24 September 2026
If your energy contract is approaching renewal, recent market movements are a timely reminder of the importance of reviewing your options early.
Over the past few months, wholesale gas and power prices have continued to rise. While some businesses have delayed renewing their contracts in the hope that prices would fall, recent market volatility has shown that waiting can sometimes lead to higher costs rather than lower ones.
For customers with October renewal dates, prices available today are significantly higher than those seen just a few weeks ago. Across the market, according to SEFE Energy market observations costs have increased by around 30 to 45%, meaning businesses that delayed their purchasing decisions are now facing much higher contract prices than were previously available. Cornwall Insights have found that energy bills have climbed 25% since February.
With energy markets remaining uncertain, many organisations are now faced with two key questions: when to secure their energy and how long they should commit for. The right answer will depend on individual business circumstances, including budget requirements, operational needs and appetite for risk.
Although current price levels may feel challenging, recent market movements highlight the difficulty of trying to predict future trends. Decisions based solely on the expectation that markets will fall can leave businesses exposed if prices continue to rise.
Looking ahead, there are several factors that could continue to influence wholesale energy prices, including winter weather conditions, global supply and demand dynamics, and wider geopolitical developments. Any of these factors could lead to further market volatility.
For businesses approaching renewal, staying proactive is increasingly important. Taking time to review your options, understand the risks and opportunities available, and seek professional guidance where appropriate can help support more informed decision-making.
One outcome that businesses should generally seek to avoid is moving onto out-of-contract rates, which are typically considerably higher than contracted market prices and can expose organisations to unnecessary additional costs.
The key message is simple: while no one can predict energy markets with certainty, making informed and timely decisions can often be a more effective way to manage risk than waiting for a market correction that may never materialise.
If your contract is due for renewal in the coming months, now is the time to start reviewing your options. Speaking to your energy supplier, or third party intermediary, early can help you understand the choices available, assess the potential risks, and make a more informed decision before market conditions change again.