Business energy market update
November 2026
Keeping up to date with the energy market can help you to better understand the factors that affect your business costs. We’ve rounded up the key developments from the past month, what’s driving them, and what they could mean for your business.
UK wholesale energy prices continue to rise
Last month, we reported that energy prices were on the rise – and this trend has continued. From 29th September to 27th October, the price of gas increased by 37%1, and the price of electricity rose by 28% for summer 20272, based on end of day settlement prices.
Ongoing disruption in the Middle East remains a key driver of this rise, with renewed concern that there may be further disruption to gas production and transportation. Storage of energy in Europe is also noticeably lower than normally expected at this time of year, although Europe is still expected to meet its amended storage target. In addition, colder weather is expected in the coming weeks, alongside some outages in Norwegian energy production, weaker production from nuclear power stations, and quite variable wind availability. These factors have further reduced energy supply in the short-term.
How UK wholesale gas prices moved in September and October 20261
How UK wholesale electricity prices moved in September and October 20262
Why wholesale energy price changes matter to businesses:
- Wholesale energy prices are one of the factors that influence the price businesses pay for energy. If your contract is approaching renewal, changing market conditions may affect the prices available to you.
- Businesses who are nearing renewal will need to decide how much certainty they would like to secure with a fixed contract, vs. the possibility that prices may ease in the coming months.
Don't miss: what businesses need to know about the Autumn Budget 2026
At the end of last month, the Chancellor delivered the Autumn 2026 budget, setting out measures that will impact British businesses in the months and years ahead. Take a look at our summary of the key highlights that businesses should be aware of:
What could the Jackdaw gas field mean for UK energy supply?
The Government has agreed that the regulator can grant consent for gas production to begin at the Jackdaw gas field in the North Sea. It will start to supply gas to British homes and businesses in the coming few weeks. At its peak, it’s expected to increase domestic gas production by around 6%.
The decision comes at a time when geopolitical events continue to create volatility in the global energy market. Producing more gas in Britain could strengthen energy security and reduce our reliance on imported supplies.3
Gas produced in the North Sea is still sold into an interconnected global market though, so wholesale energy prices will continue to be influenced by events affecting global supply. However, the company that produces gas from Jackdaw will make profit in the UK and pay taxes on those profits. The Government is expected to receive around £1.5 billion in taxes from Jackdaw over its lifetime.4 There’s no guarantee that this money will be used to support businesses or reduce energy costs. However, the Government may choose to do what they did in 2022, when they implemented a levy on the oil and gas sector during the energy crisis, and this money was used to fund cost-of-living support for British families.5
Why the Jackdaw gas field matters to businesses:
- Increasing the amount of energy that’s produced in Britain could slightly reduce our reliance on imported supplies, which is important when those supply chains are disrupted.
- However, this doesn’t necessarily mean lower prices. Britain’s gas prices are still shaped by the global market, so producing more energy in Britain won’t directly reduce energy prices – unless the Government chooses to direct some of the extra tax that’s generated by the gas field into energy cost support schemes.
Businesses considering price increases due to rising energy cost
Around 1 in 6 British businesses expect to increase their prices in November 2026. This is 7 percentage points higher than last year. Rising energy costs are one factor behind this: 32% of businesses who are planning to increase prices said energy prices were influencing that decision.6
The impact is particularly significant in accommodation and food services, where 54% of businesses planning price rises cited energy costs as a key factor.
Why this matters to businesses:
- Rising energy costs can affect more than your energy bill, putting pressure on margins and potentially influencing the prices you charge customers.
- Understanding and managing your energy costs is important to ensure you make informed decisions around future business planning, pricing and budgets.
Ready to review your business energy options?
Understanding what's happening in the energy market can help you make more informed decisions for your business. If you're thinking about changing business energy supplier, we're here to support you every step of the way.
Check your eligibility: British Industrial Competitiveness Scheme
In our August 2026 update, we shared Government plans to launch the British Industrial Competitiveness Scheme (also known as BICS). This is a new scheme aimed to cut energy bills for over 10,000 eligible manufacturers. Applications for this scheme are still open and close on 30 November 2026.
Frequently asked questions about this month’s energy news
What is the Jackdaw gas field?
Jackdaw is the name of a gas field in the North Sea, around 150 miles east of Aberdeen. The Government has given approval for gas production to begin at the site.
Will the Jackdaw gas field bring energy prices down?
Not necessarily. Increasing domestic gas production could help strengthen Britain’s energy security and reduce some reliance on imports. However, UK gas is still traded as part of an interconnected market, so prices remain influenced by international supply and demand.
Why are wholesale energy prices rising?
Several factors are causing wholesale prices to rise - including ongoing geopolitical uncertainty in the Middle East, lower-than-expected European energy storage levels, outages in Norwegian energy production and variable wind generation. Together, these factors have increased uncertainty over energy supply as we head towards winter.
In this article
- UK wholesale energy prices continue to rise
- What could the Jackdaw gas field mean for UK energy supply?
- Businesses considering price increases due to rising energy cost
Related articles
Business energy market update: August
The views, opinions and positions expressed within the British Gas business Blog are those of the author alone and do not represent those of British Gas. The accuracy, completeness and validity of any statements made within this blog are not guaranteed. British Gas accepts no liability for any errors, omissions or representations. The copyright in the content within the British Gas business Blog belongs to the authors of such content and any liability with regards to infringement of intellectual property rights remains with them. See the Fuel mix used to generate our electricity. Read about making a complaint about your business energy.
Additional information
ICE UK Baseload Gas Futures, 28 October 2026
ICE UK Baseload Power Futures, 28 October 2026
Business insights and impact on the UK economy, ONS Gov, 22 October 2026
