Smart Energy Insights
Energy Insights
Thomas McGlynn • 1 September 2026

UK Monthly Energy Market Report: August 2026

SMART ENERGY
Monthly Energy Briefing · UK
Month of August 2026
Latest settlement: 27 August 2026
Monthly review · August 2026

The month in review: gas firmed 16.5%, power firmed 11.2%

A week-by-week recap of how UK gas and electricity moved across August 2026, and where that leaves businesses approaching renewal.

This month vs last Both firmer on the month
Bigger picture Still high over the six months held
Key risk Strait of hormuz tensions persist
The month in review

How the month actually moved

Not one day's snapshot — the whole month, week by week. Each point is the front-month's average for that week, so you see the shape of the month, not just where it ended.

Month of August 2026
Natural gas
The month in weeks · p/therm
↑ 16.49%
vs last month
137.41 164.36 W1 W2 W3 W4
rose through the month · +19.6% across the month
Month avg 150.77 Month low 128.04 Month high 168.20
low 78.57 Month close · today ● 168.20 high
Electricity
The month in weeks · £/MWh
↑ 11.23%
vs last month
115.97 130.32 W1 W2 W3 W4
rose through the month · +12.4% across the month
Month avg 123.00 Month low 110.33 Month high 133.10
low 71.97 Month close · today ● 133.10 high
What matters

One month rarely changes a renewal decision

The shape: a month that fell then bounced tells you more than the net number.
Wider view: the 6-month charts below show whether this month is part of a longer trend.
For buyers: a good month doesn't reset your deadline — your contract end date still drives urgency.
Biggest move of the month Q1-27 gas ↑ 22.57% — the largest 30-day swing across every contract we track.
Why prices moved

Forces pulling prices in both directions

A balanced view is more useful than a single prediction. These are the main influences in the latest report.

Pressure pulling prices lower

Wind and solar offered relief

Renewable generation — particularly wind — has been volatile but generally supportive through August. Strong wind output in late August eased gas-for-power demand and provided downward pressure on power prices on several occasions. Solar output has remained around seasonal norms, adding to the generation mix.

Risks that could push prices higher

Strait of hormuz tensions persist

Geopolitical tension over the Strait of Hormuz has been the dominant driver all month. The US-Iran interim ceasefire expired on 17 August without resolution, and negotiations have stalled repeatedly. By month-end, Iran and Oman have agreed a framework for a temporary navigational corridor, but the outlook remains uncertain. Shipping traffic through the strait has been severely constrained, delaying Qatari LNG deliveries and keeping a risk premium in the market.

European storage at seasonal lows

European gas storage ended August at 63.3% full — among the lowest levels for this time of year in over a decade, roughly 9–10 percentage points below the five-year average. Germany sits at 50.7% and the Netherlands at 43.9%, lagging furthest behind. The EU has relaxed its mandatory fill target for 1 November from 90% to 80%, a tacit admission that winter preparation is running behind.

Norwegian maintenance ramps up

Norwegian gas production has faced repeated disruptions through August, with unplanned outages at Kårstø, Gullfaks, Asgard and Troll removing capacity on multiple occasions. The Ormen Lange field remains partially offline until February 2027, removing 8.9 mcm/d of supply. Planned maintenance is now ramping up significantly in September, with offline capacity expected to climb from 25 mcm/d in late August to 70–75 mcm/d, with some days exceeding 100 mcm/d.

Heatwaves drove power demand

Multiple heatwaves across the UK and continental Europe in August pushed temperatures 7–10°C above seasonal norms, driving cooling demand and gas-fired power generation. France saw nuclear capacity constrained by heat-related shutdowns and low river temperatures affecting cooling. The Danube hit record lows, forcing Romania to shut its 1.4 GW Cernavoda nuclear plant and constraining generation across Central Europe.

Qatar lng force majeure extended

QatarEnergy extended its force majeure declaration through October on 28 August, deepening concerns about near-term LNG availability. Combined with constrained traffic through the Strait of Hormuz, this removes a key source of supply relief that Europe was counting on to rebuild storage before winter.

6-month direction

Was this month a blip or a trend?

The month-on-month number tells you the direction; these 6-month lines tell you whether it's part of a bigger move. Each tracks a rolling maturity — the near-term price, the next winter and the year ahead — so nothing breaks as contracts roll off. Hover for the value on any day.

Gas forward prices

Rolling maturities · p/therm

Near-term (Sep-26) Next winter (Win-26) Year ahead (Cal-27)

Each line is a rolling maturity — the near-term line always follows the current front month, so it never breaks as contracts roll off.

