Saturday, 22 August 2026
UK power surges on Hormuz LNG crunch & record-low EU storage
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are significantly higher than normal right now, mainly because global supplies of gas are being disrupted by a blockade of a key shipping route in the Middle East, meaning Europe cannot get enough gas to fill its storage tanks before winter. We expect prices to stay elevated — and possibly rise further — over the next few weeks unless the blockade ends or the weather turns milder.
What's affecting prices
- •Strait of Hormuz blockade cutting off gas tanker shipments to Europe
- •European gas storage at its lowest level for this time of year on record
- •Norwegian gas field shutdowns reducing pipeline supply to the UK
- •Heatwave across Europe burning gas for cooling instead of storing it
- •UK temperatures above normal but moderating, limiting demand relief
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.