Monday, 10 August 2026
UK power steady near spot; gas elevated on Hormuz/LNG supply crunch
Prices broadly stable2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than they were a year ago, mainly because a conflict in the Middle East has been disrupting gas supplies from the Persian Gulf, leaving Europe with less gas stored for winter than normal. Prices may ease a little if peace talks succeed, but expect them to stay high and sensitive to news for the next couple of weeks.
What's affecting prices
- •Middle East conflict has cut global gas supplies, pushing gas and electricity prices much higher than a year ago
- •Europe has less gas in storage than normal for this time of year — the lowest in nearly 20 years — making the market nervous about winter
- •Peace talks between the US and Iran have reached an advanced stage, which could ease gas prices if a deal is struck
- •Less wind and hotter-than-usual weather in recent weeks has pushed electricity demand up and cut cheap renewable power
- •Cross-Channel electricity cables are being restricted by the grid operator, reducing the amount of cheaper European power that can flow into the UK
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.