As we move into March 2026, UK business energy markets have experienced a sharp period of volatility following escalating tensions in the Middle East. In late February and early March, the conflict involving Iran and disruptions around the Strait of Hormuz – one of the world’s most important energy shipping routes – triggered significant movement in global oil and gas markets.
Wholesale gas and electricity prices rose rapidly in the first week of March as traders priced in the risk of supply disruption. In response, many UK business energy suppliers temporarily withdrew quotes or pulled fixed tariffs from the market while they reassessed wholesale pricing risk.
Over the past few days, suppliers have gradually begun reintroducing pricing, although rates are generally higher than they were earlier in the year. The market remains highly sensitive to geopolitical developments, meaning short-term fluctuations are still possible.
Alongside wholesale volatility, non-commodity charges such as network costs, policy levies and standing charges continue to represent a growing share of business energy bills. This means comparing overall contract costs – rather than focusing solely on unit rates – remains essential when reviewing energy contracts.
In this March 2026 update, we outline the latest indicative business electricity and gas prices available across the market to provide a snapshot of current conditions for UK businesses.
Business Electricity Prices – March 2026
Electricity prices have seen renewed upward pressure in recent weeks due to volatility in the gas market and wider geopolitical uncertainty. Because gas-fired power stations frequently set the marginal price of electricity in the UK market, movements in global gas prices can feed directly into business electricity costs.
During the first week of March, wholesale gas prices surged dramatically following concerns over supply disruption linked to the Iran conflict and shipping risks in the Gulf region.
This caused some suppliers to temporarily pause quoting while reassessing risk exposure. As pricing returns to the market, electricity tariffs have generally increased compared with February levels, although competitive options are still available for businesses that compare suppliers.
March 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 |
27.34p |
83.28p |
| Small business |
5,000 – 14,999 |
27.01p |
88.19p |
| Medium business |
15,000 – 24,999 |
27.10 |
81.19p |
| Large business |
25,000 – 49,999 |
27.30p |
126.99p |
| Very large business |
50,000+ |
Bespoke Pricing
|
Bespoke Pricing
|
*Electricity prices shown are indicative January 2026 business rates.*
The difference between the most competitive rates and average market prices remains significant. Businesses that compare suppliers regularly – particularly those approaching renewal – are often able to secure much better pricing than those left on rollover or deemed tariffs
👉 Compare live electricity prices: https://www.wesave.co.uk/compare-business-electricity/
Business Gas Prices – March 2026
Business gas markets have seen the most dramatic movements in recent weeks, with wholesale prices reacting quickly to geopolitical developments.
Early March saw a sudden spike in gas prices as the conflict involving Iran raised concerns over global supply chains and LNG shipments. Analysts reported that UK wholesale gas prices jumped sharply as shipping disruptions and supply risks were priced into the market.
While the market has since stabilised somewhat, gas prices remain higher than they were in February and are likely to remain sensitive to developments in global energy markets.
For businesses with significant gas usage – particularly in sectors such as hospitality, manufacturing and food production – reviewing contract options during volatile periods can help secure cost certainty.
March 2026 Gas Price Comparison Table
| Business Size |
Annual Usage (kWh) |
Average Gas Rate (p/kWh) |
| Micro business |
0 – 4,999 |
8.72p |
| Small business |
5,000 – 14,999 |
8.97p |
| Medium business |
15,000 – 24,999 |
8.83p |
| Large business |
25,000 – 49,999 |
8.52p |
| Very large business |
50,000+ |
Cheaper Bespoke Pricing
|
*Gas prices shown are indicative January 2026 business rates.*
With standing charges continuing to rise year-on-year, switching supplier can deliver meaningful savings not only on unit rates but also on fixed daily costs.
👉 Compare live gas prices: https://www.wesave.co.uk/compare-business-gas/
What’s Driving March’s Business Energy Prices?
1. Geopolitical tensions and supply risks
The escalation of conflict involving Iran has disrupted energy markets globally. Concerns over shipping routes and the Strait of Hormuz – responsible for roughly 20% of global oil and gas transit – have increased volatility across oil, gas and electricity markets.
2. Wholesale gas price spikes
European and UK wholesale gas markets reacted rapidly to the crisis, with prices rising sharply in early March as traders priced in potential supply disruption and LNG shortages.
3. Rising non-commodity costs
Network charges, environmental levies and supplier operating costs continue to account for a growing proportion of business energy bills. This means standing charges and contract structures now play a larger role in total energy costs.
3. No price cap for businesses
Unlike domestic customers, business energy contracts are not price-regulated. Each supplier sets its own rates, which can create large price differences between the cheapest available tariffs and average market pricing.
Why Now Is a Good Time to Compare Business Energy Prices
Periods of market volatility can sometimes create short windows where competitive pricing becomes available as suppliers re-enter the market.
Businesses that compare energy prices early may benefit from:
- Access to competitive fixed-rate contracts
- Protection from further wholesale market volatility
- Improved cost certainty for the year ahead
- Broker-negotiated and exclusive supplier deals
- Potential savings on both unit rates and standing charges
Switching supplier is straightforward, your energy supply is never interrupted, and all that’s needed is a recent bill.rward, your supply is never interrupted, and all that’s needed is a recent energy bill.
March Energy Checklist for UK Businesses
As energy markets remain volatile, businesses should:
- Check their contract end date
- Review annual consumption and standing charges
- Compare current electricity and gas prices
- Consider fixing rates for 12–36 months where appropriate
- Avoid expensive rollover or deemed tariffs
Final Thoughts
Business energy prices in March 2026 reflect a market that has been shaken by geopolitical events but is gradually stabilising as suppliers return to quoting.
The recent volatility highlights how quickly global events can influence UK energy costs. For businesses approaching renewal, comparing suppliers remains the most effective way to secure competitive pricing and avoid unnecessary cost increases.
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/