Wednesday, 26 August 2026
UK power eases from peak on gas dip, but Hormuz/storage risk keeps curve firm
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are significantly higher than normal right now — roughly double what they were a year ago — mainly because ships carrying gas to Europe cannot get through a blocked shipping route in the Middle East, and Europe has far less gas stored for winter than it usually would at this time of year. We expect prices to stay elevated or possibly rise further over the coming weeks unless the shipping route reopens or the weather turns mild across Europe.
What's affecting prices
- •Ships carrying gas to Europe blocked in the Middle East — less gas arriving
- •Europe's gas storage tanks are much lower than usual ahead of winter
- •US threatening new sanctions on Iran — could make supply worse
- •Torness nuclear power station offline (nearly 2,000 MW lost)
- •Norwegian gas pipeline maintenance cutting supply to UK by ~15 mcm/day
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.