Pharmacies, in particular, are highly energy-dependent businesses. From keeping medicines refrigerated and maintaining temperature-controlled environments, to lighting, IT systems, and extended opening hours, energy is not something you can reduce without impacting service or compliance.
The recent disruptions have created uncertainty in the market. While there has been no direct damage to infrastructure, reduced LNG flows have made suppliers more cautious. As a result, if you are procuring energy yourself, you may notice:
Shorter quote validity periods
Fewer fixed-price options
Delays or pauses in contract offers
This is because suppliers are trying to manage risk in a volatile market where prices can change quickly.
Why This Matters for Pharmacies
Unlike many businesses, pharmacies can’t simply cut back on energy usage. You must:
Maintain consistent refrigeration for vaccines and medicines
Keep premises at regulated temperatures
Ensure a safe, well-lit environment for patients and staff
This means you are more exposed to rising energy costs and less able to offset them operationally.
What Pharmacies Should Be Doing Now
1. Review Your Current Contract Immediately - Check your contract end date and current rates. If you're within 6–12 months of renewal, now is the time to start planning.
2. Avoid Out-of-Contract Rates - If your agreement expires and you roll onto deemed/out-of-contract rates, you could face significantly higher costs, often the most expensive rates available.
3. Be Ready to Act Quickly - In the current market, prices may only be available for a short window. Being prepared means you can secure a contract when rates are favourable.
4. Consider Budget Certainty - Fixed contracts can help protect your pharmacy from sudden price spikes, which is especially important for cash flow in a regulated sector.
5. Look at Efficiency Opportunities - Even small changes can help such as; upgrading to LED lighting, ensuring refrigeration units are efficient and well-maintained and reviewing opening hours vs. energy usage patterns.
Why You Need to Review Contracts and Who to Speak to
The current situation is expected to be short-term, but while volatility remains, timing is critical.
By reviewing your contract and speaking with an NPA Trusted Partner:
You can avoid being caught on expensive default rates
The Partner can monitor the market on your behalf and alert you when pricing opportunities arise
You gain access to supplier options that may not always be publicly available
This Partner can help ensure your contract aligns with your pharmacy’s operational needs
In a fast-moving market, pharmacies that plan ahead are in a much stronger position than those reacting at the last minute.
As an NPA member, you receive a free review to get your energy on the right track. Visit https://www.fullpowerutilities.com/partners/npa
