Over the past few years, energy prices have been defined by volatility. Rapid swings in wholesale markets made budgeting difficult and left many businesses reacting rather than planning…

Today, the picture looks different. Wholesale energy markets have stabilised compared to recent peaks, creating a valuable and potentially short-lived planning window for food and drink businesses across Scotland.

For a sector where energy is a fundamental input, this stability offers an opportunity to step back and take a more strategic view.

Why stability matters

Periods of calmer market conditions allow businesses to:

• Review existing contracts without immediate pressure
• Understand future renewal timelines
• Assess exposure to market risk
• Plan procurement decisions with greater certainty

While stability does not guarantee low prices indefinitely, it does allow decisions to be made thoughtfully rather than urgently.

The food & drink energy challenge

Food and drink businesses face unique energy pressures:

• High and constant demand from refrigeration and cold storage
• Seasonal production peaks
• Multiple meters across production, warehousing, and distribution
• Tight margins sensitive to cost increases

These factors mean that energy decisions often have a disproportionate impact on operating costs.

Looking ahead to future renewals

Many businesses assume energy decisions should wait until contracts are close to expiry. In reality, reviewing arrangements 12+ months ahead of renewal can uncover opportunities to:

• Correct historic billing or meter issues
• Improve data visibility and forecasting
• Align contract structures with operational needs
• Reduce exposure to sudden market movements

Early planning also allows businesses to understand their options, rather than being forced into decisions by timing alone.

Using calm periods wisely

Energy markets are influenced by global supply, infrastructure investment, weather patterns and geopolitical events. While current conditions are more stable, change can happen quickly.

Using quieter periods to review strategy, rather than waiting for volatility to return, can help food and drink businesses build resilience into their cost base.

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A note for Scotland Food & Drink members

Scotland Food & Drink members can access a free, no-obligation energy audit to help review current arrangements, identify potential risks, and plan ahead with confidence.