Business energy prices continue to move rapidly in 2026, and for many UK companies the increases feel relentless. While wholesale markets showed signs of stabilisation at the start of the year, offering welcome relief after the volatility of the 2022–23 energy crisis, that stability has proved short-lived.
The Rise of the non-commodity prices
At the beginning of the year, although the cost of energy itself hadn’t surged dramatically, non‑commodity charges continued to increase. These include:
- Policy levies introduced to fund the UK’s energy transition
- Standing charge increases, designed to fund essential maintenance and expansion of the UK’s high‑voltage transmission network.
Things were relatively quiet on the commodity cost, until renewed geopolitical tensions in the Middle East added global uncertainty to already sensitive markets, with increasing sudden price spikes. The market continues in a state of volatility with the risk of sudden price surges.
Fixed Contracts vs. Expiring Contracts: Who Is Most Exposed?
Businesses with long-term energy contracts are protected from this current period of volatility. Prices may stabilise again long before renewal dates arrive.
However, businesses with contracts expiring within the next six months face a much bigger challenge. Timing now matters more than ever.
The key question decision-makers are asking is:
Do you secure a deal now, or wait in the hope prices fall?
The reality is simple:
You can’t control the market, but you can control your exposure to it.
In today’s UK energy market, nothing stays the same for long and prices can change quickly and without warning.
Right now, businesses are effectively choosing between two scenarios:
📉 Prices Could Fall
If global tensions ease, wholesale energy prices may come down.
📈 Prices Could Rise Further
If disruption continues, prices could carry on increasing – and quickly.
The decision is no longer just about price. It’s about how much risk your business is willing to take.
If Your Contract Ends in the Next 6 Months – Act Early
If you have 3–6 months remaining, you should already be reviewing your options.
Why?
- Quotes are only valid for short periods
- Suppliers regularly reprice in volatile conditions
- Waiting reduces your ability to secure favourable terms
Doing nothing is no longer a safe option.
Avoid Out-of-Contract Rates at All Costs
One of the most expensive mistakes a business can make is allowing a contract to expire without securing a new one.
This results in being placed on out-of-contract (deemed) rates, which are typically the highest available.
You could face:
- Significantly higher unit rates
- Increased standing charges
- No protection from future price rises
Why this matters right now
With global instability continuing, prices can spike without warning.
If your contract ends at the wrong time, you could be exposed to avoidable and significant cost increases.
At minimum, every business should have a clear plan before their contract ends.
A Smarter Strategy: Short-Term (1-Year) Contracts
In the current market, many businesses are choosing 1-year contracts to stay flexible.
This approach helps manage uncertainty without long-term commitment.
Why it works:
- Reduces exposure to long-term market risk
- Allows you to reassess in 12 months
- Avoids locking into a long deal at the wrong time
It’s not about predicting the market, it’s about staying in control of it.
But Longer Contracts Still Have Value
Short-term flexibility isn’t always the cheapest option.
- Longer contracts can offer lower unit rates
- They provide stability for budgeting
- Shorter deals leave you exposed to future price increases
The right choice depends on your risk appetite and business needs.
Waiting Doesn’t Guarantee Lower Bills
Even if wholesale prices fall, total energy bills may not drop significantly.
That’s because:
- Network charges and levies continue to rise
- Non-commodity costs make up a large share of bills
- The UK energy market remains structurally expensive
Waiting may not deliver the savings businesses expect.
A Simple Way to Decide
- Less than 3 months remaining
Secure a deal now - 3–6 months remaining
Review options and monitor the market - More than 6 months remaining
Start planning ahead
The Bottom Line
This isn’t just about finding the cheapest deal.
It’s about choosing the right strategy for your business.
- Lock in certainty
- Stay flexible
- Or balance both
Speak to an Expert Before the Market Moves Again
Energy prices can change quickly — and timing matters.
At Let’s Nail Energy, we:
- Monitor the market daily
- Compare trusted UK suppliers
- Help you choose the right contract – not just the cheapest one
If your contract ends within the next 6 months, now is the time to act.
Get in touch today and make sure you’re not overpaying – or exposed to unnecessary risk.