Thursday, 27 August 2026
UK power spot firm above £131/MWh as Iran LNG crisis drives gas to 3-yr highs
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than usual right now, mainly because a conflict in the Middle East is blocking gas tanker ships from reaching Europe, pushing gas prices to their highest in three years — and since most UK electricity is made by burning gas, electricity costs are rising too. Expect prices to stay high or go even higher over the next few weeks unless the shipping lanes reopen or the weather in Europe cools down.
What's affecting prices
- •Middle East conflict blocking gas tanker ships, pushing gas prices to their highest in three years
- •European gas storage very low — major countries well behind their seasonal targets
- •Nuclear power stations shutting down for maintenance in early September, reducing electricity supply
- •Hot weather across Europe increasing electricity demand and slowing gas top-ups
- •Ofgem raising household energy price cap by 4% in October, reflecting sustained high wholesale prices
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.