Monday, 22 June 2026
Spot spikes on Iran/LNG risk premium; gas eases 9% w/w as Hormuz deal takes hold
Prices may ease slightlyCal-27 wholesale: £81.48/MWh
Energy prices are noticeably higher than normal right now — mainly because a conflict in the Middle East earlier this year disrupted gas supplies to Europe, and that pushed up the cost of making electricity in the UK. The good news is that a peace deal has been signed in the last few days and gas prices have already started falling, so we expect prices to ease back over the next couple of weeks as more gas reaches Europe.
What's affecting prices
- •Gas prices falling fast as Middle East peace deal reopens global LNG shipping routes
- •Today's spot electricity price is well above the monthly average — a leftover spike from the conflict
- •Unsettled, breezy UK weather this week is boosting wind power output and helping push prices down
- •Europe's gas storage is still below comfortable levels for next winter, keeping longer-term prices firm
- •UK household energy bills rise 13% from 1 July due to higher wholesale costs set months ago
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.