Tuesday, 11 August 2026
UK power softens w-o-w but Hormuz LNG risk keeps gas-linked prices elevated
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are higher than they have been for most of the past year, mainly because fighting near a key shipping route in the Middle East is blocking gas tankers from reaching Europe, forcing the UK to use more expensive alternatives. Expect prices to stay elevated and potentially rise again over the next two weeks unless a peace deal opens that shipping route back up.
What's affecting prices
- •Fighting near the Strait of Hormuz is blocking gas tankers, pushing European gas prices higher
- •Europe's gas storage is 11 percentage points below last year's level at the same time
- •Less wind than normal in early August, forcing more gas power stations to run
- •Above-average UK temperatures reducing some heating demand but increasing electricity use for cooling
- •Partial solar eclipse tomorrow (12 Aug) will briefly cut solar power output across the British Isles
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.