Business energy market update
October 2026
The energy market continues to evolve, with new government initiatives, infrastructure investments and UK wholesale energy market shifts continuing to shape the future of British businesses.
This month, we've rounded up some of the key developments from across the business energy sector and explained what they could mean for your organisation. From plans to speed up grid connections to new funding for community energy projects, here's what you need to know in October 2026.
Wholesale energy prices remain volatile in the UK
Wholesale energy prices continued to be volatile throughout September 2026. Wholesale energy prices are the cost of gas and power itself, before other network charges and system costs are added. During the month, prices rose sharply before easing back towards the end of September, although they remain higher than they were earlier in the summer.12
Several factors contributed to the movement in prices, including tighter energy supplies across Europe, lower-than-average gas storage levels, reduced availability from some power stations, and periods when renewable energy generation was lower than expected. While prices have fallen from their September peak, energy markets remain unpredictable and could continue to change in the months ahead.
The graphs below show how wholesale energy prices changed between August and September 2026.
How UK gas prices moved in August and September 20261
How UK power prices moved in August and September 20262
Why wholesale price changes matter to businesses
- Changes in wholesale energy prices can influence the cost of future business energy contracts.
- Energy prices are now higher than they were earlier in the summer, making it important for businesses to keep an eye on future developments.
- Regularly reviewing your energy strategy and appetite for certainty can help you make informed decisions as market conditions change.
Great British Grid aims to speed up business connections
The Government has announced Great British Grid3, a new initiative that aims to work alongside existing network operators to accelerate electricity network upgrades. Its goal is to help businesses secure the power they need sooner.
Under the plans, businesses who are waiting for network upgrades may be able to develop parts of the grid connection themselves, and Great British Grid could provide support or funding to help them do this. This could reduce reliance on network operators, and potentially help businesses secure power quicker.
Many energy-intensive organisations currently face long delays to get the electricity capacity they need – sometimes up to a 15-year wait.4 This can be a barrier to growth, expansion and decarbonisation.
Previous reforms have already begun to reduce delays, but ageing infrastructure, congested substations and long queues remain a problem - which Great British Grid aims to address.
Why faster grid connections matter to businesses
- Great British Grid aims to help businesses get the electricity capacity they need more quickly when opening, expanding or upgrading a site.
- Faster connections could allow businesses to start projects such as EV charging, heat pumps, battery storage and on-site renewable energy sooner.
- Improving the electricity network could make it easier for businesses to grow, switch to cleaner technologies and plan future investment.
£30 million “People’s Power” fund launches for community energy projects
The Government has launched a new £30 million fund to support community-owned renewable energy projects across Britain.5
“People’s Power” will give local authorities and community energy projects more funding to progress new sustainable energy projects, like putting solar panels on the local libraries or other community buildings.
The government aims to support around 1,000 initiatives that help local communities generate their own clean energy. It expects these projects will help to reduce energy bills, grow investment in local communities, and support Britain’s move towards net zero.
Why community energy projects matter to businesses
- Generating more renewable energy locally can help to reduce Britain’s reliance on fossil fuels, improving long-term energy security.
- Businesses may find new opportunities to support or take part in sustainability initiatives in their local community.
- The funding highlights the growing role renewable energy is expected to play in Britain's future energy mix.
Don't miss: British Industrial Competitiveness Scheme
In our August 2026 update, we shared Government plans to launch the British Industrial Competitiveness Scheme (also known as BICS). This is a new scheme aimed to cut energy bills for over 10,000 eligible manufacturers. Applications for this scheme are now open and close on 30 November 2026.
Ready to review your business energy options?
Understanding what's happening in the energy market can help you make more informed decisions for your business. If you're thinking about changing business energy supplier, we're here to support you every step of the way.
Frequently asked questions about this month’s energy news
What are wholesale energy prices?
Wholesale energy prices are the prices paid when buying gas and electricity from the energy market. Changes in wholesale prices can influence the cost of future energy contracts.
Why did wholesale energy prices change during September?
Prices were influenced by a combination of tighter energy supplies, lower gas storage levels and changes in electricity generation across Europe. These factors affected the balance between energy supply and demand, causing prices to rise. Prices began to ease towards the end of September, but remained higher than seen earlier in the summer.
What is Great British Grid?
Great British Grid is a new government initiative designed to help accelerate electricity network upgrades and improve access to grid connections. The aim is to reduce delays that can slow down business expansion, electrification and renewable energy projects.
Why does it take so long to get a grid connection today?
Britain’s electricity network wasn't originally designed for the rapid growth in electricity demand we're seeing today. More businesses are installing EV chargers, heat pumps, battery storage and renewable energy systems, all of which require access to grid capacity. At the same time, electricity infrastructure such as substations and cables needs to be updated before additional capacity can be made available. This can mean some projects face significant delays before they can secure a connection.
The Government hopes initiatives such as Great British Grid, alongside wider grid connection reforms, will help accelerate network upgrades and ensure businesses can access the power they need more quickly.
Why do businesses need new or upgraded grid connections?
As more organisations switch to electric vehicles, heat pumps, battery storage and renewable electricity generation, their demand for electricity increases. Access to sufficient grid capacity is becoming an important factor for businesses looking to grow or decarbonise their operations.
What is the People's Power fund?
The People's Power fund is a £30 million government scheme that supports community-owned renewable energy projects across Britain. Funding will help local authorities and community energy groups develop projects such as solar, wind and other renewable energy initiatives.
Can businesses apply for the People's Power fund?
The funding is primarily aimed at local authorities and community energy groups. However, businesses may benefit indirectly through opportunities to support local projects, participate in community initiatives or access the wider benefits of increased local renewable energy generation.
How could community energy projects benefit local businesses?
Community energy projects can help increase local investment in renewable energy, support sustainability initiatives and contribute to a more resilient energy system. They can also create opportunities for collaboration between businesses, local authorities and community groups.
In this article
- Wholesale energy prices remain volatile in the UK
- Great British Grid aims to speed up business connections
- £30 million “People’s Power” fund launches for community energy projects
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The views, opinions and positions expressed within the British Gas business Blog are those of the author alone and do not represent those of British Gas. The accuracy, completeness and validity of any statements made within this blog are not guaranteed. British Gas accepts no liability for any errors, omissions or representations. The copyright in the content within the British Gas business Blog belongs to the authors of such content and any liability with regards to infringement of intellectual property rights remains with them. See the Fuel mix used to generate our electricity. Read about making a complaint about your business energy.
Additional information
ICE UK Baseload Gas Futures, 30 September 2026
ICE UK Baseload Power Futures, 30 September 2026
Great British Grid to speed up connections and cut bills, GOV.UK, 29 September 2026
Government to tackle speculative demand grid connection requests, GOV.UK, 11 March 2026
‘People’s Power’ projects to give more control over local energy, GOV.UK, 17 September 2026