Power forward prices

Rolling maturities · £/MWh

Near-term (Sep-26) Next winter (Win-26) Year ahead (Cal-27)

Power tends to track gas; the chart shows how far the recent move has carried.

Your renewal window

Guidance grouped by how soon your contract ends

Timing urgency comes from your deadline; the market view comes from the forward contracts covering each renewal's supply period. Open your band for separate gas and electricity evidence.

Timing and value are different. Wholesale prices are currently rising. If your contract ends within three months, still get live quotes now — your decision window is shortening. Later renewals have more time to monitor the market.
1–3 months September–November 2026
Sep 2026 Oct 2026 Nov 2026
Get live quotes now

Gas is up 2.5–4.2% this week and up 13.6–22.6% over 30 days; electricity up 2.4–3.8% this week, up 8–17.4% over 30 days.

Evidence confidence Medium
Gas Near the top
Rising
This week Up 2.5–4.2% 30 days Up 13.6–22.6%
low 68.41 Win-26 · today ● 169.76 high

Evidence: Win-26, Sum-27, Nov-26, Q4-26, Q1-27, Win-27

Electricity Near the top
Rising
This week Up 2.4–3.8% 30 days Up 8–17.4%
low 71.62 Win-26 · today ● 138.50 high

Evidence: Win-26, Sum-27, Nov-26, Q4-26, Q1-27, Win-27

What this means

Your deadline creates the urgency. Use the current move to compare live supplier quotes now, but don't treat one falling day as proof the market has reached its bottom.

4–6 months December 2026–February 2027
Dec 2026 Jan 2027 Feb 2027
Review and compare

Gas is up 2.5–4.2% this week and up 13.6–22.6% over 30 days; electricity up 2.4–4.6% this week, up 8–17.4% over 30 days.

Evidence confidence Medium

⚠ December leans on Cal-27 only, so it has less seasonal visibility.

Gas Near the top
Rising
This week Up 2.5–4.2% 30 days Up 13.6–22.6%
low 62.66 Cal-27 · today ● 122.74 high

Evidence: Cal-27, Q1-27, Sum-27, Win-27

Electricity Near the top
Rising
This week Up 2.4–4.6% 30 days Up 8–17.4%
low 65.12 Cal-27 · today ● 103.90 high

Evidence: Cal-27, Q1-27, Sum-27, Win-27

What this means

Start reviewing the market and compare 12-, 24- and 36-month options. You have time for a considered decision, so weigh the certainty each term buys rather than chasing a perfect day.

7–9 months March–May 2027
Mar 2027 Apr 2027 May 2027
Prepare and monitor

Gas is up 1–4% this week and up 8.5–16.2% over 30 days; electricity up 0.3–4% this week, up 5.1–10.2% over 30 days.

Evidence confidence Medium
Gas Near the top
Rising
This week Up 1–4% 30 days Up 8.5–16.2%
low 57.84 Sum-27 · today ● 109.17 high

Evidence: Sum-27, Win-27, Q2-27, Sum-28

Electricity Near the top
Little changed
This week Up 0.3–4% 30 days Up 5.1–10.2%
low 59.74 Sum-27 · today ● 92.34 high

Evidence: Sum-27, Win-27, Q2-27, Cal-28

What this means

Get usage and site details ready, monitor the relevant forward contracts and use indicative quotes to understand the range. No need to force a decision while visibility is adequate.

10–12 months June–August 2027
Jun 2027 Jul 2027 Aug 2027
Plan ahead and watch

Gas is up 1–3.8% this week and up 8.5–16.2% over 30 days; electricity up 0.3–3.8% this week, up 5.1–9.3% over 30 days.

Evidence confidence Medium
Gas Near the top
Rising
This week Up 1–3.8% 30 days Up 8.5–16.2%
low 65.81 Win-27 · today ● 105.59 high

Evidence: Sum-27, Win-27, Sum-28

Electricity Near the top
Little changed
This week Up 0.3–3.8% 30 days Up 5.1–9.3%
low 74.51 Win-27 · today ● 92.00 high

Evidence: Sum-27, Win-27, Cal-28

What this means

Plan your procurement timetable and stay informed. Far-dated products can hide seasonal detail, so a firm buy-or-wait instruction would be false precision at this stage.

The honest read

Gas and power are not moving together. That makes any single read of the market less reliable.

And wholesale is only part of a quote — non-energy charges, credit, volume and shape all move the final rate. The practical decision is how much further movement your business can tolerate before its contract deadline.

