Dyce Energy: Business Energy Provider

February started calmly, with falling wholesale gas and power prices driven by milder weather and strong wind generation. But on 28 February, geopolitical escalation in the Gulf transformed the outlook overnight. With the Strait of Hormuz effectively shut, Qatar halting LNG production and European gas prices jumping 25% in a single day, UK businesses now face renewed wholesale volatility just weeks before April’s 60%+ TNUoS increases take effect. In this month’s Energy Market Update, we break down what happened, what could move prices next, and how to protect your energy budget.

January 2026 highlighted just how volatile the UK energy market can be. Wholesale gas prices surged more than 40% during the month as cold weather increased demand, gas storage levels dropped below last year’s levels, and competition for LNG cargoes intensified. Power prices also spiked, driven by low wind generation and heavier reliance on gas-fired power stations. With European storage sitting well below 2025 levels and April’s regulatory cost increases approaching, businesses face continued uncertainty. This energy market update explores what drove January’s price movements, key policy and infrastructure developments, risks to watch in February, and practical steps businesses can take to lock in price certainty and protect budgets.

Wholesale energy prices eased in 2025, but stability is still fragile. Gas and power remain well above pre-crisis levels, while rising grid costs, new nuclear charges, and geopolitical risk continue to pressure business energy bills. This update breaks down what moved prices in 2025, what could shake markets in 2026, and how UK businesses can protect their budgets before regulatory costs rise again.