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
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:
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.
