Monday, 3 August 2026
UK power surges >12% above week-mean on Middle East gas supply shock
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than normal right now — mainly because fighting in the Middle East has disrupted gas supplies to Europe, making the gas that powers many UK electricity stations more expensive. We expect prices to stay high or rise further over the next week or two unless the conflict calms down or more gas ships arrive in Europe.
What's affecting prices
- •Middle East fighting has made gas much harder to get hold of in Europe
- •European gas storage tanks are well below where they need to be heading into winter
- •LNG tankers from Qatar are stuck and cannot deliver gas to Europe
- •Gas prices have shot up more than 38% in a single month, pushing electricity prices with them
- •The UK government plans a small electricity bill cut in October, but it won't affect today's prices
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.