Energy markets remain under pressure as tensions between the US and Iran continue to escalate.
The ceasefire now looks close to collapse, with President Trump describing Iran’s latest proposals as “totally unacceptable” on 10 May. At the same time, disruption in the Strait of Hormuz – a key route for global oil and gas shipments – continues to impact supply and keep prices elevated.
For pubs and hospitality businesses, this means the expected drop back to pre-conflict energy prices is looking increasingly unlikely in the short term.
Gas markets remain particularly volatile. EU storage levels are lower than normal for this time of year, Qatar’s LNG disruption continues to keep a significant amount of global supply offline, and the International Energy Agency (IEA) has warned that major global LNG expansion projects are now facing delays.
The weather has also played a part. May has been colder than expected, with overnight frosts and northerly winds increasing heating demand across the UK at a time when businesses would normally expect consumption to ease heading into summer.
What this means for pubs and hospitality
Gas contract prices remain well above where they were before the conflict began. Although prices have eased slightly from the peaks seen in March, they are still feeding through into new business energy quotes.
Electricity costs are also continuing to rise. Alongside wholesale increases, pubs are now seeing significantly higher non-commodity costs, particularly TNUoS charges, which increased from 1 April and now form one of the largest standing-charge elements on many business electricity bills.
For leased and tenanted pub operators, this is becoming increasingly noticeable across multi-site estates, where these charges are repeated at every individual premises.
| Date | Commodity cost | Average unit rate | Average standing charge |
|---|---|---|---|
| Electricity - 9 March 2026 | 11.1p | 23.5p | £2.28 |
| Electricity - 13 May 2026 | 9.8p | 27.3p | £1.34 |
| Gas - 9 March 2026 | 5.2p | 6.1p | 99p |
| Gas - 13 May 2026 | 3.9p | 6.8p | £1.71 |
One key point many operators are still unaware of is that standing charges and network costs are becoming a much bigger part of overall bills. Even if wholesale markets soften later in the year, many of these structural costs are unlikely to reduce.
For pubs coming up to renewal in the next few months, it is worth checking:
- whether standing charges are fully fixed
- whether additional non-commodity costs can still be passed through
- and whether the contract structure actually suits the business
Ongoing supplier challenges for pub operators
We are still seeing the same issues repeatedly across the hospitality sector:
- delays with Changes of Tenancy (COTs)
- suppliers requesting excessive documentation
- billing disputes
- and increased pressure around debt and disconnections
For incoming tenants, remaining on deemed or out-of-contract rates during delays can mean paying almost double a competitive contract rate during the crucial early weeks of trading.
These situations can very quickly impact cashflow, particularly for new operators already facing rising wage, food, and operating costs.
Energy planning for pubs – final thoughts
The energy market remains difficult to predict, but one thing is clear – contract structure, supplier support, and getting the tenancy setup right are now just as important as headline unit rates.
For pub operators taking on a new site, renewing contracts, or struggling with supplier issues, getting advice early can make a significant difference.
- Nationwide Energy Consultants supports pub and hospitality businesses with energy procurement, supplier disputes, tenancy changeovers, billing issues and energy consumption reviews.
