The average wholesale electricity price in September 2025 in the United Kingdom is forecast to amount to*******British pounds per megawatt-hour, a decrease from the previous month. A record high was reached in August 2022 when day-ahead baseload contracts averaged ***** British pounds per megawatt-hour. Electricity price stabilization in Europe Electricity prices increased in 2024 compared to the previous year, when prices stabilized after the energy supply shortage. Price spikes were driven by the growing wholesale prices of natural gas and coal worldwide, which are among the main sources of power in the region.

… and in the United Kingdom? The United Kingdom was one of the countries with the highest electricity prices worldwide during the energy crisis. Since then, prices have been stabilizing, almost to pre-energy crisis levels. The use of nuclear, wind, and bioenergy for electricity generation has been increasing recently. The fuel types are an alternative to fossil fuels and are part of the country's power generation plans going into the future.

UK Electricity decreased 23.22 GBP/MWh or 22.66% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for the United Kingdom Electricity Price.

Wholesale electricity prices in the United Kingdom hit a record-high in 2022, reaching 21.7 British pence per kilowatt-hour that year. Projections indicate that prices are bound to decrease steadily in the next few years, falling under five pence per kilowatt-hour by 2030.

Daily data showing the System Price of electricity, and rolling seven-day average, in Great Britain. These are official statistics in development. Source: Elexon.

In 2024, natural gas prices for UK businesses with an annual consumption greater than 27,778 megawatt hours stood at 4.49 pence per kilowatt-hour, while for industries with lower annual consumption, prices were 5.64 pence per kilowatt-hour.

Residential consumers of natural gas in the United Kingdom paid an average of 8.8 U.S. dollar cents per kilowatt hour in December 2024. This was roughly one U.S. dollar cent lower than a year previous. The residential and commercial sectors are the largest consumers of natural gas in the UK.

The Electricity Supply industry has developed considerably since its liberalisation in 1999. Following a period in which the Big Six suppliers dominated, energy regulator Ofgem endeavoured to introduce greater competition to the market as part of attempts to drive down energy bills. Major mergers and acquisitions effectively brought the dominance of the former Big Six suppliers to an end at the end of 2019-20. Along with weakening electricity consumption, swelling competition has applied further pressure on revenue in recent years. Electricity suppliers' revenue is slated to climb at a compound annual rate of 6.2% to reach £52.1 billion over the five years through 2025-26. With suppliers bound by the energy price cap, soaring wholesale prices led to widening operating losses in 2021-22, albeit with a modest revenue recovery from pandemic-induced lows. A renewed spike in wholesale prices led to a continued wave of insolvencies among energy suppliers going into 2022-23, with 31 suppliers falling victim to the energy crisis. Soaring non-domestic energy bills and significant hikes to the SVT price cap spurred significant revenue growth in 2022-23, while the transfer of customer accounts from failed suppliers reinstated the dominance of major suppliers. The introduction of the Energy Price Guarantee (EPG) and support for business energy customers prevented energy prices from spiralling out of control going into 2023-24. A faster-than-anticipated drop in wholesale electricity prices has since eased pressure on operating profit and caused revenue to come-down. However, wholesale prices and energy bills remain significantly above levels seen prior to the energy crisis. Revenue is forecast to decline by 4.5% in the current year. Revenue is forecast to creep up at a compound annual rate of 0.1% over the five years through 2030-31, reaching £52.3 billion. Prices will remain elevated in the medium term as concerns surrounding supplies of Russian fossil fuels into Europe inflate wholesale costs. Wholesale prices are set to stabilise in the long term, spurring tariff reductions. The continued drop in electricity consumption is also set to limit growth prospects in the coming years.

The residential and commercial sector accounted for most of the natural gas consumption in the United Kingdom from 2018 to 2024. The residential and commercial sector's natural gas consumption increased from an estimated 41 billion cubic meters in 2023 to an estimated 42 billion cubic meters in 2024. Meanwhile, the power generation sector was ranked second, with a natural gas consumption of an estimated 13.11 billion cubic meters in 2024.

