Wholesale gas and electricity prices were broadly stable on Thursday, albeit there were increases across the board, modest increases in comparison with earlier in the week.
On the generation front, prices dropped back to just over £130 per megawatt-hour, which is still very inflated but not as bad as last week.
At the retail level, we are seeing prices that are about 15–20 per cent higher than where we would expect to see them and are still firmly of the belief that, as soon as the situation in the Strait of Hormuz is resolved, and specifically gas from Qatar is flowing again, prices will drop back to the levels they were at pre-February 2026 because of a huge oversupply of gas in the world, coupled with subdued demand from China.
| Gas: Gas prices rose yesterday. Prices have continued to climb on geopolitical tensions as hopes of a resolution have weakened. Bearish fundamentals in the prompt, limited gains. Curve prices were further influenced by the need to replenish European Gas storage before the storage deadline. Gas prices have opened mixed in the market. Power: Power prices tracked the wider energy mix and continued to rise yesterday after the US declared that they had no direct negotiations with Iran. Prices have opened mixed this morning. Oil: Oil prices rose 2% yesterday as the US president is not interested in returning to terms of a memorandum of understanding reached with Iran in June. Prices have fallen in the open this morning. Carbon (EUAs): The ICE Dec-26 closed at €82.42/t last night. The contract opened this morning at €82.40/t. Carbon (UKAs): The ICE Dec-26 traded to £59.00/t yesterday. Opening this morning at £59.07/t. |
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