UK business energy prices remain under significant upward pressure as we move into October 2026, with both electricity and gas rates considerably higher than they were earlier in the summer.
The ongoing conflict involving Iran continues to be one of the biggest influences on global energy markets. Although there have been some improvements in oil movements through the Strait of Hormuz, disruption to global gas and LNG supplies remains a concern and wholesale gas prices continue to trade at elevated levels.
September was another particularly volatile month. UK wholesale gas reached its highest level since December 2022 during the month, before prices subsequently eased from their peaks. However, the beginning of October has seen parts of the gas and electricity forward markets begin moving higher again.
For UK businesses, this means supplier pricing remains expensive compared with earlier in the year. Although wholesale markets can move both up and down from day to day, the broader picture remains one of higher energy costs and continued uncertainty as we head towards winter.
October Market Snapshot
📈 Business energy rates remain elevated
The cheaper electricity and gas rates available earlier in the summer have largely disappeared, with businesses now seeing higher fixed-rate offers across much of the market.
🔥 Gas remains the key concern
Wholesale gas prices remain significantly above their pre-conflict levels, with September seeing some of the highest prices experienced since late 2022.
🌍 Iran and global LNG supplies remain major influences
The ongoing conflict involving Iran continues to affect global energy markets. While some oil movements through the Strait of Hormuz have improved, disruption to LNG supplies remains an important risk.
❄️ Winter is now approaching
Lower European gas storage levels mean the market enters the colder months with less of a buffer against increased demand, colder weather or further supply disruption.
⚡ Electricity continues to follow gas
Higher gas costs continue to influence UK electricity prices, while short-term electricity prices are also being affected by changes in wind generation and weather conditions.
Business Electricity Prices – October 2026
Business electricity prices remain considerably higher than they were earlier in the summer, with suppliers continuing to reflect elevated wholesale energy costs in their fixed-rate offers.
Gas remains an important part of this picture. Gas-fired power generation continues to play a significant role in the UK electricity market, meaning increases in wholesale gas prices can quickly feed through into electricity prices.
The beginning of October has also demonstrated the effect renewable generation can have on short-term electricity markets. Reduced wind generation contributed to a sharp increase in day-ahead electricity prices at the beginning of the month, illustrating how weather conditions can influence the amount of gas-fired generation required.
However, businesses should be careful not to judge the market purely by individual daily wholesale movements.
Commercial suppliers purchase energy over different periods and use different hedging strategies, meaning changes in wholesale prices do not necessarily appear immediately in the fixed rates offered to businesses. This is one reason supplier prices can remain elevated even when wholesale markets temporarily fall.
Competition between suppliers also remains important. Rates can vary significantly depending on consumption, meter type, location and contract length, making it worthwhile comparing the total annual cost rather than simply looking at the headline unit rate.v
October 2026 Electricity Price Comparison Table
|
Business Size
|
Annual Usage
|
Average Electricity Rate
|
Average Standing Charge
|
|
Micro Business
|
0–4,999 kWh
|
27.17p/kWh
|
81.98p/day
|
|
Small Business
|
5,000–14,999 kWh
|
27.00p/kWh
|
92.80p/day
|
|
Medium Business
|
15,000–24,999 kWh
|
26.77p/kWh
|
93.77p/day
|
|
Large Business
|
25,000–49,999 kWh
|
26.82p/kWh
|
149.277p/day
|
|
Very Large Business
|
50,000+ kWh
|
Bespoke Pricing
|
Bespoke Pricing
|
Electricity prices shown are indicative average October 2026 business rates based on market data reviewed on 5th October 2026, for 2yr tariffs. Actual prices vary depending on consumption, location, meter type, supplier and contract length.
👉 Compare live electricity prices: https://www.wesave.co.uk/compare-business-electricity
Business Gas Prices – October 2026
Business gas prices remain particularly exposed to developments in the Middle East and the global LNG market.
September saw another significant period of volatility, with UK wholesale gas reaching levels not seen since December 2022. Prices subsequently eased as some energy flows through the Gulf improved, but the market remains considerably more expensive than before the conflict escalated.
The situation surrounding LNG is particularly important for Europe.
With supplies from the Middle East disrupted, European countries have become increasingly reliant on alternative LNG cargoes. This can increase competition with buyers elsewhere in the world and leave prices more sensitive to changes in global supply.
At the same time, European gas storage remains unusually low for this point of the year.
This doesn’t mean Europe is expected to run out of gas. However, lower storage means there is less of a cushion available if Europe experiences a particularly cold winter or another major disruption to global supplies.
For businesses with significant gas consumption, this combination of geopolitical uncertainty, LNG competition and lower storage means gas pricing is likely to remain an important area to watch throughout the coming months.
