UK Energy Market Update: 12th - 16th Jan 2026
Gas jumps 17% as cold weather hits Europe
Get quotes now. Gas rose 17% and power up 10% this week as cold weather forecasts sent markets higher. Winter contracts are still climbing and could go further before they settle.
💡 Cold weather fears drove the biggest weekly price jump in months, but future contracts suggest the market expects this spike to ease
📊 This Week vs Last Week
Both gas and power had their biggest weekly rises in months
🔍 What Moved the Market
What Happened This Week
Gas prices jumped from 64.70p to 76.64p (+18.5%) and power rose from £70.30 to £77.66 (+10.5%) as cold weather forecasts dominated trading. The big story was February gas hitting 97p mid-week before settling at 96.75p. Weather runs kept traders on edge all week, with prices swinging on every forecast update.
The Full Story
Key Days
Gas started climbing as weather models showed cooler temperatures coming
Winter demand fears pushed front-month contracts to weekly highs
Weekend weather runs turned warmer, giving markets some relief
Forward Prices
The market is telling us this cold weather scare should be temporary. While February gas hit 97p, Summer 2026 is at 73p and 2027 at just 64p. Traders expect prices to ease once we get through this winter, but the risk is that cold weather keeps pushing even future contracts higher.
When Should You Buy?
Winter contracts are getting expensive fast. If you're renewing soon, lock in now before another cold snap sends prices even higher. February is already 35% up from last week.
Spring prices jumped 29% this week but are still above current rates. The cold weather premium is spreading to later months. Get quotes now before winter fears push spring contracts higher.
Summer is climbing but still slightly below today's spot rates. The market expects some cooling by then, but prices are rising fast. Lock in now before they catch up with winter levels.
Next winter is still priced below current levels and rose less than nearer months. You could wait a bit longer, but keep watching - if this cold weather pattern continues, even distant winters could climb.
2027 contracts barely moved and are still well below current prices. The market expects this winter spike to fade by then. You can probably wait for better levels unless prices keep climbing.
👀 Looking Ahead
Next week will be all about actual temperatures versus forecasts. If the cold spell arrives as predicted, prices could test those mid-week highs again. But if it stays mild, we might see some of this weather premium start to unwind.
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Current rates: Gas 76.64p/kWh · Power £77.66/MWh
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