GLEG UK Energy Market Update 06-07-26…
July 6, 2026
If your business has significant energy spend, current forward wholesale energy market could present one of the best long-term buying opportunities seen in recent years.
European gas for 2030 is currently trading at around 2.1p/kWh, with electricity at approximately 6.0p/kWh, among the lowest forward prices seen in the past six years. With contracts now available through to 2031, now is an ideal time to review your long-term procurement strategy.
Why Are Forward Prices Attractive?
The wholesale energy market is currently in backwardation, meaning future energy prices are lower than those for near-term delivery.
While no one can predict where markets will move next, today’s forward curve provides an opportunity to secure a proportion of your future energy requirements at historically competitive prices.
This isn’t about timing the market, it’s about reducing risk and improving cost certainty.
The Benefits of a Long-Term Strategy
Energy is one of the largest controllable operating costs for many businesses, yet procurement is often only reviewed when contracts approach renewal.
A structured purchasing strategy helps spread energy purchases over several years, reducing exposure to market volatility while improving financial planning.
Benefits include:
- Greater certainty over future energy costs
- Improved budgeting and cashflow forecasting
- Reduced exposure to wholesale market volatility
- Increased confidence when pricing long-term customer contracts
- Protection against geopolitical and supply chain disruption
Is Now the Time to Review?
No one knows where wholesale energy prices will be in six or twelve months’ time. However, with forward prices available through to 2031 at historically attractive levels, now is a good opportunity to review whether your procurement strategy aligns with your business objectives.
At GLEG, we help businesses develop procurement strategies that balance flexibility with long-term cost certainty, giving greater confidence over future energy expenditure.