Gas and Power Both Jumped This Week — Middle East Tensions and a Shaky Norwegian Supply Are the Reasons Why
📊 Week ending 21 August 2026
Gas (next-month price): 5.50p per kWh — up 8.6% on the week
Power (next-month price): 12.72p per kWh — up 3.9% on the week
What happened this week
It was a bullish week for energy prices, and the reasons were mostly outside the UK’s control. Tensions in the Middle East ramped up sharply: a 60-day agreement between the US and Iran expired without being renewed, the US announced a fresh crackdown on Iranian finances, and the UAE suspended economic dealings with Tehran. That pushed shipping restrictions through the Strait of Hormuz — a key route for oil and gas tankers — and delayed cargoes of Qatari gas that would normally help top up European supply.
At the same time, Norway — one of the UK’s most important gas suppliers — had unplanned outages at two of its processing sites, which squeezed how much gas could flow into the UK and Europe just as everyone’s turning their attention to winter.
Power prices followed gas higher, and had their own extra push: UK wind output dropped by around a third mid-week, so gas-fired power stations had to work harder to keep the lights on, right as several nuclear power stations were offline for repairs. Less spare capacity generally means higher prices.
What moved the market
- ↑ Middle East tensions escalating — shipping restrictions and a US pressure campaign on Iran
- ↑ Delayed gas shipments from Qatar
- ↑ Unplanned outages at two major Norwegian gas processing sites
- ↑ Weak UK wind output mid-week, forcing gas power stations to pick up the slack
- ↓ UK gas demand eased slightly as the weather stayed mild
Where prices are right now
Gas
| Contract | Price | Change on the week |
|---|---|---|
| Day-ahead | 5.45p per kWh | — |
| Next month (September) | 5.50p per kWh | ↑ 8.6% |
| This coming winter | 5.55p per kWh | ↑ 9.0% |
| Full year from April 2027 | 4.04p per kWh | ↑ 10.0% |
Power
| Contract | Price | Change on the week |
|---|---|---|
| Day-ahead | 14.17p per kWh | — |
| Next month (September) | 12.72p per kWh | ↑ 3.9% |
| This coming winter | 13.34p per kWh | ↑ 6.9% |
| Full year from April 2027 | 9.92p per kWh | ↑ 7.0% |
(These are wholesale prices — what suppliers themselves pay before their own margin, network charges and VAT are added on. Your actual contract rate will sit above these figures, but it moves broadly in line with them.)
What it means for your business
To put this week’s move in real terms: for a typical small business using around 200,000 kWh of gas a year, this week’s rise alone is equivalent to roughly £870 a year at wholesale level. For a typical 50,000 kWh electricity user, this week’s power move works out to roughly £240 a year. These are indicative wholesale figures, not your actual bill impact — but they show how quickly a single week can move the numbers.
If your contract ends in the next 6 months: both gas and power have moved up meaningfully this week, and the move wasn’t just a blip — it’s being driven by genuine supply problems (Middle East shipping, Norwegian outages, thin UK storage) rather than short-term speculation. Worth having a conversation sooner rather than later.
If you’re on a variable rate or out of contract: you’re exposed to exactly this kind of week-on-week swing. Getting a fixed quote in front of you costs nothing and gives you something to compare against.
If you’re already fixed for 12 months or more: this week’s move doesn’t affect you directly, but it’s worth knowing the market’s turned, so you’re not caught off guard when your renewal date does come round.
What we’re watching next week
- Whether the Norwegian outages at Kårstø and Gullfaks start to ease
- UK wind generation, which is forecast to recover sharply and could pull power prices back down
- Any further developments around Strait of Hormuz shipping
- Two more nuclear plants going offline for planned maintenance (Torness on 28 August, Heysham on 31 August and 4 September) — worth watching for further tightening in supply
Bottom line: worth a ten-minute conversation with whoever handles your energy contracts.
Wholesale prices shown are what suppliers pay before their own margin, hedging costs, network charges, environmental levies and VAT are added — retail contract rates typically sit higher, but move roughly in step with wholesale prices.
Telnergy Ltd | Independent commercial energy consultancy | Ofgem Registered TPI
Source: SEFE Energy UK/BE Weekly Energy Report, week ending 21 August 2026
hello@telnergy.com | 01202 028888 | telnergy.uk
Telnergy Limited is an independent commercial energy consultancy established in 2002, based in Christchurch, Dorset. Ofgem registered TPI · ADR Ref E3561 · CRN 04576876.