Friday, 28 August 2026
UK power softens on summer lull; winter risk elevated by tight EU gas storage
Prices may ease slightly2027 wholesale: £84.48/MWh
Energy prices are lower than they have been over the past month — mainly because it is a quiet summer period with good solar generation keeping daytime costs down — but prices are expected to climb again as winter approaches, driven by gas supplies across Europe being much lower than normal after disruptions in the Middle East. Over the next couple of weeks expect prices to stay relatively subdued unless there is a sudden drop in wind or a new supply shock from the ongoing conflict around the Strait of Hormuz.
What's affecting prices
- •Gas supplies in Europe much lower than normal — storage tanks are about 10% less full than usual for this time of year
- •War in the Middle East blocking gas tanker routes through the Strait of Hormuz, cutting supplies from Qatar
- •Daytime solar generation keeping today's prices lower than the monthly average
- •UK paying wind farms over £1 billion to switch off due to grid bottlenecks — wasted green power adding to costs
- •Energy bill price cap going up 4% in October — the second rise in 2026 — pushing bills to a three-year high
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.