UK business energy prices have continued to rise as we move into September 2026, with both electricity and gas rates now considerably higher than they were earlier in the summer.
The main driver remains the escalating conflict involving Iran and the United States, with renewed attacks on vessels and disruption around the Strait of Hormuz once again raising concerns over global oil and LNG supplies. Shipping through the region has fallen significantly, adding further risk to international energy markets.
This has fed directly into UK wholesale prices. By early September, wholesale gas and electricity contracts had risen sharply compared with a month earlier, reversing much of the improvement businesses saw during June and the first half of July.
There is now another factor coming into focus: winter. European gas storage levels are considerably lower than at the same point in recent years. Although there is currently no immediate concern over security of supply, lower reserves leave the market more exposed to a cold winter or further disruption to global gas supplies.
For UK businesses, this means the energy market has entered September in a very different position from the relatively calmer conditions seen at the beginning of summer.
September Market Snapshot
📈 Electricity prices have risen sharply
Wholesale electricity prices have increased considerably over the past month, with higher gas costs and renewed geopolitical uncertainty feeding through into supplier pricing.
🔥 Gas remains the biggest market concern
UK wholesale gas prices have risen particularly strongly, driven by concerns around global LNG supplies, the Middle East and preparations for winter.
🌍 Iran and the Strait of Hormuz remain key drivers
Renewed tensions involving Iran and continued disruption around the Strait of Hormuz are adding further uncertainty to global oil and LNG markets.
❄️ European gas storage is lower than usual
Europe is heading towards winter with lower gas storage levels than in recent years, leaving wholesale markets more sensitive to colder weather or further supply disruption.
🤝 Suppliers are still actively quoting
Despite rising wholesale costs, competition remains healthy across the UK business energy market, with suppliers continuing to offer a broad range of fixed-price contracts.
Business Electricity Prices – August 2026
Business electricity prices have moved higher again during recent weeks, continuing the upward trend that began during the latter part of the summer.
Wholesale electricity contracts have been affected by the renewed escalation in the Middle East, but gas remains particularly important to the UK electricity market. Gas-fired generation continues to play a significant role in producing electricity, meaning sharp movements in wholesale gas prices can quickly feed through into electricity pricing.
The scale of the recent movement is significant. By early September, near-term wholesale electricity prices were around a quarter higher than they had been approximately a month earlier.
This has begun feeding through into the fixed rates available to UK businesses. Suppliers remain active and competition continues, but the cheaper pricing available earlier in the summer has become increasingly difficult to find.
There are still meaningful differences between suppliers, however. Contract length, meter type, consumption, location and the structure of standing charges can all significantly affect the final annual cost, which is why comparing the complete contract remains more useful than looking at the headline unit rate alone.
September 2026 Electricity Price Comparison Table
|
Business Size
|
Annual Usage
|
Average Electricity Rate
|
Average Standing Charge
|
|
Micro Business
|
0–4,999 kWh
|
27.20p/kWh
|
79.61p/day
|
|
Small Business
|
5,000–14,999 kWh
|
26.90p/kWh
|
87.83p/day
|
|
Medium Business
|
15,000–24,999 kWh
|
26.88p/kWh
|
93.03p/day
|
|
Large Business
|
25,000–49,999 kWh
|
26.96p/kWh
|
147.91p/day
|
|
Very Large Business
|
50,000+ kWh
|
Bespoke Pricing
|
Bespoke Pricing
|
Electricity prices shown are indicative average September 2026 business rates based on market data reviewed on 4 September 2026. Actual prices vary depending on consumption, location, meter type, supplier and contract length.
Electricity prices shown are indicative average September 2026 business rates based on market data reviewed on 4 September 2026. 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 – September 2026
Business gas has experienced an even more pronounced increase, with wholesale prices climbing sharply over recent weeks.
The renewed escalation involving Iran has placed further pressure on global energy markets. The Strait of Hormuz is particularly important because of the volumes of oil and LNG normally transported through the region, meaning disruption or the threat of further disruption can quickly affect international gas prices.
For Europe, this comes at a particularly sensitive time.
European countries would ordinarily be building gas reserves ahead of the winter heating season. However, storage levels are considerably lower than normal for this point in the year. This means Europe has less of a buffer should there be further disruption to LNG supplies or a colder-than-expected winter.
Importantly, lower storage does not currently mean Europe is expected to run out of gas. The European Commission has said there is no immediate security-of-supply risk, highlighting greater LNG import capacity, more diversified supplies and lower gas demand than during the 2021/22 energy crisis.
