9th January 2026 Energy Price Alert – UK Gas & UK Electricity
Wholesale gas and electricity prices dropped back on Thursday, which was welcome news.
On the generation side the past week saw the generation cost at the highest level we’ve seen in the last few years at £106.17/MWh, driven by fossil fuels at 38.5% of total generation. To get that in context, over the last year the average price has been £79.66/MWh. Interestingly renewables were at 39.8%, with wind producing 36% of that.
Gas: Gas prices fell yesterday. In the prompt, temperatures are expected to rise to an average of 6°C in weeks 3 and 4, slightly above the norm, limiting heating demand. Ample supplies of LNG continue to be imported in the UK.
Power: Power prices fell yesterday, tracking gas losses. Wind output is expected to rise to 13.9GWs/day in weeks 3 and 4.
Oil: Oil prices rose by 3% yesterday, erasing two days of decline and setting a two-week high. The markets were concerned over developments in Venezuela and Iranian unrest, increasing concerns about output.
Carbon (EUAs): The ICE Dec-26 closed flatly at €88.19/t yesterday. The contract has opened lower at €88.12/t this morning.
Carbon (UKAs): The ICE Dec-26 fell to £68.17/t yesterday. The contract opened at £68.70/t this morning.
