changed?
Have our business operations changed?
What are our priorities for the next contract?
How much price certainty do we need?
Are we monitoring wholesale market movements?
Do we have enough time to make an informed decision?
If you can answer these questions, you’ll be in a much stronger position when it comes to reviewing your next agreement.
Energy Costs Managed
At Energy Costs Managed, we help UK businesses take a more informed and proactive approach to energy procurement and ongoing energy management.
Whether your contract is due for renewal soon or you simply want to understand your current position, reviewing your energy strategy early can help you avoid rushed decisions.
Don’t wait for your renewal date to start thinking about your next energy contract.
A little preparation today can give you greater clarity when it’s time to make your next decision.
Wholesale Energy Market Update
Wholesale energy prices have remained volatile this week, with movements across the forward periods we monitor.
For businesses approaching contract renewal, keeping an eye on wholesale market movements can provide useful context when considering your next energy contract.
If your contract is due for renewal within the next 12 months, our team can help you understand how current market movements could affect your next agreement.
Book a complimentary 15-minute energy contract review.
Week to date - 9th September to 16th September
Gas
- October 2026: ↓ 197.67p to 193.45p/therm
- December 2026: ↓ 201.55p to 198.67p/therm
- March 2027: ↑ 186.79p to 188.67p/therm
- June 2027: ↑ 126.87p to 128.69p/therm
Electricity
- October 2026: ↓ £152.00 to £149.98/MWh
- December 2026: ↓ £160.53 to £158.93/MWh
- March 2027: ↑ £152.46 to £159.64/MWh
- June 2027: ↑ £ 102.97 to £104.45/MWh
Wholesale energy markets remain highly volatile. The prices shown are indicative only and are intended to illustrate wholesale market movements. They should not be considered an offer to supply, a guaranteed contract price, or financial/trading advice.Thank you for reading this weeks newsletter.
Thank you for reading this week’s newsletter.
We’ll be back next week with the latest wholesale energy market movements, practical advice and expert insight to help your business manage energy costs more effectively.
If your energy contract is due for renewal within the next 12 months, or you simply want to understand whether your current arrangement still meets your business needs, we’d be delighted to help.
Have a great weekend!
Chris Horsley
