December 2025 Energy Update

Market Update

Milder than anticipated weather and high levels of liquefied natural gas (LNG) imports have facilitated a significant reduction in energy commodity costs. November set a record for global LNG deliveries. Further, large quantities of additional supplies are expected to enter the market in February, allaying fears of a late winter shortage.

The prospects of a potential settlement of the Russian invasion of Ukraine continue to ebb and flow, influencing price trends. Any settlement would require the lifting of the embargoes on Russian oil and gas, which would add further downward pressure on prices.

Business Energy Costs

The sample highlights a 10% reduction in commodity costs over the last 3 weeks, with further declines expected over the winter season. The challenge for electricity is that the upward trend of non-commodity costs will limit the extent to which contract rates will fall. Gas non-commodity costs don’t face the same pressure, and further contract rate reductions are anticipated. Our advice remains that long-term electricity contracts and short-term gas contracts are likely to be in the customer's best interest.

Both electricity and gas average contract rates are markedly lower than the sample of 20th November. The electricity is in line with the longer-term average for 2025, while the gas is lower.

Supplier Challenges

Unfortunately, there is no relatable improvement in the problems that suppliers and unscrupulous sales agents present to businesses. Only, yesterday we assisted a customer taking on a new business. Having submitted the online CoT form, the customer was asked to call to confirm the unnamed energy supplier had received the web form. The call took them through to the supplier's sales team, who opened with “we are legally obliged to offer you rates”. When the customer said they weren’t interested, they said we have to offer you rates and rapidly reeled off prices, at the end saying to the customer – “I need you to say yes, you understand”

Understand what:
1. The energy supplier have accepted your change of tenancy.
2. The energy supplier have offered you rates.
3. You have agreed a contract with the energy supplier, even though you don’t know how much or for how long.

The customer did the only sensible thing you can do – hung up! Clearly, the leopard hasn’t changed its spots.

Nationwide Energy offers the support you need to navigate you through these practices from certain energy suppliers to make your next energy contract transition smoother, deal with supplier issues, or review your energy consumption.

Contact Us Today

Tel: 02476 328995

Email: info@nationwide-energy.co.uk

https://nationwide-energy.co.uk/free-guides-to-help-your-business/

Graph produced by Cornwall Insight in conjunction with Drax Energy Solutions