UK Gas fell to 78.60 GBp/thm on October 27, 2025, down 2.37% from the previous day. Over the past month, UK Gas's price has fallen 6.23%, and is down 26.29% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. UK Natural Gas - values, historical data, forecasts and news - updated on October of 2025.

Electricity prices in Europe are expected to remain volatile through 2025, with Italy projected to have some of the highest rates among major European economies. This trend reflects the ongoing challenges in the energy sector, including the transition to renewable sources and the impact of geopolitical events on supply chains. Despite efforts to stabilize the market, prices still have not returned to pre-pandemic levels, such as in countries like Italy, where prices are forecast to reach ****** euros per megawatt hour in August 2025. Natural gas futures shaping electricity costs The electricity market's future trajectory is closely tied to natural gas prices, a key component in power generation. Dutch TTF gas futures, a benchmark for European natural gas prices, are projected to be ***** euros per megawatt hour in July 2025. The reduced output from the Groningen gas field and increased reliance on imports further complicate the pricing landscape, potentially contributing to higher electricity costs in countries like Italy. Regional disparities and global market influences While European electricity prices remain high, significant regional differences persist. For instance, natural gas prices in the United States are expected to be roughly one-third of those in Europe by March 2025, at **** U.S. dollars per million British thermal units. This stark contrast highlights the impact of domestic production capabilities on global natural gas prices. Europe's greater reliance on imports, particularly in the aftermath of geopolitical tensions and the shift away from Russian gas, continues to keep prices elevated compared to more self-sufficient markets. As a result, countries like Italy may face sustained pressure on electricity prices due to their position within the broader European energy market. As of August 2025, electricity prices in Italy have decreased to ****** euros per megawatt hour, reflecting ongoing volatility in the market.

The average gas price in Great Britain in July 2025 was 81.16 British pence per therm. This was 13 pence lower than the same month the year prior and follows a trend of increasing gas prices. Energy prices in the UK Energy prices in the UK have been exceptionally volatile throughout the 2020s. Multiple factors, such as a lack of gas storage availability and the large share of gas in heating, have exacerbated the supply issue in the UK that followed the Russia-Ukraine war. This has also led to many smaller suppliers announcing bankruptcy, while an upped price cap threatened the energy security of numerous households. The United Kingdom has some of the highest household electricity prices worldwide. How is gas used in the UK? According to a 2023 survey conducted by the UK Department for Energy Security and Net Zero, 58 percent of respondents used gas as a heating method during the winter months. On average, household expenditure on energy from gas in the UK stood at some 24.9 billion British pounds in 2023, double the amount spent just two years prior.

The electricity delivery process has experienced a major shift in recent years, driven by a push to reduce emissions. Governments across Europe are actively moving away from conventional sources of electricity generation, leading to a decline in the continent's dependency on fossil fuels. According to the International Energy Agency (IEA), renewables accounted for 41.7% of electricity generation in Europe in 2022, up from 32.9% in 2017. The rise of renewables has spurred an influx of renewable generators and necessitated increased investment in electricity networks. This has lifted revenue for transmission and distribution network operators. Revenue is forecast to rise at a compound annual rate of 8.7% over the five years through 2025, reaching €2.8 billion. Falling wholesale prices and a reduction in overall electricity consumption spurred a drop in revenue during the pandemic. Excess demand for natural gas as economies loosened pandemic-related restrictions spurred a strong rebound in wholesale electricity prices in 2021, translating to a jump in revenue. Wholesale prices recorded a renewed spike following Russia’s invasion of Ukraine, spurring a surge in revenue generated by electricity producers and suppliers. Renewable generators were able to rake in extra profit from electricity sold to wholesale markets at inflated prices, counterbalancing a significant rise in costs for fossil fuel generators and electricity suppliers. Wholesale prices have since come down as Europe has diversified its fuel mix away from Russian gas. Revenue is forecast to decline by 5.1% in the current year. Revenue is forecast to increase at a compound annual rate of 0.3% over the five years through 2030 to €2.9 billion. The revised Renewable Energy Directive of the EU has set a goal for 69% of electricity to be generated from renewables by 2030. Electricity generators will continue expanding their renewables capacity, while investment in upgrading the electricity network to accommodate the rapid shift to renewables will boost income for transmission and distribution network operators. Rising renewable electricity generation will place downward pressure on wholesale prices, though the electrification of heat and transport is set to spur an uptick in demand for electricity across the continent.

