Energy Roundup: June 2026
Welcome to the latest issue of our Energy Roundup. Each quarter, we’ll bring you all the latest news, views and insights to help you navigate the ever-changing complexities of the energy industry.
Energy Overview
UK power and gas markets
UK power and gas markets have been heavily influenced by geopolitical developments in recent months. Escalation in the Middle East, combined with disruption to the Strait of Hormuz - a key route for around 20% of global LNG supply has created significant uncertainty in global energy markets.
This was compounded by an outage at Qatar’s Ras Laffan complex, one of the world’s largest LNG facilities, which further tightened global supply. As a result, UK gas prices rose sharply, more than doubling at the peak, amid concerns around the scale and duration of disruption.
More recently, market sentiment has eased. Announcements of a potential US–Iran agreement, along with early signs of LNG flows resuming through the Strait of Hormuz, have helped restore some confidence. LNG tankers have begun returning to the region, and Qatar has indicated that some production could be restored in the coming weeks. However, a full recovery is expected to take longer, meaning supply may remain constrained for some time.
In Europe, the situation remains challenging. Gas storage levels started the injection season lower than usual following winter withdrawals and are currently around 47%, below typical seasonal levels. This has made replenishing storage more difficult, particularly during the recent period of reduced LNG availability.
Looking ahead, the pace at which global LNG supply returns, particularly from Qatar - will play a key role in price movements. At the same time, increasing demand from Asia over the summer could add further competition for LNG cargoes.
Overall, while some immediate supply concerns have eased, the market remains tight. This means prices may continue to be volatile in the lead-up to winter, and ongoing geopolitical risks will remain an important factor to watch.
Power Market Update Webinar
Join James Chaplin, Senior Manager of Curve Trading, at our next power market updates webinar, to navigate current developments in the UK power market and get an outlook on future prices.
Wednesday 29 July at 11am
Register here
A brief outlook of non-energy costs
Since the start of the Middle East conflict in early March, the National Energy System Operator (NESO) have been forecasting they may need to re-open Balancing Service Use of System (BSUoS) charges set for the rest of this charging year. Higher gas prices have led to higher BSUoS costs incurred by the NESO, because the majority of these costs come from paying gas generators to increase their electricity output to meet demand, To do this the generators need to be compensated for buying the extra gas they burn. The higher wholesale prices are the more these generators need to charge and the higher BSUoS costs are.
NESO set seasonal tariffs for suppliers and consumers to pay each December for the following summer and winter, meaning their revenue is fixed for those 12 months. The cost of paying generators to turn up and down output is variable every half an hour though, depending on the cost each generator will need to charge. If variable costs are higher than the fixed revenue, NESO start to lose money, and if they go beyond £300m negative cash balance then they can increase the BSUoS charges to suppliers to recover their shortfall. Whether and when this could happen is very uncertain depending on gas prices and weather conditions, but NESO has been forecasting they could reach this point around September or October.
In May, NESO also published its initial view of Transmission network use of System (TNUoS) tariffs for the 2027/28 charging year, as well as a light revenue forecast for the following 4 years. The Apr-27 charges are forecasted to be a volumetric equivalent of £30.70/MWh (although almost all recovered via standing charges), which represents a 20-25% year-on-year increase from the current Apr-26 charges, but this is slightly lower than previous forecasted by NESO. Further increases are still expected in alter years, with potentially 10-20% increases each year to March 2031. These increases are part of the new RIIO-ET3 price control from Apr 2026 where significant extra spend is required to invest in transmission network infrastructure to transport electricity from increased generation in different locations around the country.
Monitor Report Non-Energy Costs Explained
Join our Wholesale Market Services experts as they share more detailed updates on how the current non-energy costs impact businesses - Taken from our quarterly report, Monitor.
Wednesday 16 September at 11am
Register here
Energy in the News
TPI market review – chance to have your say
Following the government’s announced intention to appoint Ofgem as the regulator of Third-Party Intermediaries (TPIs) in the retail energy market, Ofgem have launched a market review of TPIs. The first step of that review is a Call for Input, Ofgem stated “its primary purpose is to gather stakeholder views and evidence on how the TPI sector currently operates, where it is delivering positive outcomes, and where there may be risks of harm to energy consumers”.
Ofgem are seeking views from a wide range of stakeholders, including TPIs, energy suppliers, consumer groups, trade bodies and consumers.
The Call for Input, linked below, is open until 16th July 2026:
https://www.ofgem.gov.uk/call-for-input/third-party-intermediaries-tpis-market-review
Ofgem plan to analyse the responses, alongside other quantitative and qualitative information gathered from energy suppliers and TPIs across this summer and autumn and publish their report in Winter 26/27 setting out findings and potential next steps for policy and regulatory development.
Review into cost of public EV charging
Government have announced the scope of their review into the cost of public EV charging. Although primarily focused on individuals who need to charge their cars when not at home, government have also noted that they will consider the impacts of any possible options on other energy consumers and on the costs for EV fleet operators that charge at private depots.
Government plan to publish their report in Autumn 2026 - we'll let you know when we hear more.
Full terms of reference for the review can be found here: https://www.gov.uk/government/publications/cost-of-public-ev-charging-review-terms-of-reference
AI Growth Zones
As part of the wider ’Delivering AI Growth Zones’ policy package, announced in November 2025, alongside planning reforms, Government announced plans to introduce an electricity bill discount for AI data centres to incentivise projects to build in strategic areas in the UK.
EDF understands the Government is aiming to launch the bill discount scheme from April 2027 and is planning to consult on the scheme this July, keep an eye out for this one, in case you’d like to respond to the public consultation.
The GHG Protocol: What’s changing and why 24/7 matching matters
Read the full article to explore what 24/7 matching is, why it matters, and how your business can get ahead.
A view from the EDF Sustainability team
5 things businesses need to know about Biodiversity Net Gain
Biodiversity Net Gain (BNG) is quickly becoming a key consideration for businesses, shaping how developments are planned, delivered and assessed, not just as a regulatory requirement, but as a strategic priority. With mandatory 10% net gain now in force for most developments, and wider scope coming in 2026, organisations need to understand what it means, who it affects, and how it can be delivered. From new cost and risk considerations to opportunities for smarter design and investment, BNG is already influencing real-world decisions.
Read the full article to understand what BNG means for your projects and how to stay ahead.
Look out for your next edition of the Energy Roundup in September!
Related articles
