Sunday, 9 August 2026
UK power softening from July highs but heatwave & LNG tightness keep floor firm
Prices may ease slightly2027 wholesale: £84.48/MWh
Energy prices are still well above where they were a year ago, mainly because gas coming into Europe by ship has been disrupted by tensions in the Middle East, and a hot spell is on the way that will push up electricity demand across the country. Prices may ease a little day-to-day as the summer heat passes, but they are likely to stay high for the rest of the year unless gas supplies improve significantly.
What's affecting prices
- •Gas supplies disrupted — ships carrying liquid gas from the Middle East are being delayed, pushing up gas prices across Europe
- •Very hot weather on the way — temperatures hitting the mid-30s°C mid-week means more electricity needed for cooling and less wind power generated
- •Europe's gas stores are unusually low — only 56% full, raising worries about winter shortages
- •Limits on electricity cables to Europe — the grid operator has capped how much power can cross to the continent, reducing a key safety valve
- •Prices are easing slightly from July's peak — today's price is about 8% below last month's average, offering a small window of relative calm
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.