As we move into May 2026, UK business energy markets are beginning to stabilise following the sharp volatility seen in March and early April. The geopolitical tensions involving Iran – particularly disruption to key shipping routes such as the Strait of Hormuz – triggered a significant spike in global energy prices earlier in the year, with wholesale gas prices rising sharply in response to supply concerns.
In recent weeks, wholesale markets have eased slightly from their peaks, supported by improved supply conditions, increased gas flows and lower seasonal demand. However, prices remain elevated compared to the start of 2026, and the market continues to react quickly to any geopolitical developments.
This shift has been reflected in supplier behaviour. After many providers withdrew pricing during peak volatility, most have now returned to the market and are actively quoting again – although pricing remains cautious and can change quickly.
Alongside wholesale movements, non-commodity costs such as network charges, policy levies and standing charges continue to make up a growing share of business energy bills, reinforcing the importance of comparing total contract costs rather than focusing solely on unit rates.
In this May 2026 update, we outline the latest indicative business electricity and gas prices available across the market to provide a clear view of current conditions.
Business Electricity Prices – May 2026
Electricity pricing continues to reflect conditions in the gas market, with wholesale gas costs still acting as the primary driver of UK electricity prices.
While electricity prices have softened slightly compared to the peaks seen during March, they remain higher than earlier in the year. The UK market remains particularly exposed due to its reliance on gas-fired generation, meaning global gas price movements continue to feed directly into electricity pricing.
As suppliers have returned to quoting, the spread between competitive fixed deals and average market pricing remains wide. This creates an opportunity for businesses that compare suppliers to secure more favourable rates.
May 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 |
25.93p1p |
79.10p |
| Small business |
5,000 – 14,999 |
25.82p |
90.20p |
| Medium business |
15,000 – 24,999 |
25.96p |
90.20p |
| Large business |
25,000 – 49,999 |
25.84p |
133.92p |
| Very large business |
50,000+ |
Bespoke Pricing
|
Bespoke Pricing
|
*Electricity prices shown are average May 2026 business rates.*
The difference between competitive market rates and rollover tariffs remains significant. Businesses that actively review their contracts – particularly during periods of market adjustment – are best placed to secure strong pricing.
👉 Compare live electricity prices: https://www.wesave.co.uk/compare-business-electricity/
Business Gas Prices – May 2026
Business gas prices have shown clearer signs of easing compared to electricity, following the sharp increases seen in March.
Recent data indicates that wholesale gas prices have fallen back from their highs, supported by improved supply, increased LNG availability and reduced demand as temperatures rise. In some cases, short-term wholesale prices have even seen notable week-on-week declines after the initial shock of the crisis.
Despite this, gas prices remain sensitive to global developments, and any escalation in geopolitical tensions could quickly reverse recent improvements.
For businesses with significant gas usage, this remains a key period to assess contract options while pricing conditions are relatively more favourable than during peak volatility.
May 2026 Gas Price Comparison Table
| Business Size |
Annual Usage (kWh) |
Average Gas Rate (p/kWh) |
| Micro business |
0 – 4,999 |
8.97p |
| Small business |
5,000 – 14,999 |
8.67p |
| Medium business |
15,000 – 24,999 |
8.56p |
| Large business |
25,000 – 49,999 |
8.52p |
| Very large business |
50,000+ |
Cheaper Bespoke Pricing
|
*Gas prices shown are average May 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 Mays’ Business Energy Prices?
1. Easing wholesale markets
After the sharp spikes seen in March, wholesale gas and electricity prices have softened slightly. Improved supply conditions and reduced seasonal demand have helped stabilise the market.
2. Ongoing geopolitical risk
The conflict involving Iran continues to influence global energy markets. While conditions have improved, prices remain highly sensitive to any further disruption in key supply routes.
3. Supplier pricing returning
Following a period where many suppliers withdrew pricing, most have now re-entered the market. However, pricing remains cautious, with rates adjusting frequently in response to wholesale movements.
4. Rising non-commodity costs
Network charges, environmental levies and supplier operating costs continue to increase, meaning standing charges and overall contract structure play a growing role in total energy costs.
4. No price cap for businesses
Business energy remains unregulated, with suppliers setting their own prices. This creates wide variation between the most competitive deals and average market rates.
Why May Is a Good Time to Compare Business Energy Prices
With markets stabilising but still sensitive, May presents a strong opportunity for businesses to review their energy strategy.
Key advantages include:
- Access to stabilised supplier pricing following recent volatility
- Opportunity to secure fixed rates after market adjustments
- Protection against further geopolitical risk
- Improved cost visibility for the rest of 2026
- Broker-negotiated and exclusive supplier deals
- Potential savings on both unit rates and standing charges
Switching supplier remains simple, with no interruption to your energy supply — and only a recent bill required to get started.
May Energy Checklist for UK Businesses
As market conditions evolve, businesses should:
- Check their contract end date
- Review annual usage 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 May 2026 reflect a market that is beginning to stabilise after a period of significant disruption. While wholesale prices have eased from their recent peaks, they remain above earlier levels and continue to respond quickly to global events.
This environment highlights the importance of timing and comparison. Businesses that proactively review their options – rather than defaulting to renewal – are far more likely to secure competitive pricing and protect themselves from future volatility.
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/