30-Second Overview
Wholesale electricity and gas prices are over 50% lower than their 2022 peak. However, they are still elevated by historical standards. Businesses locked into expensive energy contracts or coming out of contract in the near future should review options to save costs.
Energy markets have become more volatile again in 2026, with geopolitical tensions and tighter European gas supplies putting upward pressure on prices. Business electricity and gas prices are therefore unlikely to fall meaningfully during the remainder of 2026.
This guide explains the main factors affecting business electricity and gas prices, the outlook for the remainder of 2026, and when businesses should consider fixing their energy contracts.
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What Factors Affect Electricity Prices?
1. Global Demand for Natural Gas
Ireland’s electricity prices are closely linked to natural gas prices because gas-fired power stations play a major role in electricity generation. Economic growth can increase global demand for natural gas, pushing up gas prices and, in turn, wholesale electricity prices.
2. Geopolitical Conflicts
Geopolitical events can disrupt global energy supplies and cause sharp movements in electricity and gas prices. Europe relies heavily on Norwegian gas pipelines and LNG imports from the U.S. and UAE. This makes European energy markets sensitive to disruptions in international supply routes.
3. Weather Conditions
Weather affects both electricity demand and supply. Cold weather increases heating demand, while periods of low wind can reduce renewable electricity generation and increase reliance on gas-fired power stations. Conversely, strong wind generation can help lower wholesale electricity prices.
4. Ireland’s Energy Mix
Ireland generates electricity from a combination of natural gas, wind, solar, hydro and other sources. Natural gas accounts for 50% of electricity generation and continues to play a vital role in balancing the electricity system when renewable generation is low. This is one of the reasons Irish electricity prices remain closely linked to gas markets.
5. Infrastructure & Regulatory Costs
Electricity bills include regulated network and system charges in addition to the cost of the electricity itself. Regulated network and system charges are currently almost 15 cents per kWh and represent a significant proportion of the final electricity price paid by businesses. These charges fund the transmission and distribution networks and the operation of the electricity system. They are reviewed annually, with revised charges generally taking effect from 1 October.
6. Government Policy
Government energy and climate policy also affect electricity costs. Taxes, carbon charges, renewable energy supports and investment in electricity infrastructure all influence the final price paid by businesses.
Why Are Electricity Prices Linked to Natural Gas?
Ireland’s wholesale electricity prices are closely linked to natural gas prices because gas-fired power stations frequently set the wholesale electricity price.
Even when a large proportion of Ireland’s electricity comes from wind and other renewables, gas-fired power stations are still needed to meet the remaining demand and balance the electricity grid. Under Ireland’s wholesale electricity market, the most expensive generator needed to meet demand determines the market price. As a result, higher natural gas prices lead to higher wholesale electricity prices.
Ireland also imports most of its natural gas and has no LNG terminals, leaving electricity prices exposed to movements in European and global gas markets.
Will Business Electricity Prices Fall in 2026?
Business electricity prices have fallen significantly from the highs reached during the 2022 energy crisis. However, the downward trend has not continued consistently through 2026. The conflict in the Middle East and closure of the Strait of Hormuz have put upward pressure on energy commodity prices. With the conflict continuing as we approach winter, we are unlikely to see a significant easing in the short term and expect prices to move broadly sideways for the remainder of 2026.
Wholesale electricity prices remain volatile, largely because of movements in global natural gas markets and geopolitical tensions. As a result, businesses renewing electricity contracts in 2026 should not assume that prices will continue to fall.
Commercial electricity prices also react relatively quickly to changes in wholesale markets. Suppliers update commercial pricing every week to reflect wholesale markets and the price they must pay to purchase energy. This means business electricity and gas rates are constantly changing, and the rates available today may be different from those available several weeks or months ago.
Understanding Business Electricity Contract Types
- Wholesale Electricity Trackers: These contracts track the prices that power stations sell electricity at. Suppliers must then add network charges and their own profit margin. Monthly costs therefore rise and fall with the wholesale market.
- Fixed-Price Electricity Contracts: Lock in a unit rate and standing charge for a set contract period, typically 12 to 24 months, providing greater budget certainty.
Commercial vs Domestic Pricing
Commercial electricity contracts are priced differently from domestic tariffs and generally respond more quickly to movements in wholesale markets. The price available to a business will depend on factors including its electricity usage, meter type, contract structure and the wholesale market when the contract is priced.
