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 Energy Efficiency is Becoming a Procurement Priority in 2026
With wholesale energy markets continuing to fluctuate many UK businesses are now looking beyond contract pricing alone and placing greater focus on reducing overall energy demand.
Improving energy efficiency is increasingly being viewed as a key part of long-term procurement strategy. From upgrading lighting systems and improving heating controls to monitoring out-of-hours consumption, businesses are identifying practical ways to reduce usage before entering new energy agreements.
Lower consumption can provide greater flexibility when negotiating contracts, reduce exposure to market volatility and improve forecasting accuracy. For multi-site organisations in particular, energy reduction initiatives are becoming closely linked with wider operational and financial planning.
As businesses continue to balance rising operational costs with sustainability targets, energy efficiency is expected to remain a major focus throughout 2026.
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 - 21st May to 28th May
Gas Prices for July 2026 are 113.43p per therm
September 26 -reduced from 121.39p per therm to 114.83p per therm
December 26 - reduced from 125.19p per therm to 119.78p per therm
March 27 - reduced from 113.33p per therm to 108.34p per therm
Power Prices for July 2026 are £100.43 per MWh
September 2026 - reduced from £101.86 per MWh to £100.25 per MWh
December 2026 - reduced from £104.94 per MWh to £104.66 per MWh
March 2027 - reduced from £99.310 per MWh to £99.00 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:
Why Contract Timing Matters More Than Ever
In volatile energy markets, the timing of a contract renewal can have a significant impact on overall business energy costs.
Many businesses leave renewals until the final weeks of their contract, limiting the opportunity to monitor market movements or secure pricing during favourable trading periods. Reviewing contracts earlier can provide greater flexibility, stronger negotiating power and more time to assess different procurement options.
Key considerations when approaching renewal include:
Current wholesale market conditions
Contract end dates and notice periods
Business growth or operational changes
Energy usage trends
Fixed versus flexible purchasing options
With market conditions continuing to change rapidly, proactive planning is becoming increasingly important for businesses seeking greater cost control and budget certainty.
Week Ahead
Market attention next week is expected to remain focused on European gas storage levels, renewable generation forecasts and international LNG supply availability.
Traders will also continue monitoring weather patterns across Europe, maintenance activity within energy infrastructure and wider geopolitical developments which may influence short-term wholesale pricing movements.
As summer demand patterns begin to develop, market volatility is expected to remain present across both gas and electricity trading.
Quick Take
While wholesale energy prices remain significantly below the record highs experienced during the energy crisis, markets continue to react quickly to supply concerns, weather changes and global developments.
For UK businesses, maintaining visibility over contract timelines, procurement strategy and energy usage remains essential in managing costs effectively within an unpredictable market environment.
