UK Energy Market Update - Prices Hold Steady as Nuclear Returns and Renewables Balance Supply - 8th September 2025

UK wholesale gas and power prices remained stable last week, supported by nuclear returns, strong renewables, and healthy storage. Read the full Bright Edge update.

WEEKLY ENERGY MARKET INSIGHTBUSINESS ENERGY

9/8/20251 min read

Stable prices as nuclear returns and renewables provide balance

Last week brought relative stability to UK energy markets, with wholesale gas and electricity prices holding steady. Improved nuclear availability, strong solar output, and steady LNG supply kept conditions balanced, even as Norwegian maintenance added a modest risk premium.

Electricity Market: Stability Returns After Volatile End to August

Day-ahead baseload electricity prices recovered toward £80/MWh after sharp falls at the end of August caused by record wind output. By week’s end, improved nuclear supply and stable renewables anchored the market.

Key drivers:

Heysham 2-7 and Torness 1 nuclear units returned, adding ~1.2 GW of zero-carbon baseload capacity
Strong solar output on clear days reduced peak system prices
Interconnector flows balanced exports during high-wind surpluses and imports during calmer periods
Forward curve flattened, reflecting greater stability in supply outlook

Gas Market: Range-Bound with Modest Risk Premiums

Gas prices were steady, with the day-ahead contract edging back above 80p/therm by week’s end.

Key drivers:

Norwegian maintenance at major fields (including Troll) cut exports by ~100 mcm/day versus August, adding mild upward pressure
European storage at ~77% full – comfortably above seasonal averages – capped volatility and boosted confidence heading into winter
Mild weather and subdued industrial demand reduced consumption
Steady LNG send-out kept system balance intact

Bright Edge View: Calm Before the Winter Shift

This week’s market reinforces a theme we’ve seen through late summer: strong renewables, healthy storage, and consistent LNG supply are containing volatility. But with winter around the corner, modest premiums are already creeping into the market.

For businesses approaching renewal, this is a window to secure contracts while prices remain stable — before winter demand and risk premiums drive the next upward move.