Wednesday, 2 September 2026
UK power firmly bid on Middle East LNG shock; Win-26 base ~135 £/MWh
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are noticeably higher than usual right now, mainly because fighting in the Middle East has blocked a major shipping route that carries gas to Europe, so gas is scarce and expensive, and that pushes electricity prices up too. Over the next couple of weeks prices are likely to stay elevated or drift higher unless the situation calms down or the weather turns much windier across the UK.
What's affecting prices
- •Middle East conflict blocking a major gas shipping route, making gas much harder to get hold of in Europe
- •European gas storage tanks are only about 64% full — unusually low for this time of year
- •Gas prices have more than doubled compared to a year ago, pulling electricity prices up with them
- •UK weather turning unsettled with rain and wind — some help from wind generation in the north-west, but patchy
- •Ofgem price cap rising 4% in October and forecast up another 9% in early 2027
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.