In the short term, this is putting more pressure on liquefied natural gas (LNG) supplies, given increased demand from both European and Asian markets.
This has not yet had any significant impact on UK or EU reserves, which are stable at 65% & 82% respectively.
The UK’s reserves are only sufficient for around 12 days at winter demand levels. Continuing North Sea pipeline supplies means we are much less reliant on stored gas. The EU’s reserves are around 30 times larger than the UK’s, reflecting its greater reliance on storage.
| Commodity Cost | Av Unit Rate | Av Standing/C | ||
|---|---|---|---|---|
| Electricity | 18/09/2025 | 7.9p | 24.9p | £1.25 |
| 13/10/2025 | 7.7p | 26p | £1.55 | |
| 18/11/2025 | 7.8p | 24.5p | £1.88 | |
| Gas | 18/09/2025 | 2.8p | 5.9p | £1.01 |
| 13/10/2025 | 2.7p | 5.5p | £1.38 | |
| 18/11/2025 | 2.7p | 5.9p | £2.59 |
Business energy costs
Energy costs remain one of the top three expenses for most hospitality businesses. Costs, though higher than long-term averages, have remained stable for several months.
However, individual customer rates vary by up to 35% for electricity and 50% for gas, depending on credit profile and supplier attitude to risk.
New businesses face the greatest challenge in agreeing contracts, often leading to them paying higher rates or contracting with suppliers who have more aggressive T&C’s.
In terms of cost outlook, expanding LNG supplies in 2026 will support falling gas costs, leading to lower contract rates. However, electricity prices are likely to remain stable or rise due to increasing non-energy costs.
Given the winter season, businesses with flexible purchase strategies may benefit from waiting until spring to make further energy purchases.
Supplier challenges
Tomato Energy ceased trading earlier this month, affecting around 8,000 business customers. This failure reflects Tomato’s business model, not wider market instability. Ofgem has appointed BG as the new supplier.
No doubt pubs will be inundated by sales calls urging them to sign with another supplier now. However, supplies remain secure, so it’s best to hold off switching until the BG offer is known and compare options then.
Ongoing supplier service issues, from change of tenancy delays to billing disputes, continue to challenge the hospitality sector. Having a trusted partner can make all the difference in resolving these issues quickly.
Nationwide Energy’s experienced team works directly with suppliers to achieve faster, fairer outcomes. Each customer also benefits from a dedicated account manager for regular updates and contract support.
Contact Nationwide Energy today
Tel: 02476 328995
Email: info@nationwide-energy.co.uk
Website: https://nationwide-energy.co.uk/free-guides-to-help-your-business/
