Energy Procurement in 2026: Risk, Timing & Opportunity

As we move into 2026, the role of energy procurement for commercial and industrial businesses is evolving rapidly. What was once a routine renewal exercise is now a strategic lever that drives cost control, risk management, and sustainability advantage.

At Inteb, we believe that getting timing, risk appetite, and procurement structure right is the difference between simply buying energy; and buying it well.

In this article, we explore how non-commodity costs are changing, why timing matters more than ever, how risk tolerance shapes your strategy, and where the real opportunity lies beyond chasing the lowest unit rate.

Understanding market data and renewable trends is key to shaping a resilient Energy Procurement Strategy 2026.

Non-Commodity Costs Are Shifting: 2025/26 and Beyond

Non-commodity charges now make up over half of a typical electricity bill, and their share is increasing year on year. As we move into 2025/26, two major cost drivers are reshaping business energy budgets:

1. Nuclear Regulated Asset Base (nRAB) Levy

The Nuclear Regulated Asset Base (RAB) model is a new government-backed financing mechanism supporting projects like Sizewell C. Unlike the Contracts for Difference (CfD) scheme; which applies once a generator is operational; the RAB model allows developers to recover costs during construction, reducing borrowing risk and long-term financing costs.

From 1 November 2025, a new consumption-based levy will appear on all electricity bills to help fund the construction and operation of Sizewell C:

• Starting rate: ~ £3.455/MWh (0.3455 p/kWh)
• Updated quarterly, passed through by all suppliers
• Applies for both construction and operational periods
• Two elements:

• • Nuclear RAB Supplier Obligation Levy
  • Nuclear RAB Operational Levy

While small at first glance, this levy adds a permanent cost for all but Energy-Intensive Industries (EIIs) with valid exemption certificates. Over time, it will compound for large energy users; particularly across multi-site portfolios.

Even if wholesale prices fall, fixed non-commodity charges like this will keep total bills elevated, underlining the need for proactive procurement and energy-reduction strategies.

2. Transmission & Distribution Charges (TNUoS & DUoS)

Electricity network charges fund the high-voltage transmission grid (TNUoS) and local distribution systems (DUoS), covering:

• Grid infrastructure & resilience
• Network maintenance and reinforcement
• System balancing and low-carbon integration

The National Energy System Operator (NESO) forecasts a sharp increase from 1 April 2026, with an additional £1.01 billion to be recovered from customers; roughly 40% higher than early 2025 projections.

Suppliers have already adjusted standing and capacity charges accordingly, meaning organisations comparing quotes before and after these re-forecasts will see noticeable uplifts.

What This Means for Businesses

These regulatory, network, and environmental costs are unavoidable, but how you buy and manage energy can significantly influence your exposure.

What Counts as Non-Commodity Costs?

Accurate market analysis and timing are crucial for developing an effective Energy Procurement Strategy 2026.

Timing: More Than Just Market Watching

In volatile markets, timing is everything. Get it right and the rewards can be significant; get it wrong and the impact can last long after the contract is signed.

Yet many organisations still treat procurement as a once-a-year exercise. In 2026, that approach is no longer viable.

Good timing looks like:

• Continuous monitoring of market data, forward curves, and supplier premiums.
• Buying strategically across multiple windows, not just renewal season.
• Aligning purchasing with operational cycles and budget planning.
• Acting on intelligence; not waiting for renewal dates.

During the 2022–23 energy crisis, businesses that procured months earlier secured rates up to 20–30% lower than those who waited until Q4; proof that timing is no longer optional.

Risk: Understanding Your Appetite

As non-commodity charges increase, procurement is becoming risk management, not just price negotiation.

Every organisation has a different tolerance for risk. The goal is to align contract structure with business priorities, cash flow, and sustainability goals.

Fixed = Certainty but Premiums.

Flexible = Transparency but Governance.

Hybrid = Balance and Adaptability.

Rising RAB and TNUoS costs make this alignment critical: each model absorbs non-commodity volatility differently.

Forward-thinking decisions within an Energy Procurement Strategy 2026 help businesses stand out and build resilience beyond price.

Opportunity: Looking Beyond Price

The most forward-thinking businesses no longer treat energy as a commodity — they treat it as a strategic asset.

1 – Integrate Procurement with Carbon & ESG Goals

• Opt for REGO-backed renewable supply or corporate PPAs.
• Use flexible models to align purchasing with renewable output and carbon reduction milestones.
• Incorporate on-site generation and demand-response to manage peak-time costs.

2 – Turn Energy from Cost Centre to Competitive Advantage

• Predictable budgets free up operational focus.
• Active procurement and data insight inform strategic decisions on production and expansion.
• Hybrid and flexible models enable demand shifting and cost optimisation.

3 – Leverage Data, Insight & Innovation

• Real-time analytics and forecasting tools provide actionable intelligence.
• Combining consumption data with market insight helps capture value at the right time.
• Even modest structural changes can cut total costs by 10–20%.

The Strategic Shift for 2026

Procurement in 2026 will be defined less by “What price can I get today?” and more by “What strategy best aligns with my risk, operations, and carbon objectives?”

The shift includes:

• Clarity over risk appetite and sustainability ambition.
• Data-driven decisions instead of assumption-based buying.
• Continuous review, not once-a-year renewals.
• Integration across finance, operations, and sustainability.
• Adaptability as markets, sites, and regulations evolve.

What This Means for Large Energy Users

For high-consumption businesses; manufacturing, logistics, property, or data centres; the stakes are even higher:

• Energy spend often forms a significant share of operating costs.
• Poor timing or structure can cause major budget variance.
• Structured procurement can deliver 10–20% savings compared to unmanaged approaches.
• On a £10 million energy budget, even a 5% gain equals £500,000 saved — or lost if timing is wrong.

Bringing It Together: Timing + Risk + Opportunity

A smart procurement strategy balances all three:

• Timing – act when markets and budgets align.
• Risk – choose structures that fit your exposure tolerance.
• Opportunity – use procurement as a platform for ESG, efficiency, and innovation.

In practical terms:

• Start strategy planning early.
• Involve Finance, Procurement, Operations, and Sustainability.
• Use forward-curve and scenario modelling.
• Align procurement with Net Zero goals.
• Monitor, review, and adapt as conditions evolve.

Have questions about your Energy Procurement Strategy 2026? Ask our team how to plan, optimise, and future-proof your energy purchasing decisions.

How Inteb Can Help

At Inteb, we help procurement teams and finance directors design strategies that balance timing, risk, and opportunity.

We:

• Profile usage and risk across portfolios.
• Model market scenarios and buying windows.
• Align contract structures to your tolerance and budget.
• Integrate carbon and ESG goals (REGO, PPA, on-site generation).
• Build governance frameworks for proactive procurement.
• Track regulatory and market change to keep your strategy fit for purpose.

Because in 2026, the best procurement isn’t just about what you pay; it’s about when, how, and why you buy.

Summary

Energy procurement is no longer about chasing the cheapest rate. In an era of volatility, regulation, and sustainability pressure, it’s a strategic decision that can deliver measurable advantage.

Whether your strategy is Fixed, Flexible, or Hybrid, success in 2026 will come from alignment; between your contracts, operations, and long-term goals.

Buy smart. Plan early. Reduce risk. Achieve more.