After several months of improving market conditions, August has seen business energy prices move back upwards, with both electricity and gas rates increasing over recent weeks. The change follows renewed geopolitical tensions involving Iran, which have pushed wholesale energy markets higher and prompted many UK suppliers to increase fixed-rate pricing.
Whilst the recent increases have reversed some of the price reductions seen during June and July, supplier competition remains strong, with the majority of UK business energy suppliers continuing to actively quote and compete for new business.
Although today’s prices remain considerably more stable than during the extreme volatility experienced earlier this year, the recent market movement is a timely reminder that wholesale energy markets can change quickly. Businesses approaching renewal should continue to monitor prices closely and consider reviewing their options sooner rather than later.
August Market Snapshot
📈 Electricity prices have increased
Higher wholesale gas prices have fed through into business electricity contracts, with many suppliers increasing fixed-rate offers over recent weeks.
🔥 Gas prices have also risen
Renewed concerns over global gas supplies and geopolitical uncertainty have pushed wholesale gas prices higher, reversing the downward trend seen earlier in the summer.
🌍 Iran remains the key market driver
Renewed tensions involving Iran and uncertainty surrounding key energy supply routes have once again become a major influence on wholesale energy markets.
🤝 Supplier competition remains healthy
Despite wholesale prices increasing, suppliers continue to compete for new business, meaning competitive contracts are still available for businesses that compare the market.
⚠️ Markets remain highly responsive
Wholesale prices continue to react quickly to geopolitical developments, weather forecasts and global supply conditions, meaning supplier pricing can move with little notice.
Business Electricity Prices – August 2026
Business electricity prices have increased during recent weeks as suppliers respond to rising wholesale energy costs. The principal driver has been renewed tensions involving Iran, which have pushed gas markets higher and, in turn, increased electricity prices across the UK market. Because gas-fired power stations continue to generate a significant proportion of the UK’s electricity, movements in wholesale gas prices have a direct impact on electricity contracts.
Unlike the market disruption experienced in March, where some suppliers temporarily withdrew pricing altogether, the current increase has been more measured. Most suppliers have remained active throughout, adjusting prices rather than withdrawing products, allowing businesses to continue comparing a wide range of fixed-rate contracts.
Whilst rates have risen compared with July, there remains a considerable difference between suppliers. Businesses renewing without comparing the market could still pay significantly more than those obtaining fresh quotations.
August 2026 Electricity Price Comparison Table
| Business Size |
Annual Usage (kWh) |
Average Electricity Rate (p/kWh) |
Average Standing Charge (p/day) |
| Micro business |
0 – 4,999 |
24.47p |
78.83p |
| Small business |
5,000 – 14,999 |
25.86p |
91.33p |
| Medium business |
15,000 – 24,999 |
25.98p |
91.33p |
| Large business |
25,000 – 49,999 |
25.87p |
139.28p |
| Very large business |
50,000+ |
Bespoke Pricing
|
Bespoke Pricing
|
*Electricity prices shown are average August 2026 business rates.*
The spread between the most competitive rates and average market pricing remains substantial, particularly for businesses that have not reviewed their contracts recently.
👉 Compare live electricity prices: https://www.wesave.co.uk/compare-business-electricity
Business Gas Prices – August 2026
Business gas prices have also moved higher after several months of steady improvement. Renewed uncertainty surrounding the Middle East and concerns over future gas supplies have resulted in stronger wholesale pricing, with suppliers gradually passing these increases through into fixed business contracts.
Although wholesale gas prices remain below the extreme levels seen during the spring, the recent increases demonstrate how quickly market sentiment can change. Businesses with significant gas consumption should continue monitoring the market closely, particularly where contracts are due for renewal during the second half of the year.
Supplier competition remains strong, however, meaning businesses that compare multiple suppliers are still well placed to secure competitive pricing despite recent increases.
August 2026 Gas Price Comparison Table
| Business Size |
Annual Usage (kWh) |
Average Gas Rate (p/kWh) |
|
Micro business
|
0 – 4,999 |
8.53p |
|
Small business
|
5,000 – 14,999 |
7.96p |
|
Medium business
|
15,000 – 24,999 |
7.93p |
|
Large business
|
25,000 – 49,999 |
7.97p |
|
Very large business
|
50,000+ |
Cheaper Bespoke Pricing
|
*Gas prices shown are average August 2026 business rates.*
With standing charges continuing to represent a significant proportion of total costs for many businesses, reviewing overall contract value remains just as important as securing a competitive unit rate.
👉 Compare live gas prices: https://www.wesave.co.uk/compare-business-gas/
Market Outlook
Rather than asking whether prices will continue rising or begin falling again, the more important question is whether current geopolitical tensions continue to affect wholesale markets.
Key factors to watch over the coming months include:
- Developments involving Iran and the wider Middle East
- Global wholesale gas prices
- European gas storage ahead of winter
- UK renewable electricity generation
- Supplier pricing strategies and competition
Why August Is Still Worth Comparing
Although prices have increased compared with July, businesses still have several advantages:
- Most suppliers remain actively quoting
- Strong competition continues across the market
- A wide range of fixed-price contracts are available
- Opportunity to secure pricing before winter demand increases
- Potential savings by comparing suppliers rather than auto-renewing
August Energy Checklist
✓ Check your contract end date
✓ Review your annual consumption
✓ Compare current electricity and gas prices
✓ Consider fixing rates if you’re within your renewal window
✓ Avoid expensive rollover or deemed tariffs
Final Thoughts
August marks the first meaningful upward movement in business energy prices since the market began recovering earlier this summer. Whilst recent increases have been driven largely by renewed geopolitical tensions involving Iran, supplier competition remains healthy and businesses continue to have access to a broad range of contract options.
As recent months have shown, energy markets can change direction quickly. Businesses approaching renewal should continue reviewing the market regularly rather than assuming prices will continue moving in either direction.
Start your comparison today:
⚡ Compare Business Electricity: https://www.wesave.co.uk/compare-business-electricity/
🔥 Compare Business Gas: https://www.wesave.co.uk/compare-business-gas/