Nevertheless, the combination of lower storage and geopolitical uncertainty is creating additional risk in wholesale markets and that is being reflected in the prices businesses are currently being offered.
September 2026 Gas Price Comparison Table
|
Business Size
|
Annual Usage
|
Average Gas Rate
|
Average Standing Charge
|
|
Micro Business
|
0–4,999 kWh
|
10.12p/kWh
|
46.85p/day
|
|
Small Business
|
5,000–14,999 kWh
|
9.00p/kWh
|
59.84p/day
|
|
Medium Business
|
15,000–24,999 kWh
|
8.94p/kWh
|
75.65p/day
|
|
Large Business
|
25,000–49,999 kWh
|
8.97p/kWh
|
117.13p/day
|
|
Very Large Business
|
50,000+ kWh
|
Cheaper Bespoke Pricing
|
Bespoke Pricing
|
Gas prices shown are indicative average September 2026 business rates based on market data reviewed on 4 September 2026. 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 September?
1. Renewed US-Iran escalation
Geopolitical risk remains the dominant factor affecting energy markets. Renewed attacks involving the US and Iran have increased concerns surrounding energy exports from the Middle East and pushed additional risk into wholesale oil and gas prices.
2. Continued disruption around the Strait of Hormuz
The Strait of Hormuz remains one of the most important energy shipping routes in the world. Reduced tanker traffic and the risk of further disruption continue to influence global oil and LNG markets.
3. Lower European gas storage
Europe is approaching winter with considerably lower gas reserves than in recent years. EU storage was around 67% full in early September, increasing the market’s sensitivity to colder weather or further disruption to LNG supplies.
4. Gas is pulling electricity higher
Gas remains an important source of electricity generation in the UK. When wholesale gas prices rise sharply, electricity prices are often affected too — one reason we are currently seeing both markets moving in the same direction.
5. Winter is getting closer
As autumn approaches, attention naturally shifts towards winter demand. Weather forecasts, LNG availability, European storage and geopolitical developments are therefore likely to become increasingly important to energy pricing over the coming weeks.
How Much Have Prices Changed?
The direction of travel since early summer has changed considerably.
June and early July brought falling prices and increased supplier competition. That began to reverse later in July and throughout August as tensions involving Iran returned.
By early September, UK wholesale gas was approximately 30% higher over a 30-day period, while near-term electricity was approximately 25% higher.
The rates available directly to businesses do not necessarily move by exactly the same percentages – supplier purchasing strategies, contract duration and non-commodity costs all affect final quotations, but the wholesale movement explains why fixed business tariffs have become more expensive.
Should Businesses Fix Their Energy Prices Now?
There is no reliable way of knowing whether energy prices will rise or fall from here.
A de-escalation in the Middle East, improved LNG availability or milder winter forecasts could put downward pressure on prices. Equally, further disruption around the Strait of Hormuz, colder weather or concerns around European gas reserves could push prices higher again.
For businesses approaching the end of their current contract, the important point is that you don’t necessarily need to wait until your existing deal expires to review the market.
Many business energy contracts can be arranged months in advance, allowing businesses to compare current fixed rates against their existing position and decide whether securing a future contract makes sense.
September Energy Checklist
✓ Check when your current electricity and gas contracts end
✓ Find out whether you’re already within your renewal window
✓ Review your latest annual consumption figures
✓ Compare several suppliers rather than relying solely on your existing supplier’s renewal offer
✓ Compare the total annual cost, including standing charges, rather than unit rates alone
✓ Consider different contract lengths rather than automatically choosing the cheapest headline rate
✓ Keep an eye on market movements as we approach winter
Final Thoughts
September has started with UK business energy markets under renewed pressure.
After the improvements seen earlier in the summer, escalating tensions involving Iran, disruption around the Strait of Hormuz and lower European gas storage have combined to push wholesale gas and electricity prices considerably higher.
There are some important differences from previous energy crises. European gas supplies are more diversified, LNG infrastructure has expanded and overall demand has fallen, meaning lower storage levels do not automatically translate into a supply shortage.
However, the market currently has less room to absorb another major shock.
For businesses with contracts due for renewal over the coming months, it may therefore be worth reviewing current options now rather than waiting until the contract is close to expiry. Comparing the market doesn’t commit you to fixing immediately, but it does give you a clearer picture of the rates currently available and how they compare with your existing costs.
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/