7th January 2026 Energy Price Alert – UK Gas & UK Electricity
Since our last report prior to Christmas the market has been quite volatile, but the net result is that as of yesterday the market closed at the same level as it was on 19th December for both wholesale gas and wholesale electricity.
Given the current geo-political pressures in the world, our prediction is that we can expect to see continued volatility in the weeks ahead.
Gas: Gas prices rose yesterday as cold weather and low wind continued to support demand. Curve prices were dragged upwards by the gains in the prompt and strengthening carbon market.
Power: Power prices rose yesterday, tracking the gains in the gas and carbon markets. Temperatures are forecast 3°C below the norm and wind is expected to generate a below average 11.3GWs/day for the remainder of this week.
Oil: Oil prices fell yesterday after the market continues to be weighed as oversupplied. There’s additional uncertainty surrounding Venezuelan output after US intervention.
Carbon (EUAs): The ICE Dec-26 closed at €88.10/t last night. The contract has opened bullish at €88.20/t this morning.
Carbon (UKAs): The ICE Dec-26 traded up to £68.42/t yesterday, reversing the previous day’s losses. The contract opened at £68.75/t this morning.
