28th September 2026,
12:04 pm
Businesses with electricity or gas contracts ending before April 2027 are facing an important procurement decision, with near-term wholesale energy prices remaining elevated.
UK near-term gas prices have traded around 6.8p/kWh, while Winter-26 electricity has reached approximately 16.1p/kWh. Ongoing geopolitical tensions, supply disruption and low European gas storage continue to add pressure to the market.
However, prices further along the forward curve remain significantly lower:
- 2028 gas: approximately 3.2p/kWh
- 2028 electricity: approximately 8.2p/kWh
- 2029–30 gas: approximately 2.4–2.5p/kWh
- 2029–30 electricity: approximately 7.1–7.3p/kWh
This difference between near-term and longer-dated prices means businesses should consider whether fixing their entire energy requirement today is the right approach.
Could flexible procurement be an option?
A flexible contract allows businesses to purchase energy in stages rather than fixing their full requirement at once.
For businesses approaching renewal, this could mean protecting some of their immediate Winter-26 exposure while purchasing future energy separately. This can help spread purchasing decisions, build budget certainty gradually and provide greater control over market exposure.
Flexible procurement does not guarantee a lower overall cost. Any volume left open remains exposed to future market movements, whish means prices could rise if supply disruption or geopolitical tensions increase.
For some businesses, fixing the full requirement may still be the right approach. For larger energy users or organisations able to purchase in stages, however, a flexible strategy could provide greater control over cost certainty, timing and market exposure.
What should businesses do now?
If your energy contract expires before April 2027, now is the time to review your options rather than waiting until your renewal is approaching.
GLEG can review your current energy position, compare fixed and flexible contract options and develop a purchasing strategy aligned with your business requirements. Email GLEG at [email protected]