If your gas and/or electricity contracts are due to expire in 2026, it might feel like a long way off. In energy terms, it really isn’t. The decisions you make over the next 12 months could have a big impact on your costs, your cash flow, and even your competitiveness.

This article explains what the current market looks like, why planning ahead matters, and practical steps, hints, and tips to get “2026-ready”.

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1. The current energy market landscape (in plain English)

Since the extreme price spikes of 2022, wholesale gas and power prices have fallen significantly, but they haven’t gone back to pre-2021 levels. Europe is still adjusting to reduced Russian gas supply, relying more on LNG imports, storage levels, and interconnectors, which means prices are still sensitive to global events, weather, and infrastructure issues.

A few key realities for businesses:

• Prices are volatile, not stable – We see periods of relative calm followed by sharp movements driven by things like:
  • Geopolitical tensions
  • LNG supply disruptions
  • Cold snaps or heatwaves
  • Power station and interconnector outages
• Non-energy costs are rising – A growing share of your bill is made up of network, policy, and environmental charges, many of which are increasing over time as the system invests in low-carbon infrastructure and resilience.
• Net Zero and ESG are now mainstream – Many customers, landlords, and supply chains are pushing businesses to demonstrate how they’re managing energy usage and emissions. Even if your priority is just “keep bills down”, the policy direction of travel is clear: more scrutiny, not less.

In short: the era of “set and forget” energy buying is over. You don’t need to become a trader, but you do need to be more intentional.

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2. Why planning ahead for 2026 is so important

2.1 Avoiding the “last-minute panic” premium

Leaving renewals until the last minute often means:

• Fewer supplier options
• Less time to compare products
• Little or no opportunity to choose when you lock in price

Suppliers also know when you’re up against the clock. That usually doesn’t work in your favour.

2.2 Giving yourself options, not ultimatums

Starting early (12–24 months out for larger users, 6–12 months for smaller ones) lets you:

• Track the market and take advantage of dips
• Consider different contract structures (fixed, flexible, pass-through, hybrids)
• Align energy strategy with your wider plans (expansion, site changes, equipment upgrades)

The more time you have, the more you can shape your energy deal to fit your business, not the other way round.

2.3 Budget certainty and board confidence

Senior leaders and finance teams want:

• Predictable costs
• Fewer nasty surprises
• A clear story to tell lenders, investors, and stakeholders

An early, well-thought-out energy strategy makes budgeting for FY 2026/27 and beyond much easier, especially if you’re in a margin-sensitive sector like hospitality, manufacturing, food & drink, or logistics.

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3. Practical steps to get “2026-ready”

Step 1: Know your contract end dates (properly)

It sounds obvious, but you’d be surprised how often this is fuzzy.

• Create a simple spreadsheet of all sites, with:
  • Supplier
  • Contract end date
  • Meter numbers (MPAN/MPRN)
  • Current rates and standing charges
• Set internal reminders 12, 9, 6 and 3 months before each end date.

If you have multiple sites with different end dates, consider aligning them in future so you can go to market with more volume and less admin.

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Step 2: Understand your usage and patterns

Suppliers (and brokers) can help you more effectively if you know:

• Annual consumption for each meter
• Seasonal and daily patterns (e.g. 24/7 production vs office-hours only)
• Any planned changes:
  • New equipment or automation
  • Extended opening hours
  • New sites or closures
  • Electrifying processes (e.g. gas to electric, EV charging)

This information can influence:

• Whether you’re better with a fully fixed or more flexible structure
• How suppliers price you
• What kind of risk you’re taking on volume and take-or-pay clauses

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Step 3: Decide your risk appetite

Ask yourself (and your board):

• Would we rather fix a price and sleep at night, even if we might miss a future dip?
• Or are we willing to accept more volatility for a chance at a lower blended cost over time?

Your answer will guide:

• Fixed vs flexible vs phased purchasing
• Contract length (e.g. 12, 24, 36 months or more)
• Whether you lock in non-energy charges or leave some elements pass-through

There’s no one “right” answer – but not having this conversation is definitely the wrong one.

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Step 4: Consider efficiency and demand reduction in parallel

Your cheapest kWh is the one you never use.

Before you tie in for 2–3 years, look at:

• Quick wins
  • LED lighting upgrades
  • Controls and timers (heating, AC, refrigeration, compressed air)
  • Fixing air leaks and poor insulation
• Low-to-medium spend projects
  • Variable speed drives on motors
  • Smarter BMS (building management systems)
  • Better zoning and controls in large spaces
• Longer-term capex
  • Solar PV
  • Heat pumps
  • EV charging infrastructure

If you know you’ll cut consumption by, say, 10–20% in 2026, that can influence:

• Your contracted volumes
• The best contract type
• Payback periods for projects

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Step 5: Use the right expertise

Energy is complex and constantly changing. Working with a trusted energy partner or consultant can help you:

• Benchmark your current contract
• Track market movements and buy at sensible times
• Compare offers on a like-for-like basis (including non-energy charges and hidden fees)
• Negotiate contract terms, not just price (volume tolerance, change of tenancy clauses, green options, etc.)
• Build a longer-term energy and carbon reduction plan

If you already work with a partner, now is the time to start that 2026 conversation.

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4. Hints, tips, and common pitfalls to avoid

4.1 Don’t focus solely on unit price

A headline p/kWh number is only part of the story. Also check:

• Standing charges
• Non-energy cost treatment (fixed vs pass-through)
• Payment terms and late payment penalties
• Broker/consultancy fees – how are they charged and are they transparent?
• Volume tolerance and penalties

Two contracts with the same unit rate can cost very different amounts over their lifetime.

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4.2 Watch out for automatic renewals and deemed rates

If you roll off a contract without a new one in place, you may end up on:

• Deemed or out-of-contract rates – usually far higher than negotiated rates
• Auto-renewals – often not the best terms you could get in the current market

Tip: build a simple internal rule – we start looking at options at least six months before any contract end date.

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4.3 Align energy and ESG messaging

If you’re investing in green tariffs, on-site renewables, or efficiency projects:

• Make sure marketing, finance, and sustainability teams are all talking to each other.
• Use your energy strategy to support bids, tenders, and customer conversations.

A well-designed contract (for example, backed by REGO-certified renewable electricity) can support your brand as well as your bills.

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4.4 Think beyond just “the next renewal”

Rather than treating 2026 as a one-off event:

• Build a 3–5 year energy roadmap:
  • Contract strategy
  • Efficiency projects and capex
  • Net Zero or emission-reduction milestones
• Review annually and update based on market conditions and business plans.

This shifts energy from a reactive “grudge purchase” to a managed business cost and strategic lever.

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5. A simple 2026 readiness checklist

You’re in good shape for 2026 if you can say “yes” to most of these:

•  We know all our exact contract end dates for gas and power.
•  We have reminders set at least 6 months before each end date.
•  We understand our usage patterns and any upcoming changes.
•  We’ve agreed our risk appetite (fix vs flexible, contract length).
•  We’re actively exploring efficiency and demand-reduction opportunities.
•  We’re comparing offers on a like-for-like basis, not just headline unit rates.
•  We’re working with a trusted energy partner or have clear internal expertise.
•  We have a basic 3–5 year energy and carbon plan, not just a one-year view.

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Final thought

You can’t control the global gas market, the weather, or geopolitics. But you can control how prepared you are.

If your contracts are due in 2026, starting to plan now means:

• More choice
• Better timing
• Stronger budgets
• Fewer surprises

In other words: less time firefighting, more time running your business.