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:
Market Volatility Returns as Traders React to Supply Uncertainty
Wholesale energy markets experienced renewed volatility this week, with gas and electricity prices fluctuating sharply in response to ongoing supply concerns across Europe. Week on week increases in wholesale energy costs are continuing to place pressure on businesses to manage budgets effectively and prepare for their upcoming contract renewals.
Planned maintenance in Norwegian gas infrastructure and uncertainty around global LNG availability have continued to influence trader sentiment, keeping forward contracts elevated despite softer seasonal demand.
Wholesale Energy Prices
Wholesale energy markets have remained volatile this week, with most key gas and power contract periods recording further increases following recent market uncertainty.
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 (30th April to 7th May)
Gas Prices for June 2026 increased from 106.870p per therm to 116.278p per therm
September 26 - increased from 106.920p per therm to 116.220p per therm
December 26 - increased from 111.750p per therm to 118.30p per therm
March 2027 - reduced from 109.70p per therm to 109.190p per therm
Power Prices for June 2026 increased from £91.41 per mwh to £99.17 per mwh
September 2026 - increased from £92.620 per mwh to £99.81 per mwh
December 2026 - increased from £95.840 per mwh to £100.930 per mwh
March 2027 - increased from £90.170 per mwh to £96.320 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:
What is Energy Procurement and why does it matter for UK businesses?
Energy costs are one of the largest ongoing expenses for many UK businesses. Whether you operate a small office, a retail premises, a warehouse or multiple commercial sites, the way you purchase your electricity and gas can have a significant impact on your overall operating costs. This is why energy procurement has become increasingly important for businesses across the UK.
Energy procurement is the process of sourcing, negotiating and managing business energy contracts. Rather than simply accepting a renewal quote from your current supplier, procurement involves taking a strategic approach to buying energy.
Why Energy Procurement Matters
Week Ahead
From the Energy Hub
Out of Contract Energy Rates Explained: What Every Business Needs to Know
Out-of-contract energy rates are the energy prices that are applied when a business does not have an active energy supply contract in place. Instead of a contracted price, the supplier applies a default tariff until a new contract is agreed.
These rates are typically significantly higher than standard contract pricing and are not designed for long-term use. They exist as a temporary arrangement to ensure supply continues while a new agreement is put in place.
Quick Take
The wholesale energy market has shifted this week from a relatively stable pricing position last week. While wholesale energy prices remain below the extreme peaks seen during the 2022 energy crisis, recent wholesale increases are a reminder that energy costs in the UK are still heavily influenced by global events and global gas prices. Energy procurement and contract management remain key for managing risk in the current climate.