If prices ease further

Wind, milder weather and diplomacy help

If the Iran-Oman framework holds and shipping normalises through the strait, Qatari LNG could flow more freely into Europe. Combined with the end of the summer heatwave and cooler autumn weather reducing demand, prices could ease back — particularly in the far-dated contracts where the market is pricing in winter tightness that may not materialise if supply improves.

If prices rise again

Low storage leaves little cushion

If diplomatic talks over the Strait of Hormuz break down further or military escalation resumes, prices could spike sharply. A sustained closure of the strait would remove significant LNG supply and push both gas and power materially higher, particularly in Europe where storage is already constrained.

Fixing buys budget certainty. It does not prove that a business has predicted the market correctly.

Check a live quote → Or call 0151 459 3388 · Independent broker since 2014
Market in numbers

The wholesale forward curve

Where the month ended across every contract — kept for readers who want the detail.

Open gas and electricity forward tables
Monthly, quarterly, seasonal and annual contracts · month-ending close
View data ⌄

Gas

p/therm
Contract Price Day Week 30d
Sep-26 month 166.89 ↑ 3.65% ↑ 3.51% ↑ 17.85%
Oct-26 month 168.49 ↑ 3.84% ↑ 4.07% ↑ 18.91%
Nov-26 month 171.65 ↑ 3.44% ↑ 4.08%
Q4-26 quarter 171.17 ↑ 3.51% ↑ 4.01% ↑ 19.04%
Q1-27 quarter 167.32 ↑ 3.37% ↑ 4.20% ↑ 22.57%
Q2-27 quarter 113.58 ↑ 3.01% ↑ 4.00% ↑ 15.01%
Win-26 season 169.26 ↑ 3.43% ↑ 4.10% ↑ 20.74%
Sum-27 season 109.17 ↑ 2.99% ↑ 3.78% ↑ 16.19%
Win-27 season 105.59 ↑ 2.76% ↑ 2.54% ↑ 13.57%
Sum-28 season 73.47 ↑ 1.56% ↑ 1.00% ↑ 8.49%
Cal-27 calendar 122.74 ↑ 3.08% ↑ 3.59% ↑ 16.01%
Cal-28 calendar 82.84 ↑ 1.92% ↑ 1.63% ↑ 11.45%
Cal-29 calendar 69.21 ↑ 1.32% ↑ 1.09% ↑ 6.07%

Electricity

£/MWh
Contract Price Day Week 30d
Sep-26 month 133.10 ↑ 2.88% ↑ 4.61% ↑ 11.46%
Oct-26 month 131.16 ↑ 2.23% ↑ 2.74% ↑ 13.64%
Nov-26 month 141.68 ↑ 1.92% ↑ 2.63%
Q4-26 quarter 138.00 ↑ 2.02% ↑ 2.80% ↑ 13.32%
Q1-27 quarter 137.33 ↑ 1.35% ↑ 3.64% ↑ 17.40%
Q2-27 quarter 94.79 ↑ 4.23% ↑ 4.04% ↑ 10.18%
Win-26 season 137.67 ↑ 1.69% ↑ 3.22% ↑ 15.29%
Sum-27 season 92.25 ↑ 1.52% ↑ 3.84% ↑ 9.28%
Win-27 season 92.00 ↑ 0.83% ↑ 2.36% ↑ 8.04%
Cal-27 calendar 103.77 ↑ 1.32% ↑ 4.57% ↑ 12.20%
Cal-28 calendar 75.30 ↑ 0.69% ↑ 0.32% ↑ 5.11%
Cal-29 calendar 69.21 ↑ 0.95% ↑ 1.40% ↑ 3.47%
Fixed-term choices

Contract length is a risk decision, not a forecast

No term protects against every outcome. Weigh the certainty the business wants against how soon it is willing to return to the market.

12

months

More flexibility if markets fall, but the business returns to the market sooner.

  • Shorter budget certainty
  • Earlier exposure to the next renewal
  • Useful where flexibility matters most
24

months

A middle ground between price certainty and revisiting the market.

  • Two-year budgeting
  • Less frequent procurement
  • Still allows a medium-term review
36

months

Greater certainty, but a longer commitment if markets later fall.

  • Longest budget protection
  • Reduced exposure to near-term shocks
  • Higher opportunity cost if prices drop
Source: SEFE Energy daily reports across August 2026. Month figures are the average of each day's front-month close; the "vs last month" move compares this month's average with the previous month's. Analysis, positions and confidence are produced independently by The Smart Energy Company.
History basis: 161 distinct business-day reports from 5 January 2026 to 28 August 2026.
Important: General market information, not a forecast or a recommendation to enter a particular contract. Actual supplier pricing depends on usage profile, network costs, levies, losses, credit and margin.