Energy Update — 29 January 2026

Market Update

A marked change has taken place within global energy markets with the 3 key hubs – Europe, the US and Asia all experiencing colder than average temperatures.

Most notably recent the recent Arctic weather over the United States, not only caused a spike in domestic gas demand, but also caused a 20% drop in LNG production. This is particularly significant given the US is Europe’s largest supplier of LNG.

Increased European gas demand is causing a more rapid depletion of reserves. Currently European reserves are at 43%, and the UK 39%. It appears likely that we will end winter with European reserves at less than 25% and potentially below 20% if temperatures remain unfavourable. It’s clear that it will take a lot more to re-fill European gas reserves this summer than previously.

In geo-political terms, a potential US/Iranian conflict is the biggest risk factor. Iran could close the Strait of Hormuz, a narrow channel through which 25% of the world’s oil and gas flows, massively impacting supplies. Understandably, these factors have pushed commodity costs higher. Gas has risen more quickly and has returned to a closely aligned position with electricity.

While the long-term cost of gas looks set to fall due to increasing supplies. In the short and medium term, they could rise due to:-

• Weather risks.
• Geo-political uncertainty.
• Continuing demand over the summer to restock European reserves.

Business Energy Costs

While commodity costs have increased in January, contract rates have shown a modest decline. However, it’s likely that they will start to move upwards as suppliers factor in higher costs and increased risk.

		Commodity Cost	Av Unit Rate	Av Standing/Ch
Electricity	11/12/2025	7p	24.3p	£1,40
	08/01/2026	7.4p	25.6p	82p
	29/01/2026	8.1p	24.4p	£2.76
Gas	11/12/2025	2.3p	5.2p	£2.04
	08/01/2026	2.3p	5.5p	£1.86
	29/01/2026	2.7p	5.3p	£2.73

Supplier Challenges

Suppliers continue to present a range of issues for customers. Changes of tenancy are often delayed by suppliers insisting on business rates documentation. Disregarding the fact that new businesses face waits of up to 14 weeks to receive correspondence. Adding needless delay and expense to what should be a straightforward process.

Pozitive Energy is, again, worthy of mention. They are refusing to release customers to new suppliers, stating that their new supplier won’t take them, due to their T&Cs. The stated conditions are not part of that suppliers Terms and are a fiction spun by Pozitive. Despite Nationwide Energy repeatedly winning complaints raised to the Energy Ombudsman on customers behalf. Pozitive maintain the same discredited practice. A blatant example of profiteering through maximising customer costs.

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, 29/01/2026.