Volatile gas prices put business contracts in focus
UK gas prices rose and fell sharply through April as shipping through the Strait of Hormuz was disrupted. By mid-April, gas futures for winter 2026 were 37% higher than at the start of the year. Energy UK warned that businesses renewing contracts or on variable tariffs could soon see higher prices, and that fixed contracts only protect them until they end.
Non-commodity costs rose too. From 1 April the Climate Change Levy on electricity increased from 0.775p to 0.801p per kWh, alongside higher network charges.
Industrial energy support extended to around 10,000 firms
On 15 April the government said the British Industrial Competitiveness Scheme would cover around 10,000 manufacturers, up from more than 7,000. Eligible firms will be exempted from some levy and capacity costs, cutting electricity costs by up to £40/MWh, with savings starting in 2027.
Firm deadline for half-hourly settlement
Ofgem approved a rule change that stops energy suppliers registering new customers if they have not moved all their meters to half-hourly settlement by 7 May 2027. Half-hourly settlement means the time of day you use energy increasingly shapes what you pay.
El Niño watch issued
On 9 April the US Climate Prediction Center issued an El Niño Watch, giving a 61% chance of El Niño forming between May and July.
Sources
- British Gas Business – Middle East conflict and UK business energy
- Energy UK – MP briefing, updated 30 April 2026
- Liverpool Chamber – Non-commodity cost rises 2026 and 2027
- Morningstar / Reuters – Government to cut electricity bills for more UK firms
- Ofgem – Decision on BSC P487
- NOAA CPC – ENSO discussion, April 2026
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