Thursday, 2 July 2026
UK power sharply elevated on gas/wind squeeze; high-pressure suppresses renewables
Prices rising sharply2027 wholesale: £81.48/MWh
Energy prices are noticeably higher than normal right now, mainly because there is less wind than usual across the UK and Europe (high pressure is blocking it) while gas supplies from Norway have tightened and Middle East tensions have kept gas expensive. We expect prices to stay above normal for at least the next week or two unless the wind picks up significantly or the gas supply situation eases.
What's affecting prices
- •Less wind than normal — high pressure across UK and Europe suppressing turbine output
- •Norwegian gas supply to UK has tightened, pushing up gas and power prices
- •Middle East tensions keeping gas expensive, though US-Iran ceasefire talks reduce worst-case risk
- •Europe's gas storage very low for time of year — could push prices higher heading into winter
- •Hot weather across Europe increasing demand for power to run air conditioning
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.