October 2025 Energy Update

Market Update

Commodity costs are higher than they were a year ago. However, market sentiment is more positive due to strong gas supply factors:-

1. Global LNG production will increase over the next few years, mainly from the US and Quatar.
2. Asian gas demand remains muted, and increases in Chinese demand may be met by Russian pipeline gas.
3. Global gas prices seem set to fall over the next few years as supply outstrips demand, with producers having little choice but to pump gas at lower prices.
4. European gas reserves are currently at 85% and the UK is at 47%, providing reassurance over capacity.

An early cold snap in Europe could push prices higher, however, with increasing gas and renewable generation, the likelihood of significant commodity price increases seems limited.

I expect gas prices to be lower next year and lower again in 2027. While this will put some downward pressure on electricity costs, the increases in non-commodity costs etc., will limit or prevent price falls.

Business Energy Costs

Commodity and contract costs have remained stable over the last month or so. The last six months have seen a modest reduction in gas prices, mirroring a drop in the commodity cost. However, electricity costs have been maintained.

Suppliers have discretion as to how they allocate costs and some contract offers reflect a higher standing charge and lower unit rate than others. It’s therefore crucial to review each offer and understand how they meet your needs and which offer the lowest cost. Seeking the advice of a trusted partner is an important step in making the right choice.

It’s also important to factor in the terms and conditions of different suppliers. An increasing number of suppliers offer rates which are not fully fixed, varying some charges and increasing costs. Customer service levels and the potential for extra charges also need to be considered. High-pressure sales calls from unknown parties rarely give the wider context of the products they promote. This type of market review relies on the expertise of a consultant, like Nationwide Energy, to present the different options and let you decide which suits you best.

Supplier Challenges

Energy suppliers continue to present a series of challenges. Most notably many are now demanding time & date-stamped meter photographs to process changes of tenancy. Some are also rejecting images stamped by what the refer to as a third-party app. If you thought it was easy to take a meter picture, think again!

Suppliers continue to be slow to respond. As communication is increasingly pushed to email and webchat, it’s important to present a customer’s situation clearly, stressing all the key issues. Our Contracts & Billing teams know what is needed to get the best results from both suppliers and the Energy Ombudsman.

Nationwide Energy offers the support you need to make your next energy contract transition smoother, deal with supplier issues, or review your energy consumption.
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Tel: 02476 328995
Email: info@nationwide-energy.co.uk
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Graph produced by Cornwall Insight in conjunction with Drax Energy Solutions, 02/10/2025