Friday, 24 July 2026
UK power near recent highs — Hormuz LNG blockade and heatwave push gas sharply higher
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are significantly higher than normal right now, mainly because fighting in the Middle East has stopped gas tanker ships from reaching Europe, pushing up the cost of gas that powers much of the UK's electricity. We expect prices to stay high or push even higher over the next week or two unless there is a peace deal or more wind arrives to reduce how much gas power stations need to run.
What's affecting prices
- •No gas tanker ships allowed through the Strait of Hormuz since 12 July — less supply reaching Europe
- •Record summer heatwave across the UK and Europe — much more electricity being used for cooling
- •UK and European gas storage dangerously low for this time of year — not enough saved up for winter
- •Two French nuclear power stations offline or delayed — less cheap electricity available nearby
- •Gas prices nearly double what they were a year ago — electricity follows gas up
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.