Saturday, 25 July 2026
UK power sharply elevated on surging gas, heatwave demand & grid cable curbs
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are significantly higher than usual right now, mainly because fighting in the Middle East has reduced the amount of gas being shipped to Europe by sea, pushing gas prices — and therefore electricity prices — well above normal summer levels. Expect prices to stay high or climb further over the next one to two weeks, with some risk of a brief dip if the weather turns cooler or a deal is reached in the Middle East.
What's affecting prices
- •Middle East conflict cutting gas ship deliveries to Europe — prices up over 40% this month
- •UK summer heatwave boosting air-conditioning demand across Europe, burning more gas
- •Europe's winter gas stores being filled too slowly — market worried about shortages
- •Grid operator cutting back electricity cables to Europe after supply was stretched by the heatwave
- •Met Office forecasting continued above-normal heat through late July, keeping demand high
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.