Energy Update — 14 May 2026

Market Update

The ceasefire between the US and Iran is close to breaking point. Trump called Iran's latest proposals "totally unacceptable" on 10 May, and the Strait of Hormuz, through which around a fifth of global oil and gas flows, remains almost entirely closed. Shipping is running at roughly 5% of pre-conflict levels, and the price impact built up since February will not ease quickly.

EU gas storage sat at around 42% in early May, with Parliament loosening this summer's filling targets. The rebuild is tighter than usual. Qatar's LNG halt keeps roughly a fifth of global supply offline, and the International Energy Agency (IEA) warns the global LNG expansion is delayed by at least two years. Prices are unlikely to come down quickly even if talks progress.

May has been notably cold for the time of year. Northerly winds and overnight frost have kept heating demand higher than usual for late spring, adding to the upward pressure on gas already coming from the supply side.

Business Energy Costs

Gas contract rates remain well above pre-conflict levels. Commodity has eased from the March peak (5.2p per kWh in our table) but still sits well above pre-conflict. Electricity has followed gas higher and is also elevated. Cornwall Insight's latest forecast for the July domestic price cap has risen to around £1,844 from £1,641 this quarter, a direction of travel that feeds into business bills too, with the Transmission Network Use of System (TNUoS) rise from 1 April compounding the wholesale move.

	Date	Commodity Cost	Av Unit Rate	Av Standing Charge
Electricity	09/03/2026	11.1p	23.5p	£2.28
	13/04/2026	9.4p	26.5p	£1.85
	13/05/2026	9.8p	27.3p	£1.34
Gas	09/03/2026	5.2p	6.1p	99p
	13/04/2026	3.9p	7.1p	£1.72
	13/05/2026	3.9p	6.8p	£1.71

TNUoS is now the biggest standing-charge line on most business electricity bills, and for multi-site operators that impact lands on every site. This part of the bill is structural and will not ease whether the Middle East situation resolves or not. If your contract renews in the next three months, it is worth asking the supplier whether the standing charge is fixed or whether further increases can be passed on. If you are six months or more from renewal, waiting on gas may still make sense, but the standing-charge side of the bill is not coming down in that window.

Supplier Challenges

The same supplier problems keep coming up: changes of tenancy being delayed (especially tenancies at will, where suppliers are demanding more information), billing issues forcing escalation, and high disconnection pressure on accounts in debt. For an incoming licensee, sitting on a deemed rate during a change-of-tenancy delay means paying around double a contract rate, which adds up fast in the first weeks of trading. These are exactly the situations where having someone in your corner makes the difference. Speak to us before it costs you.

Graph produced by Cornwall Insight in conjunction with Drax Energy Solutions, 14/05/2026.