Latest Market Update - 30 July 2026
UK gas and electricity prices have fallen slightly today, but they remain much higher than they were a month ago.
UK gas is trading at around 144 pence per therm, while electricity for next month is approximately £120 to £125 per MWh.
Why are prices high?
The main reason is uncertainty in the Middle East.
Qatar is a major supplier of liquefied natural gas, known as LNG. Concerns about ships travelling through the Strait of Hormuz have pushed prices higher.
One LNG ship has passed through safely, which has helped prices fall today. However, the wider situation remains uncertain.
Is there enough gas for winter?
European gas storage sites are around 55% full, which is lower than expected for this time of year.
Prices could rise again if:
Europe experiences a cold winter.
LNG deliveries are disrupted.
Norwegian gas supplies reduce.
Demand increases in Asia.
What about future prices?
Winter 2026 prices remain close to today’s market because traders expect supply and geopolitical risks to continue.
Prices for contracts beginning in 2027 and 2028 are currently lower. However, forward prices can change quickly and are not a guarantee that prices will continue to fall.
What does this mean for businesses?
Renewable energy is growing, but Britain still relies on gas power stations when there is not enough wind or solar power. This means higher gas prices often lead to higher electricity prices.
Businesses with contracts ending within the next 12 to 24 months should review their options early. Those with contracts starting in 2027 or later may currently have access to lower forward prices.
Dukefield Energy’s view
Today’s fall is positive, but the market remains uncertain.
Businesses should monitor prices, review contract dates and consider fixed, flexible or blended purchasing options before their current agreement is close to ending. Acting early provides more time to assess the market and secure a strategy that matches the organisation’s budget and appetite for risk.
