Monday, 24 August 2026
Gas-driven rally persists; Hormuz blockade & low EU storage keep curve elevated
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than usual right now, mostly because a blockade in the Middle East is stopping gas tankers from reaching Europe, and gas storage tanks across the continent are unusually low ahead of winter — so the gas that heats homes and powers electricity plants is more expensive and harder to come by. We expect prices to stay high, and possibly rise further, over the next week or two unless the shipping blockade eases or the weather turns significantly cooler.
What's affecting prices
- •Middle East shipping blockade cutting gas tanker deliveries to Europe
- •European gas storage at a record seasonal low of 62% — far below normal for this time of year
- •UK gas prices up nearly double compared to a year ago
- •Nearly 2 GW of UK nuclear power stations offline for maintenance
- •Wind power output forecast to be very low this week, forcing more reliance on expensive gas plants
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.