Latest Market Update - January 2026

  • After a period of relative stability, electricity prices have begun to rise steadily since mid‑December, while gas prices have remained comparatively low.

  • Colder weather is expected over the coming days as Storm Goretti moves across the UK, bringing snow, strong winds and widespread weather warnings. This is likely to increase heating demand and accelerate the use of gas storage and short‑term supply.

  • Forecasts indicate that below‑seasonal temperatures may continue beyond the weekend and potentially into February, adding further upward pressure on demand.

  • EU gas storage levels currently stand at around 59% as of 8 January and are declining at a faster‑than‑usual rate due to increased winter withdrawals.

  • Regular LNG imports into Europe are helping to offset some of the supply risks associated with the colder outlook and are providing a degree of stability to the gas market.

  • Geopolitical tensions are adding uncertainty, with recent signals from the US regarding military options in Greenland unsettling NATO relations and contributing to a more bullish tone across energy and wider financial markets.

Electric 3-Month Market Price

 

Gas 3-Month Market Price

Ellie Taylor