top of page
Keyboard and Mouse

How Geopolitical Unrest Impacts the UK Energy Market

Updated: Oct 11, 2023

image of a war tank to how the current geopolitical tensions and how it could impact the UK energy market

Global geopolitical events, such as the recent war in Israel, can have a profound impact on energy prices, even if they occur thousands of miles away. Here, we delve into how these events are directly affecting the UK energy market and why it's crucial for your business to act now.

The Israel Factor: More Than Just a Middle East Issue

The surprise attack on Israel has led to a sharp increase in oil and natural-gas prices. Brent crude futures rose by 4%, hovering around $88 a barrel. This conflict risks further destabilising the petroleum-rich Middle East, causing a ripple effect that directly influences UK energy prices. In just a few days, gas prices jumped from 67.50 p/th on 05/10/2023 to 113.00 p/th on 11/10/2023, underscoring the market's volatility.

The Ukrainian Crisis: A Lesson in Energy Transition

The ongoing war in Ukraine has accelerated the shift away from highly polluting fuels towards more sustainable options like renewables and nuclear energy. This transition is vital for reducing dependency on a few major producers and insulating countries from the economic turmoil that geopolitical events can trigger.

The UK Perspective: A Market in Flux

While the UK currently has high energy storage levels, the Israel conflict and other geopolitical events have led to less competitive rates than we'd typically expect in a conflict-free scenario. It's a stark reminder of how even distant geopolitical changes can impact our energy costs here in the UK.

Why Proactive Planning is Imperative

This volatile situation highlights the need for informed, strategic decision-making regarding your energy contracts. With global events causing sudden jolts in the energy markets, staying updated is crucial for businesses. Check out our Daily Market Report and Weekly Market Reports for the latest insights.

Oil, Gas, and Power Prices: The Correlation

A spike in oil and gas prices typically exerts upward pressure on electricity rates. This ripple effect can significantly impact businesses, especially those with variable energy contracts.

Seasonal Demand and External Factors

As we head into the colder months, energy demand naturally rises. However, external factors like the Israel conflict can exacerbate this, leading to even higher prices.

Why This Matters for Your Upcoming Renewals

If your energy contract is up for renewal in the next six months, the current geopolitical landscape should be a key consideration. While it might be tempting to adopt a "wait and see" approach, the market's volatility makes it imperative to lock in your energy rates sooner rather than later.

Further Reading: A Week of Surprises in Energy Markets

For a deeper dive into the recent shocks and surprises that are shaking up the energy markets, don't miss our latest blog post: "What's Shaking Up the Energy Markets? A Week of Surprises". It provides a comprehensive look at the factors contributing to market volatility, offering valuable insights for your business energy strategy.

In light of these global events, waiting might not be the wisest option. Utilise our market insights to strategise your next steps effectively. Speak with our dedicated account managers to tailor a contract that best suits your business needs in this fluctuating market.

57 views0 comments


Keep Up To Date With Market Updates


Securing your next energy contract at the optimum moment is essential for fully realising your savings opportunities. Provide your details below to gain access to weekly market updates, giving you the advantage to make informed purchasing decisions at the right time.


Bid farewell to aggressive sales approaches from other brokers and take charge with confidence!

You're Subscribed! Look out for your first report soon!

Have More Questions?

  • Is it possible to change multiple business utilities at the same time?
    Our switching service allows you to switch multiple utilities simultaneously. We have successfully assisted multiple businesses in the UK by helping them save on various services such as energy and water with savings within 2023 already over the £2 Million mark.
  • How much can I save on my business utility bills?
    The amount you can save on your business utility bills will depend on various factors such as your current usage, the rates offered by different providers, and the specific deals available in your location. However, our switching service is designed to help you find the best deals and save as much as possible. By comparing multiple suppliers and negotiating competitive rates, we aim to maximise your potential savings. Get in touch with us to discuss your specific needs and get personalised information on potential cost savings for your business utility bills.
  • How does switching business utilities work?
    Switching business utilities involves a straightforward process. Here's a general overview of how it works: Evaluation: Start by assessing your current utility bills and usage patterns. This will give you an idea of your current costs and help identify areas where savings can be made. Comparison: Use a switching service like ours to compare different utility providers in your area. We provide you with quotes from multiple suppliers, allowing you to compare prices, contract terms, and services offered. Selection: Based on the comparison results, choose the utility provider that best meets your needs and budget. Consider factors such as price, customer reviews, contract terms, and any additional services or benefits offered. Contract Negotiation: Once you've chosen a new provider, our team can help negotiate the contract terms and rates on your behalf. Switching Process: The switching service will coordinate the transition with your current supplier and the new provider. This may involve submitting termination notices, arranging meter readings, and scheduling the activation of new services. Enjoy the Savings: After the switch, you'll start receiving services from your new provider, typically at the agreed-upon rates. You will notice savings on your utility bills, providing you with cost advantages for your business. Remember, the exact process may vary depending on the type of utility you are switching, but our switching service aims to simplify the process and assist you at every step.
  • Who are the cheapest business utility providers?
    As market conditions and prices fluctuate regularly, it's challenging to provide an up-to-date and definitive list of the cheapest business utility providers. The prices we provide you are valid and available on the day of the quote and will provide most current and competitive deals available. Our switching service helps you compare prices and offers from multiple suppliers, ensuring you have the most accurate and relevant information to make an informed decision about your business utility provider.
  • What is energy procurement?
    Energy procurement is the process of sourcing, negotiating, and securing energy contracts to meet the specific needs of a business. It involves analysing energy consumption patterns, understanding market trends, and negotiating with suppliers to obtain the best possible rates and contract terms.
  • Why is energy procurement important for my business?
    Energy procurement ensures that your business secures energy contracts that are both cost-effective and aligned with your operational needs. Proper energy procurement can lead to significant cost savings, budget predictability, and reduced risks associated with volatile energy markets.
  • How does The Smart Energy Company help with energy procurement?
    We specialise in analysing your energy consumption, understanding your specific needs, and leveraging our relationships with over 20 suppliers to negotiate the best possible contracts on your behalf. Our team ensures you get optimal rates, flexible terms, and contracts that align with your business goals.
  • How do you ensure I get the best energy rates?
    Our team continuously monitors the energy market, staying updated with trends, price fluctuations, and supplier offerings. Coupled with our in-depth analysis of your energy needs and consumption patterns, we negotiate with suppliers to secure rates that are both competitive and suited to your business.
  • Are there any hidden fees associated with your energy procurement services?
    Transparency is a core value at The Smart Energy Company. We provide a clear breakdown of any commission we earn as a company when you come to agree any new energy contract. This is typically included as an uplift in your unit rate and paid to us by the supplier you chose to go to. Our primary goal is to secure the best energy deals for you, with no hidden costs.
Business Meeting

Unlock the Potential of
Your Business Energy

At The Smart Energy Company, we're committed to offering tailored solutions that fit your energy needs perfectly. By staying ahead of market trends, we ensure you're always equipped with the most efficient and sustainable energy options. We take pride in our client-driven approach, where your feedback shapes our continuous improvement.


Why not schedule a complimentary consultation with one of our energy experts today? Let's find the perfect energy solution tailored to your business.

See What Our Clients Say About Us


Very helpful, quick expert advice. We have been using Smart Energy for a while.


Ian Hughes

Operation Manager

Group of Bars

bottom of page