Political Uncertainty Adds Pressure to UK Energy Planning
Political Uncertainty
Added Pressure to UK Energy Planning
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ENERGY CONSULTANCY OF THE YEAR 2025
Publish Date:
July 1, 2026
Prime Minister Resigns
Keir Starmer's resignation adds new domestic uncertainty to an already volatile energy market.
For UK businesses, the main impacts in Q3-2026 are:
- Higher Import Costs:
The announcement caused the pound to weaken. Because global energy (like gas and oil) is traded in US dollars, a weaker pound automatically makes importing energy into the UK more expensive, pushing wholesale prices up.
- Policy Standstill:
Should a coronation occur, we will have a new PM in July and a cabinet reshuffle. Ed Milliband moving from Energy might see some positive market trading sentiment and a possible move away from the hard-line net zero approach. However, should a leadership race happen which would run until September, the government will be in a "caretaker" state. No new energy policies, support packages, or changes to network charges will happen during the summer.
Energy Market Report Q3 2026
How Can Advantage Help?
Our sustainability department continue offer an ever-increasing range of products and technology aimed at reducing energy consumption and associated costs as well as driving down carbon emissions.
We will of course continue to keep you updated around these initiatives, but please do reach out to your designated point of contact should you wish to explore your options in this regard.
In terms of procurement, we will of course continue to monitor markets with a view to helping customers navigate the unprecedented circumstances and ascertain when constitutes the best time to seek a contract extension.
Our popular flexible procurement options continue to be an option for an increasing number of clients on either a standalone basis or as part of a grouped basket. This often facilitates access today/month ahead trading markets which have proved to be particularly beneficial to many clients over the winter period.
BULLISH IN Q3
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IRAN WAR AND GEOPOLITICAL FALLOUT
COMPETITION FOR LNG
LOW EUROPEAN STORAGE
POLITICAL & ECONOMIC INSTABILITY AND UNCERTAINTY
RUSSIA/UKRAINE WAR
RANGEBOUND IN Q3
VOLITILITY & UNCERTAINTY
CARBON
STARMER RESIGNATION
BEARISH IN Q3
US-IRAN DEAL
RE-OPENING STRAIT OF HORMUZ
MILD SUMMER START
WHOLESALE FUTURES PRICES - ‘28 & BEYOND
TRUMP’S TARIFFS
GOVERNMENT RESHUFFLE
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