Thursday, 16 July 2026
UK power near 3-month highs as Hormuz LNG fears and nuclear outages bite
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than normal right now, mainly because fighting in the Middle East is threatening the ships that carry gas to Europe, and several UK and French power stations are shut for repairs at the same time. We expect prices to stay high or push even higher over the next week or two unless the shipping situation calms down or more wind arrives.
What's affecting prices
- •Middle East conflict is slowing gas tanker shipments to Europe via the Strait of Hormuz
- •Several UK nuclear power stations are shut for maintenance at the same time
- •France is producing less electricity from nuclear plants due to summer heat affecting river cooling water
- •Europe's gas storage tanks are much less full than usual for this time of year — about 24 percentage points below the five-year average
- •Light winds and dry, settled weather across the UK this week are reducing wind and hydro power output
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.