Sunday, 28 June 2026
UK power easing as Iran ceasefire drains risk premium; storage deficit caps downside
Prices may ease slightly2027 wholesale: £81.48/MWh
Energy prices have been coming down over the past few weeks, mainly because talks between the US and Iran have reduced fears that gas supplies from the Middle East would be cut off, making gas cheaper across Europe. Prices are likely to keep drifting a little lower in the short term, but don't expect big falls — Europe's gas stores are unusually low for this time of year, which could push prices back up as winter approaches.
What's affecting prices
- •US-Iran ceasefire progress and Hormuz shipping resuming — less fear of gas supply being cut off
- •Gas prices in Europe falling sharply from June highs as LNG tankers return to the Gulf
- •Europe's gas stores are unusually low — about 14% below normal for this time of year
- •Hot weather across Europe reducing home heating but keeping power stations busy
- •Household energy bills rising 13% in July due to earlier high gas prices now locked into the price cap
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.