Friday, 21 August 2026
UK power firms near recent highs as Hormuz LNG risk keeps gas elevated
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are higher than normal right now, mainly because there is a major disruption to global gas supplies caused by a blockade of a key shipping route in the Middle East, which is making gas — and therefore electricity — more expensive across Europe. We expect prices to stay elevated and possibly push higher over the next couple of weeks unless there is a breakthrough in the Middle East standoff or the weather turns much windier than forecast.
What's affecting prices
- •Strait of Hormuz blockade cutting global gas shipping, pushing up the price of gas across Europe
- •No progress on US-Iran talks — blockade confirmed to remain in force
- •French nuclear power stations running well below normal, reducing electricity the UK can import
- •Norwegian gas supply disruption (Gullfaks partial outage) tightening pipeline flows to GB
- •August warmer than usual across the UK, slightly increasing cooling demand
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.