Energy Roundup: February 2026

Welcome to the first issue of our Energy Roundup for 2026. Each quarter, we’ll bring you the latest news, views and insights to help you navigate the ever-changing complexities of the energy industry.

Energy Overview

Gas and Power Update

Wholesale energy markets have had a turbulent start to the year, with February 2026 gas prices rising more than 40% from mid‑December lows. Cold weather across Europe, the US and Asia have tightened global gas supply, while lower‑than‑usual European storage levels have added additional pressure to both balance‑of‑winter and front‑summer contracts.

Higher demand has led to faster storage withdrawals, bringing European inventories down to around 44% as of 26 January. If this trend continues, stocks could reach record lows by the end of winter, increasing the system’s vulnerability to any late cold spell and creating a greater challenge to refill storage ahead of Summer 2026.

Looking ahead, colder weather risks remain across Europe, including the possibility of a sudden stratospheric warming (SSW) event, which can trigger very cold conditions in late February or early March.

Geopolitical uncertainty also remains a key driver of market risk. Any escalation in the Middle East could push prices higher, while meaningful progress toward a Russia–Ukraine peace agreement would be the strongest driver for prices to fall.

Longer‑dated contracts (S27+) have remained more stable despite the volatility in nearer‑term products. Expectations of increased LNG supply are exerting downward pressure, while carbon prices remain supported as discussions continue on linking the UK and EU emissions trading systems.

To stay up to date on the power market, sign up for the webinar.

Power Market Update Webinar
Join James Chaplin, Senior Manager of Curve Trading, at our next power market updates webinar, to navigate current developments in the UK power market and get an outlook on future prices.
Wednesday 29 April at 2pm
Register here

Non-Energy Costs (NEC) Overview

64% TNUoS Increase Confirmed from April 2026

NESO has confirmed that Transmission Network Use of System (TNUoS) charges will rise by around 64% from April 2026, with the average residual charge rising from around £15.70/MWh to £25.70/MWh.

While the final tariffs are slightly lower than the draft figures, businesses and public sector organisations still face a major increase in network costs driven by significant investment in upgrading the UK’s electricity transmission system.

EDF is supporting customers through these changes with expert guidance and tailored insights. You can read the full breakdown in our blog and speak to your account manager for help understanding what this means for your organisation.

Read the full article to understand what’s changing and how to prepare: https://www.edfenergy.com/large-business/talk-power/blogs/-tnuos-rate-increase

BSUoS (Balancing Services Use of System)

In December, the National Energy System Operator (NESO) published the final BSUoS tariffs for Summer 2026 and Winter 2026, covering the April 2026 – March 2027 charging year.

Summer 2026 (Apr–Sep): £13.74/MWh -around £0.50/MWh lower than the draft tariff.
Winter 2026 (Oct–Mar): £12.49/MWh around £0.50/MWh higher than the draft tariff.

Overall, the annual cost impact remains largely unchanged. However, if outturn system costs exceed NESO’s forecasts, these rates can increase at short notice, so risks of higher charges remain.

RO (Renewable Obligation) & FiT (Inflation Indexation Change)

At the end of January, the Department for Energy Security and Net Zero (DESNZ) confirmed their decision to change inflation indexation for both the Renewables Obligation (RO) and Feed‑in Tariff (FiT) schemes from RPI (Retail Price Index) to CPI (Consumer Prices Index).

Because CPI is typically around 1% lower than RPI, this change results in a smaller increase than previously expected. For customers, this equates to an estimated £0.30/MWh combined reduction across RO and FiT compared with earlier forecasts.

If you want to stay up to date on non-energy costs, sign up for the next webinar.

