UK Energy Market Update: 26th - 30th Jan 2026
Energy prices jump 7% as cold weather returns
Get quotes now. Gas prices jumped 6.7% this week and are at their highest in four weeks. Winter contracts are still cheaper than current rates, but that gap is closing fast.
💡 Prices are at four-week highs and climbing as winter weather patterns reassert themselves.
📊 This Week vs Last Week
Both gas and power prices rose this week, with gas seeing the bigger jump
🔍 What Moved the Market
What Happened This Week
Gas prices climbed from 78.43p to 83.67p this week - up 6.7%. Power followed suit, rising 3.3% to £80.40. Prices are now 14.5% above the recent four-week average of 73p. The main culprit was colder weather forecasts after earlier predictions turned milder.
The Full Story
Key Days
Gas jumped on cold weather fears but settled as forecasts moderated
Below-normal temperatures hit and wind generation looked weaker
Forward Prices
The market still expects prices to ease over time - summer 2026 is 8% cheaper than today and 2027 is 18% cheaper. But those discounts are shrinking as near-term prices climb faster than longer-term ones. The curve is getting flatter, suggesting less confidence that prices will fall quickly.
When Should You Buy?
February contracts are expensive because it's peak winter, but they're rising. If you need gas next month, lock in rates now before they climb further.
March contracts jumped 6.4% this week as the market prices in extended cold weather. Still above current rates but rising fast - get quotes before spring premiums grow.
Summer rates are still below current prices but climbing - up 3.7% this week. The market expects prices to ease by summer, but that discount is shrinking. Get quotes now while there's still a saving.
Next winter's contracts are barely cheaper than today's prices and rose 3.6% this week. The small discount suggests the market isn't confident prices will fall much. Act now while there's still a modest saving.
2027 contracts offer decent savings versus today and barely moved this week. The market still expects lower prices further out, so you could wait a bit longer for potentially better rates.
👀 Looking Ahead
Watch weather forecasts closely - any signs of extended cold will keep pressure on prices. Also keep an eye on Norwegian gas flows and whether the US deep freeze starts to ease. Geopolitical tensions around trade could add more uncertainty.
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Current rates: Gas 83.67p/kWh · Power £80.40/MWh
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