March 2026 Energy Market Update, What Businesses Should Know

Intro:

Wholesale energy markets have shifted again following recent geopolitical developments. While prices had eased earlier in the week on mild weather and improved wind generation, global tensions have altered short term sentiment and increased volatility.

What has happened?

Recent conflict in the Middle East and disruption concerns around key shipping routes have affected global energy flows. European gas storage remains lower than this time last year, leaving less buffer should disruption continue.

As a result:

• Wholesale electricity prices have risen week on week.
• Wholesale gas has increased more sharply.
• Forward markets are pricing in risk.

What does this mean for UK businesses?

Energy pricing is driven by wholesale markets. While short term movements do not always translate immediately into contract pricing, sustained volatility does impact renewal rates.

If your energy contract:

• Ends within the next 12 months
• Is currently on rollover rates
• Or is due for review

Now is a sensible time to assess options.

Markets are not in crisis territory. However, they are reactive.

The key message:

Do not leave renewals until the final weeks.
Understand your position early.
Consider fixed options while they remain available.

As always, market timing should be aligned with your business risk appetite.

Energy procurement is not about predicting the future. It is about managing exposure.

If you would like a review of your current contract position, we are happy to provide one.