Monday, 20 July 2026
UK power firmly bid on surging gas, ME supply risk & third summer heatwave
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices in the UK are significantly higher than usual right now, mainly because fighting in the Middle East has made it harder and more expensive for Europe to get hold of the gas it uses to generate electricity, and a third heatwave this summer is making everyone use more power at the same time. We expect prices to remain high and possibly go higher over the next couple of weeks unless the conflict eases or the hot weather breaks.
What's affecting prices
- •Middle East conflict disrupting LNG shipments through the Strait of Hormuz
- •European gas storage running far below normal for this time of year
- •Third UK heatwave of 2026 raising electricity demand and cutting wind power
- •Norwegian gas supply to Europe running below normal levels
- •Asian buyers competing with Europe for the same limited LNG cargoes
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.