Energy Strategy in August 2026: What Large Users Should Be Reviewing Now
Updated: Sep 10
For large energy users, August is not a quiet period in the energy calendar. It is a valuable point to review contract exposure, consumption data, future budgets and operational risk before winter demand increases and before several important policy and market changes move closer.
The energy market in 2026 remains shaped by a combination of wholesale volatility, network investment, flexibility reform, decarbonisation policy and the growing role of data-led energy management. Large organisations should not be waiting until renewal deadlines or budget pressure points to act. They should be using this period to assess where cost, carbon and operational exposure may be building across their estate.
1. Review wholesale exposure before winter
Wholesale energy markets remain sensitive to weather, gas supply, geopolitical disruption and generation availability.
Recent market activity has shown how quickly price pressure can return. Ofgem confirmed that domestic default tariff prices rose from July to September 2026, citing higher wholesale gas prices linked to conflict in the Middle East. While the domestic price cap does not apply to most commercial energy contracts, it is still a useful public signal of the wider pressure wholesale gas can place on the market.
Power markets have also been affected by summer conditions. Reuters reported that European heatwaves pushed summer power prices to levels usually associated with winter peaks, with higher cooling demand, reduced wind output, French nuclear restrictions and reduced gas plant efficiency all contributing to pressure on the system.
For large users, this reinforces the importance of reviewing:
Current contract end dates
Fixed versus flexible purchasing positions
Open volume exposure
Budget tolerance
Winter 2026/27 purchasing strategy
Internal approval timescales
Market trigger points
Risk management governance
A procurement strategy should not be built around a single market view. It should reflect the organisation’s risk appetite, budget requirements, operational needs and decision-making process.
2. Separate commodity and non-commodity cost risk
For many large users, the energy conversation still focuses heavily on wholesale price. However, non-commodity costs remain a major part of the total bill and should be reviewed carefully.
Ofgem’s RIIO-3 price control period began on 1 April 2026 and runs to 31 March 2031, setting the framework for electricity transmission, gas transmission and gas distribution network investment and allowed revenues. Network charges are recovered through customer bills, and Ofgem has previously stated that network charges make up around 20% of consumer energy bills.
Large users should therefore check how non-commodity costs are being handled within their contracts. This includes understanding whether charges are fixed, passed through, reconciled or subject to change.
Key areas to review include:
TNUoS
DUoS
BSUoS
Capacity Market
Renewables Obligation
Feed-in Tariffs
Contracts for Difference
Metering and data charges
Supplier risk premiums
Any reconciliation or pass-through wording
A lower unit rate is not always the same as a lower total cost. Large users need visibility across both commodity and non-commodity elements to understand the full commercial position.
3. Reforecast consumption and budgets using real site data
Energy budgets should be reviewed against actual consumption, not historic assumptions alone. Operational changes, new equipment, longer opening hours, electrification, EV charging, changes in occupancy, production output and onsite generation can all affect future demand. Weather is also becoming a more important factor. Heatwaves can increase electricity demand for cooling, while low wind or reduced generation availability can create additional pressure in the wider power market.
Large users should use August to compare budgeted consumption against actual consumption across each site, meter and supply. Any unexplained changes should be reviewed before winter planning and before 2027 budgets are finalised.
This is particularly important for organisations with:
Multi-site estates
High half-hourly electricity consumption
Seasonal operations
Manufacturing or production activity
Hospitality, leisure or healthcare portfolios
Warehousing and logistics sites
Sites with refrigeration, cooling or process loads
Planned electrification or EV charging projects
Good forecasting depends on good data. Without accurate site-level information, businesses may under-budget, over-contract or miss opportunities to reduce waste.
4. Prepare for Market-wide Half-Hourly Settlement
Market-wide Half-Hourly Settlement, known as MHHS, is one of the most significant electricity market reforms affecting how consumption data is used.
Elexon explains that MHHS will allow settlement calculations to be based on actual consumption for each half-hour of the electricity day, rather than estimates or monthly readings. It also notes that the new shorter settlement timetable milestone is scheduled for 2 July 2027.
For large users, the practical message is simple: electricity data quality is becoming more important, not less.
Organisations should review:
Metering arrangements
Half-hourly data availability
Estimated reads
Missing consumption data
Data collector and meter operator arrangements
Site and MPAN accuracy
Supplier data flows
Internal reporting processes
Whether energy data is being actively reviewed or simply stored
MHHS should not be seen only as an industry reform. It is part of a wider shift towards more accurate, time-based energy management. Businesses with poor data visibility may find it harder to manage cost, validate invoices, access flexibility opportunities and plan future procurement effectively.
5. Manufacturers should assess BICS eligibility now
Manufacturing businesses should be paying close attention to the British Industrial Competitiveness Scheme, known as BICS.
The Government confirmed in July 2026 that BICS will proceed through changes to the Renewables Obligation, Capacity Market and Feed-in Tariffs. Applications for the first year of the scheme will open on 1 October 2026 and close on 30 November 2026, with eligible businesses receiving support from April 2027 if they apply within that window.
The scheme is designed to support heavy industry, advanced manufacturing and manufacturing supply chains by reducing electricity policy costs for eligible businesses.
For manufacturers, August is the right time to begin assessing:
Eligible SIC codes
Eligible manufactured products
Site-level electricity use
Electricity used in qualifying processes
Companies House details
MPANs and meter data
Current RO, FiT and Capacity Market cost treatment
Whether any existing support schemes affect eligibility
Evidence needed for application
The application window is short. Waiting until October could leave internal teams without enough time to gather evidence, review electricity data and confirm site-level eligibility.
