Energy Update — 7th August 2026

Market Update

Last fortnight both Gulf shipping routes were under attack. Since then the strikes have paused, talks have restarted, and Iran and Oman have agreed in principle a shipping corridor through the Strait of Hormuz. Wholesale gas is more than 10% off its late-July peak. But nothing is signed and winter gas still costs the same as next month's, so the market is pricing hope, not resolution.

European gas stores were about 58% full at the start of August, the lowest for the season in almost two decades, because filling tanks at war prices makes no sense. England has just had its driest July on record and more heat is due in mid-August, keeping cooling demand high while stores should be filling. That thin buffer is why prices for the months ahead have not fallen as far as the headlines.

The record July cut both ways for pubs and restaurants. Hot weather lifts garden and wet trade but dents food sales and works cellar cooling hard, and JD Wetherspoon has issued its fourth profit warning this year, naming energy among its rising costs. A renewal sorted now beats one forced on you in autumn.

Business Energy Costs

Two things happened at once: wholesale eased, and quoted rates rose as suppliers priced July's spike into offers, the catch-up we warned about last time. Gas commodity cost is now about 2.1p per kWh above its late-February pre-conflict level and electricity about 4.4p, both down from a fortnight ago.

	Date	Commodity Cost	Av Unit Rate	Av Standing Charge
Electricity	25/06/2026	9.0p	27.1p	£1.42
	22/07/2026	12.6p	27.2p	£1.28
	06/08/2026	11.3p	28.4p	£1.21
Gas	25/06/2026	3.3p	6.8p	£0.85
	22/07/2026	5.1p	6.7p	£0.80
	06/08/2026	4.6p	7.1p	£0.79

If the deal is signed, cheaper offers should follow within weeks, and if it falls apart prices go straight back up, so the advice depends on your renewal date. Inside three months, get options now and be ready to sign. Six to twelve months out, don't fix at war-premium prices, and we can watch and flag when to move. Next summer is already priced about a third below this winter, so the market expects this to pass, and our current view is that shorter terms beat locking the premium in.

Supplier Challenges

Suppliers are changing their price books far more often as the market swings, so a good quote today may be gone by the end of the week. If an offer works, sign and return it straight away, because the price is only locked once the supplier accepts the contract. Change of Tenancy paperwork remains the usual friction, and a slow changeover still puts an incoming licensee on deemed rates at close to double a contract price. Get paperwork in early and let us do the chasing.

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, 06/08/2026.