Energy Update — 8 January 2026

Market Update

Key market drivers remain global geopolitical events and weather. Gas prices dropped in November, rebounding in mid-December. Electricity costs have fallen, but not as quickly. Commodity costs are anticipated to fall in late January/February.

In terms of events, the US’s removal of Venezuelan President Maduro has caused major consternation. The increased availability of Venezuelan oil will affect those commodity prices. However, Venezuela has little role in global gas production or influence on prices.

More importantly, despite a Europe-wide cold snap, with gas reserves being depleted at rates last seen during the 2018 Beast from the East. There has been no significant impact on energy costs, which have softened in the last few days. A clear sign of market confidence and security of supply.

Business Energy Costs

The last update was sent around the commodity cost low point. While gas has returned to a similar level, electricity is higher. Both electricity and gas contract rates are higher, electricity being markedly so. The current sample of prices contains more above-average contract rates. It remains to be seen if missing sub-4p gas and low 20’s electricity rates remain unavailable in the coming weeks.

		Commodity Cost	Av Unit Rate	Av Standing/C
Electricity	20/11/2025	7.7p	24.7p	£1.77
	11/12/2025	7p	24.3p	£1,40
	08/01/2026	7.4p	25.6p	82p
Gas	20/11/2025	2.6p	5.9p	£1.10
	11/12/2025	2.3p	5.2p	£2.04
	08/01/2026	2.3p	5.5p	£1.86

Supplier Challenges

Regrettably, there is no evidence that the festive period has improved the attitude or conduct of suppliers.

Nationwide Energy offers the support you need to make your next energy contract transition smoother, deal with supplier issues, or review your energy consumption.

Graph produced by Cornwall Insight in conjunction with Drax Energy Solutions, 08/01/2026.