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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.

November’s UK energy markets saw sharp short-term swings in day-ahead prices as wind generation fluctuated, while forward contracts remained stable, signalling manageable winter conditions ahead. Government updates on industrial energy policy, nuclear levies, and North Sea plans add further context for businesses planning renewals. Dyce Energy helps SMEs navigate market volatility with fixed-price contracts, renewable options, and expert guidance.