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.
Falling Wholesale Energy Prices: Is now the right time to renew your contract?
Wholesale energy markets have fallen sharply this week, with both gas and electricity prices declining in response to growing optimism surrounding a potential peace agreement between the United States and Iran. Should an agreement be reached, the wholesale market is likely to reflect increased confidence in energy supplies continuing to flow through the Strait of Hormuz.
Greater market stability can help drive prices lower, naturally creating renewed interest among businesses approaching their contract renewal dates. But does that mean now is the right time to renew?
While falling wholesale prices can present opportunities, timing a contract renewal requires careful consideration. Energy markets remain highly sensitive to geopolitical developments, potential supply disruptions, weather forecasts and fluctuations in demand. As recent years have demonstrated, market conditions can change quickly.
For businesses with contracts due to expire within the next 6 to 12 months, the current market movement may provide an opportunity to review their options and assess whether securing rates now could offer greater budget certainty and protection against future volatility.
Before making a decision, businesses should consider how long remains on their existing contract, their appetite for market risk, budget requirements, the need for cost certainty and current market trends. These factors can help determine whether a fixed or flexible purchasing strategy is the most appropriate approach.
Rather than focusing solely on whether prices may fall further, businesses should consider whether current rates align with their budget objectives and overall risk management strategy.
Our team continues to monitor wholesale markets daily and can provide guidance on the most suitable renewal approach based on your energy usage profile and business objectives.
If your contract is approaching renewal, now could be a good time to review your options and explore whether current market conditions present an opportunity to secure competitive rates.
Have a great weekend!
Chris Horsley
Wholesale Energy Prices
Wholesale energy prices have eased significantly this week, as gas and electricity markets reacted to reports of a potential peace agreement between the United States and Iran, improving sentiment across global energy markets.
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.
Week to date - 11th June to 18th June
Gas Prices for July 2026 - reduced from 119.76p per therm to 96.69p per therm
September 26 -reduced from 121.68p per therm to 98.99p per therm
December 26 - reduced from 128.02p per therm to 106.30p per therm
March 27 - reduced from 115.45p per therm to 96.71 per therm
Power Prices for July 2026 - reduced from £103.48 per MWh to £91.46 per MWh
September 2026 - reduced from £103.64 per MWh to £92.06 per MWh
December 2026 - reduced from £109.50 per MWh to £98.24 per MWh
March 2027 - reduced from £102.94 per MWh to £92.78 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.
