Understanding the Energy Market Landscape in Q3 2025

The UK business energy market continues to shift, and while prices may seem stable at first glance, a lot is happening beneath the surface.

According to the latest Energy Market Update from Inspired PLC, Q3 2025 revealed a delicate balance between short-term price stability and long-term cost pressure. For business owners, these trends directly affect when and how to renew energy contracts.

We’ve broken down the data and added our own insights to help businesses make sense of what’s ahead.

1. Wholesale Prices Are Steady, For Now

Gas and electricity prices remained relatively stable through Q3, supported by mild summer demand and healthy European gas storage levels. However, the market remains sensitive.

With geopolitical tension and unpredictable liquefied natural gas (LNG) supply chains, wholesale rates can swing quickly. Businesses shouldn’t mistake current calm for long-term certainty. Volatility can return with little notice, especially as we move into the winter period.

PPS Insight: Locking in a contract early, while rates are still flat, can protect your business from sharp seasonal increases later in the year.

2. Rising Non-Commodity Costs Are Driving Bills Higher

Even as wholesale prices settle, non-commodity costs (such as network charges, levies, and policy costs) continue to rise. These make up a growing portion of total energy bills, often 50% or more, and are set to increase further through 2026.

These costs are beyond your supplier’s control, but understanding them is crucial. Too often, businesses focus on the unit rate alone, not realising how much of their spend comes from these hidden extras.

PPS Insight: Our team dissects every part of your energy bill, from commodity to non-commodity costs, to ensure you’re not overpaying in areas you can control.

3. Energy-Intensive Sectors Should Act Early

Manufacturing, food production, and hospitality are among the sectors most affected by energy price fluctuations. Because these industries consume large amounts of power, even small market movements can have a major impact on annual budgets.

Businesses in these sectors should consider renewing contracts 6–12 months in advance to secure competitive rates before winter volatility and cost pass-throughs hit.

PPS Insight: We’re already helping clients across these industries forecast future costs and identify the optimal time to renew, ensuring long-term budget certainty.

4. Strategic Renewal Timing is More Important Than Ever

The biggest opportunity right now isn’t just about finding a cheaper rate; it’s about timing your renewal strategically. Energy markets move fast, and a well-timed decision can save thousands over a contract term.

With suppliers becoming more selective and regulation tightening, a broker who understands the full cost structure (not just the price on the front page) can make all the difference.

Partnering With PPS for Business

We simplify complex energy decisions, helping businesses:

• Understand every cost on their bill

• Identify the best time to renew contracts

• Manage risk during periods of market uncertainty

• Stay ahead of regulatory and non-commodity changes

  
  

Whether your renewal is coming up soon or not for another year, it’s never too early to plan.

👉 Get in touch with PPS for Business today to discuss your energy strategy and secure greater cost stability for the year ahead.