Will Business Gas Prices Fall in 2026?
Business gas prices have also fallen significantly from the highs reached during the 2022 energy crisis. However, European gas markets have tightened again during 2026 as geopolitical tensions, supply disruption and lower gas storage levels have put upward pressure on prices.
The outlook for the remainder of 2026 remains uncertain. Gas prices could fall if supply concerns ease, but businesses approaching contract renewal should not assume that prices will return to the lower levels seen in 2025.
When Should You Fix Business Electricity Prices?
If your electricity contract is ending soon, then it is time to review your options for your next contract. Auto-rolling onto out-of-contract rates will cost you nearly double and should be avoided. You should consider business electricity price plans that are currently available in the market.
The right contract will depend on current market conditions, your attitude to price risk and how much budget certainty your business requires. The main options are:
- Fixed-Price Plans (12–24 months): Lock in electricity rates for an agreed period, providing greater budget certainty and protection against increases in wholesale prices.
- Wholesale Electricity Trackers: Track movements in the wholesale electricity market. Costs can fall when wholesale prices decline but will also increase when the market rises.
- Short-Term Contracts (6 months): Provide flexibility where a business does not want to fix prices for a longer period but also wants to avoid the volatility of a wholesale tracker.
💡Pro Tip: Avoid auto-rolling onto out-of-contract rates. Don't wait until your existing contract expires. Reviewing the market in advance gives you time to compare suppliers and contract options before your current rates end. Talk to our experts to see the latest rates across all suppliers.
Will Wholesale Electricity Prices Fall in the Remainder of 2026?
Wholesale electricity prices are unlikely to fall significantly during the remainder of 2026. Prices remain well below the peaks reached during the 2022 energy crisis, but have moved higher again during 2026 as geopolitical tensions and tighter European gas supplies have increased market volatility. The key factors to watch for the remainder of 2026 are:
- An easing of geopolitical tensions in the Middle East
- Resumption of normal oil and gas shipments through the Strait of Hormuz
- European natural gas storage levels during winter 2026
- Weather patterns, including cold snaps and periods of low wind generation
- Global energy demand driven by economic growth
The outlook remains uncertain. While electricity prices could fall if gas markets ease, businesses should not assume that wholesale prices will return to the lower levels seen in 2025.
How Utilityfair Can Help You Save on Energy Costs
Utilityfair is Ireland's largest and most reviewed commercial energy broker. We compare electricity and gas prices across all suppliers to help businesses secure the right contract at the best available market rate. Our energy experts have access to the latest pricing from all suppliers, allowing us to compare the market in minutes. The service is completely free. We can:
- Compare commercial electricity and gas rates across all suppliers
- Advise on fixed-price and wholesale tracker contracts
- Set up your new contract if you choose to switch, saving you time and hassle
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Frequently Asked Questions
Wholesale electricity prices are unlikely to fall significantly during the remainder of 2026. Key drivers to watch are:
(i) An easing of geopolitical tensions in the Middle East
(ii) Resumption of normal oil and gas shipments through the Strait of Hormuz
(iii) European natural gas storage levels during winter 2026
(iv) Weather patterns, including cold snaps and periods of low wind generation
(v) Global energy demand driven by economic growth
Approximately 50% of Ireland’s electricity is produced from gas-fired power stations. As a result, wholesale electricity prices are closely tied to natural gas prices.
Yes. If your current contract was fixed at expensive rates, switching early could yield significant cost savings. Talk to our energy experts, and we can advise you.
A wholesale tracker passes on the average rate that power stations sell to suppliers at. Supplier must also add regulatory charges of approximately 14.6 c/kWh and thier own profit margin.
They can be, but not always. Business electricity plans track wholesale markets more closely and react faster to price drops than domestic plans.
There is no exact time that is always better. However, the market is usually more cautious in winter months and reactions to unexpected events such as cold snaps, outages and supply disruptions become more amplified.
Key drivers include rising global gas demand, geopolitical conflicts, extreme weather, and infrastructure maintenance outages.
Around 15 cents per kWh comes from regulated charges for transmission, distribution, and market operations. This represents approximately 50% of your bill.
Businesses can choose fixed-price contracts (12–36 months), wholesale trackers, or short-term 6-month plans.
Utilityfair compares business electricity prices across all suppliers, advises on contract timing, and helps avoid costly variable rates. Speak to our energy experts today for a free energy price comparison. You can only win!