October 2026 Gas Price Comparison Table
|
Business Size
|
Annual Usage
|
Average Gas Rate
|
Average Standing Charge
|
|
Micro Business
|
0–4,999 kWh
|
9.42p/kWh
|
48.68p/day
|
|
Small Business
|
5,000–14,999 kWh
|
8.50p/kWh
|
54.23p/day
|
|
Medium Business
|
15,000–24,999 kWh
|
8.47p/kWh
|
68.50p/day
|
|
Large Business
|
25,000–49,999 kWh
|
8.40p/kWh
|
105.89p/day
|
|
Very Large Business
|
50,000+ kWh
|
Cheaper Bespoke Pricing
|
Bespoke Pricing
|
Gas prices shown are indicative average October 2026 business rates based on market data reviewed on 5th October 2026, for 2yr tariffs. Actual prices vary depending on consumption, location, meter type, supplier and contract length.
👉 Compare live gas prices: https://www.wesave.co.uk/compare-business-gas/
What’s Driving Business Energy Prices in October?
1. The continuing conflict involving Iran
The Middle East remains one of the most important factors affecting energy prices. The conflict has already had a significant impact on global oil and gas markets during 2026, and uncertainty surrounding future supply continues to add risk to wholesale prices.
2. LNG supply remains disrupted
Although there have been signs of improvement in oil movements through the Strait of Hormuz, LNG supply has been slower to recover. This is particularly important for European gas markets, which have become increasingly reliant on LNG imports.
3. Europe enters winter with lower gas reserves
European gas storage remains substantially lower than would normally be expected heading into winter.
Lower reserves don’t automatically mean higher prices, but they make the market more sensitive to cold weather, increased demand or further disruption to global gas supplies.
4. Weather is becoming increasingly important
As temperatures begin to fall, weather forecasts start to have a much greater influence on energy markets.
Colder-than-expected weather increases heating demand, while periods of lower wind generation can increase the UK’s reliance on gas-fired electricity generation.
5. Supplier rates can lag wholesale movements
One important point for businesses is that wholesale prices and supplier contract rates do not always move at exactly the same time.
Suppliers purchase energy in advance and use different hedging strategies. This means a temporary fall in wholesale prices doesn’t necessarily translate immediately into cheaper business energy contracts.
Have Energy Prices Continued to Rise?
Overall, yes – compared with the cheaper market conditions seen earlier in the summer, business energy costs remain significantly higher.
However, the movement hasn’t been in a straight line.
Wholesale markets experienced considerable volatility during September, reaching significant highs before subsequently easing. Some contracts have then moved higher again as October begins.
This distinction is important. Daily wholesale prices can fall while the longer-term contracts used to price business energy remain elevated.
For businesses, the rates available from suppliers ultimately matter more than an individual day’s wholesale market movement.
What Could Happen to Energy Prices This Winter?
Predicting energy prices remains extremely difficult, particularly with geopolitical events playing such a significant role.
There are factors that could push prices lower. Improved energy flows through the Middle East, greater LNG availability, strong renewable generation or a mild winter could all ease pressure on wholesale markets.
There are equally significant upside risks.
A colder winter, further disruption to LNG supplies, renewed escalation involving Iran or increased competition for global LNG cargoes could push prices higher again.
This means volatility is likely to remain an important feature of the market as we move through autumn and into winter.
Should Businesses Review Their Energy Contracts Now?
Businesses approaching renewal may want to review their position earlier than they normally would.
Commercial energy contracts can often be secured many months before the existing agreement expires, which means businesses don’t necessarily have to wait until the final few weeks of their contract before comparing prices.
Reviewing the market doesn’t mean you have to accept a contract immediately.
It simply allows you to understand the rates currently available, compare different suppliers and contract lengths, and make an informed decision about whether to secure a price or continue monitoring the market.
October Energy Checklist
✓ Check your electricity and gas contract end dates
✓ Find out whether you’re already within your renewal window
✓ Review your latest annual consumption
✓ Compare several suppliers and contract lengths
✓ Compare total annual costs, including standing charges
✓ Don’t assume a fall in daily wholesale prices means supplier rates have fallen
✓ Keep an eye on market developments as winter approaches
Final Thoughts
October begins with business energy prices still considerably higher than they were earlier in the summer.
The ongoing conflict involving Iran, disruption to global LNG supplies and lower European gas storage continue to create uncertainty, while the approach of winter means weather and demand are becoming increasingly important.
However, the market isn’t moving in one direction every day. Wholesale prices have experienced periods of both increases and decreases, and there have recently been some signs of improvement in energy flows through the Gulf.
For businesses, the key is therefore not trying to predict exactly what the market will do next.
Businesses with contracts due for renewal over the coming months may benefit from reviewing the rates currently available and comparing them with their existing position. This provides the information needed to decide whether securing a new contract now makes sense or whether continuing to monitor the market is more appropriate.
Pay less for business energy with WeSave, 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/