Friday, 26 June 2026
UK power sharply above weekly mean as heatwave demand eclipses easing gas prices
Prices may ease slightly2027 wholesale: £81.48/MWh
Energy prices are noticeably higher than they have been over the past month, mainly because Europe is in the middle of a heatwave — hot weather means more people use air conditioning, which pushes up demand for electricity at the same time as gas prices are falling due to a peace agreement in the Middle East. We expect prices to drift lower over the next couple of weeks as the hot spell passes and cheaper gas continues to flow into Europe.
What's affecting prices
- •Hot weather across Europe pushing up demand for electricity (air conditioning)
- •Lower gas prices as Middle East peace deal reopens key shipping route
- •French nuclear power stations running below normal output due to heat
- •Europe importing more electricity from neighbours than usual, adding supply
- •Gas storage across Europe still relatively low ahead of next winter — uncertainty remains
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.