Wednesday, 29 July 2026
Gas-led sell-off trims prompt, but tight supply stack keeps curve firm
Prices may ease slightly2027 wholesale: £84.48/MWh
Energy prices are higher than usual right now, mainly because several UK power stations are temporarily shut down at the same time as supplies of gas from the Middle East have been disrupted by conflict — though prices dipped slightly this week as tensions paused. Over the next week or two prices are likely to stay elevated and could jump again quickly if the Middle East situation worsens or the wind stays light.
What's affecting prices
- •Several UK nuclear power stations are shut down at once, leaving less electricity available
- •Gas prices remain much higher than last year because Middle East conflict has restricted LNG ship movements through the Strait of Hormuz
- •Europe's gas storage tanks are roughly 11% less full than this time last year, raising fears of shortages next winter
- •UK grid managers have limited how much electricity can flow in from Europe via undersea cables, reducing the safety buffer
- •A pause in US-Iran fighting briefly eased gas prices, but the situation could reverse quickly
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.