6. Review flexibility, solar and battery storage opportunities
The UK energy system is moving towards greater flexibility. The Government’s Clean Flexibility Roadmap, developed with Ofgem and NESO, sets out a vision for a cleaner and more flexible electricity system that maximises energy infrastructure and supports the integration of renewable power.
For large users, flexibility is becoming commercially relevant. This may include reviewing how demand can be shifted, how onsite generation can be used more effectively, whether battery storage is viable, and how future electricity use may interact with grid constraints and market signals.
Battery storage is also becoming more prominent in the UK’s energy system. Ofgem announced in June 2026 that 16 long-duration electricity storage projects had moved forward under its LDES process, with long-duration storage defined as systems able to store and release electricity for eight hours or more.
Solar also continues to grow. In July 2026, solar farms and rooftop panels provided a record 14.4% of Great Britain’s electricity, with 142,536 new solar installations recorded in the first half of 2026.
Large users should now be reviewing whether their sites are suitable for:
Commercial solar PV
Battery energy storage
EV charging infrastructure
Demand response
Load shifting
Peak demand reduction
Export or flexibility opportunities
Portfolio-wide energy optimisation
The strongest projects should be led by data, not by technology alone. A site may be suitable for solar but not battery storage. Another may have strong battery potential because of peak demand, operating hours or grid constraints. The commercial case depends on consumption profile, contract structure, site infrastructure and future operational plans.
7. Check whether billing and supplier queries are under control
Large energy users often carry avoidable cost through billing errors, estimated reads, delayed supplier corrections, incorrect meter details or unresolved account issues.
This becomes more important during periods of market and policy change. As non-commodity costs shift, contracts renew, data requirements increase and consumption patterns change, invoice validation and supplier query management become central to cost control.
Businesses should review:
Open supplier queries
Historic billing corrections
Estimated invoices
Meter read accuracy
Pass-through charge reconciliation
Incorrect site or meter details
Duplicate billing
VAT and CCL treatment
Capacity and network charge accuracy
Whether internal teams have ownership of query resolution
For large portfolios, small errors repeated across multiple meters or billing periods can become commercially significant.
8. Connect energy strategy to carbon and reporting requirements
Energy strategy and carbon reporting are now closely connected. Electricity procurement, renewable sourcing, onsite generation, consumption reduction, data accuracy and operational efficiency all affect the quality of carbon reporting inputs.
The Government’s Clean Power 2030 Action Plan emphasises the need to build the grid, accelerate clean generation, develop a flexible system and reduce reliance on volatile international fossil fuel markets. For large organisations, this means energy decisions should support both commercial resilience and decarbonisation planning.
Large users should ensure they can evidence:
Scope 2 electricity consumption
Renewable electricity claims
REGO-backed supply arrangements
Site-level kWh data
Solar generation and export
Carbon reduction linked to energy projects
Changes in demand from electrification
Energy efficiency or optimisation measures
Strong reporting starts with reliable data. Without accurate meter, consumption and contract information, businesses may struggle to evidence progress or make credible decisions about future investment.
What large users should review in August 2026
August should be used as a strategic checkpoint. Large users should review:
Area | What to check |
Procurement | Contract end dates, renewal strategy, fixed/flexible approach and approval timelines |
Market risk | Winter exposure, open volume, budget sensitivity and trading governance |
Non-commodity costs | TNUoS, DUoS, BSUoS, RO, FiT, Capacity Market and pass-through terms |
Data | Half-hourly data, estimated reads, missing data, meter accuracy and reporting quality |
Billing | Invoice validation, supplier queries, historic corrections and account accuracy |
BICS | Eligibility, application evidence and October–November 2026 deadline |
Solar | Roof-space potential, consumption alignment, export position and commercial case |
Battery storage | Peak demand, load profile, solar integration, resilience and funding options |
Flexibility | Demand shifting, operational flexibility, EV charging and future market participation |
Carbon | Scope 2 evidence, renewable claims, energy reduction and reporting inputs |
How Smarta Energy can help
Smarta Energy supports large and complex organisations with energy strategy, procurement, risk management, data visibility, invoice validation, supplier management and renewable energy planning.
Our approach is designed to help organisations understand not just what they pay for energy, but how energy is bought, used, monitored, reported and managed across the estate.
For large users reviewing their position in August 2026, we can support with:
Energy contract and renewal review
Procurement and risk strategy
Budget forecasting
Non-commodity cost analysis
Half-hourly data review
Utility Data Intelligence
Bureau and invoice validation
Supplier query management
BICS preparation for manufacturers
Solar and battery storage feasibility
Renewable electricity and carbon reporting support
Final thought
Energy strategy in August 2026 should be proactive, not reactive. Large users are facing a market shaped by wholesale volatility, network investment, policy change, data reform, decarbonisation and growing flexibility. The organisations that are best prepared will be those that understand their contracts, data, usage, risk and future requirements before decisions become urgent.
Now is the time to review the detail, strengthen internal visibility and make sure your energy strategy is ready for winter, 2027 policy changes and the next stage of the UK energy transition.
Review Your Energy Strategy
Whether your organisation is preparing for contract renewal, reviewing energy data, assessing BICS eligibility or exploring solar and battery storage, Smarta Energy can help you build a clearer, more strategic approach to energy management.
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