Monitor Report Non-Energy Costs Explained
Join our Wholesale Market Services experts as they share more detailed updates on how the current non-energy costs impact businesses - Taken from our quarterly report, Monitor.
Tuesday 17March at 1pm
Register here

Energy in the News

GHG Protocol Review - What it Means for Organisations

As we reported in November’s Energy Roundup, the Greenhouse Gas (GHG) Protocol is progressing a major update to its Corporate Standard and Scope 2 Guidance - the most significant revision since 2015. These updates aim to modernise how organisations measure, manage and report emissions from purchased electricity.

The GHG Protocol opened a global public consultation on 20 October 2025, and following stakeholder feedback, extended the responses deadline to 31 January 2026.

What’s being proposed?

The consultation outlines several key updates:

Retention of dual reporting
More accurate matching of consumption and renewable energy
Deliverability requirements
Support during transition

Organisations will continue to report both location‑based and market‑based emissions, with clearer hierarchies for emission factors and more robust data definitions.

New requirements will introduce hourly or sub‑hourly matching to better reflect real‑time grid conditions.

Energy attribute certificates will need to demonstrate that electricity is physically deliverable to the reporting grid, improving consistency and credibility.

Measures include phased implementation, simplified options for smaller organisations, and legacy provisions for existing contracts

A second consultation is expected later in 2026, with final publication of the revised Scope 2 Standard currently anticipated in 2027.

At EDF, we’re committed to supporting businesses and the public sector to achieve an electric future for Britain, with a range of products designed to meet evolving emissions reporting needs.

British Industrial Competitiveness Scheme (BICS)

As covered in our previous edition, the government announced the British Industrial Competitiveness Scheme (BICS) in summer 2025 to address concerns over high electricity costs for UK industries.

Key Reminder: From 2027–2030, eligible manufacturers will be exempt from the costs of the Renewables Obligation, Feed‑in Tariffs and the Capacity Market. For qualifying businesses, this could reduce electricity costs by £35–40/MWh.

As expected, the Department for Business and Trade (DBT) published a consultation at the end of November, with responses due mid-January.

To qualify, businesses must:

operate within an IS‑8 sector or a manufacturing foundational industry supporting those sectors
carry out manufacturing activities
meet the required (still unconfirmed) electricity intensity threshold

In our consultation response, EDF highlighted the lack of clarity on how BICS exemptions will be funded. Without this detail, businesses and suppliers cannot accurately assess the reliability of long‑term support. We have urged the government to provide transparency so the cost impact on consumers is fully understood.

A DBT response is expected around the end of Q1, and we will keep you informed as updates become available.

Climate Change Levy (CCL) rate changes

A reminder that Climate Change Levy (CCL) rates will change from 1 April 2026 - the first adjustment since 2021 for electricity and 2024 for gas.

The percentage discounts for organisations with a Climate Change Agreement (CCA) will remain unchanged at 92% for electricity and 89% for gas.

The government also confirmed in the Autumn Budget that CCL rates from April 2027 will increase in line with RPI (Retail Price Index). The new rates will be reflected in bills from April 2026.

For full details, visit the Government website: https://www.gov.uk/guidance/climate-change-levy-rates

A View from the EDF Metering Team

Why moving to Half-Hourly capable metering matters under MHHS

This quarter, Tom Beach from EDF’s Metering Team shares insights on Market‑wide Half‑Hourly Settlement (MHHS) and what we’re calling The Metering Evolution.

As MHHS rolls out, suppliers will face new charges that could increase costs for meters without half‑hourly capability, making upgrades more important than ever. Upcoming meter communication “sunsets” also create risks that could leave some customers without half‑hourly data and unable to access flexibility services.

As a qualified Metering Services Advanced (MSA) and Metering Services Smart (MSS), EDF can support customers through current and future MHHS requirements. And with our new Data Service business launching in May, integrating metering and data services will unlock even greater opportunities to manage and optimise energy performance.

Read the full perspective from Tom and the team: https://www.edfenergy.com/large-business/talk-power/blogs/mhhs-and-the-metering-evolution

Look out for your next edition of the Energy Roundup in May!