Friday, 7 August 2026
UK power easing from July highs but gas stays elevated on Hormuz/storage fears
Prices may ease slightly2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than usual right now, mainly because global gas supplies have been disrupted by tensions in the Middle East, leaving Europe — and the UK — scrambling to store enough gas before winter. Prices have started to come down slightly from last month's peak, but they are likely to stay high and could jump again quickly if diplomatic talks break down or the wind drops.
What's affecting prices
- •Gas supplies disrupted by Middle East conflict blocking LNG tanker routes
- •Europe's gas storage tanks are unusually low for this time of year — near a 20-year seasonal low
- •UK wind output picking up briefly today, reducing the need to burn gas for electricity
- •A building heatwave (up to 25°C mid-August) will push electricity demand higher next week
- •Hopes of a US-Iran diplomatic deal taking some pressure off prices, but outcome still uncertain
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.