This dataset provides values for ELECTRICITY PRICE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Snapshot img

Electricity Trading Market Size 2025-2029

The electricity trading market size is forecast to increase by USD 123.5 billion at a CAGR of 6.5% between 2024 and 2029.

The market is witnessing significant growth due to several key trends. The integration of renewable energy sources, such as solar panels and wind turbines, into the grid is a major driver. Energy storage systems are increasingly being adopted to ensure a stable power supply from these intermittent sources. Concurrently, the adoption of energy storage systems addresses key challenges like intermittency, enabling better integration of renewable sources, and bolstering grid resilience. Self-generation of electricity by consumers through microgrids is also gaining popularity, allowing them to sell excess power back to the grid. The entry of new players and collaborations among existing ones are further fueling market growth. These trends reflect the shift towards clean energy and the need for a more decentralized and efficient electricity system.

What will be the Size of the Electricity Trading Market During the Forecast Period?

Request Free Sample

The market, a critical component of the global energy industry, functions as a dynamic interplay between wholesale energy markets and traditional financial markets. As a commodity, electricity is bought and sold through various trading mechanisms, including equities, bonds, and real-time auctions. The market's size and direction are influenced by numerous factors, such as power station generation data, system operator demands, and consumer usage patterns. Participants in the market include power station owners, system operators, consumers, and ancillary service providers. Ancillary services, like frequency regulation and spinning reserves, help maintain grid stability. Market design and news reports shape the market's evolution, with initiatives like the European Green Paper and the Lisbon Strategy influencing the industry's direction towards increased sustainability and competition.
Short-term trading, through power purchase agreements and power distribution contracts, plays a significant role in the market's real-time dynamics. Power generation and power distribution are intricately linked, with the former influencing the availability and price of electricity, and the latter affecting demand patterns. Overall, the market is a complex, ever-evolving system that requires a deep understanding of both energy market fundamentals and financial market dynamics.

How is this Electricity Trading Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Day-ahead trading
  Intraday trading


Application

  Industrial
  Commercial
  Residential


Source

  Non-renewable energy
  Renewable energy


Geography

  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    India
    Japan
    South Korea


  North America

    US


  South America



  Middle East and Africa

By Type Insights

The day-ahead trading segment is estimated to witness significant growth during the forecast period.

Day-ahead trading refers to the voluntary, financially binding forward electricity trading that occurs in exchanges such as the European Power Exchange (EPEX Spot) and Energy Exchange Austria (EXAA), as well as through bilateral contracts. This process involves sellers and buyers agreeing on the required volume of electricity for the next day, resulting in a schedule for everyday intervals. However, this schedule is subject to network security constraints and adjustments for real-time conditions and actual electricity supply and demand. Market operators, including ISOs and RTOs, oversee these markets and ensure grid reliability through balancing and ancillary services. Traders, including utilities, energy providers, and professional and institutional traders, participate in these markets to manage price risk, hedge against price volatility, and optimize profitability.

Key factors influencing electricity prices include weather conditions, fuel prices, availability, construction costs, and physical factors. Renewable energy sources, such as wind and solar power, also play a growing role in these markets, with the use of Renewable Energy Certificates and net metering providing consumer protection and incentives for homeowners and sustainable homes. Electricity trading encompasses power generators, power suppliers, consumers, and system operators, with contracts, generation data, and power station dispatch governed by market rules and regulations.

Get a glance at the Electricity Trading Industry report of share of various segments Request Free Sample

The day-ahead trading

Greater awareness about the effects of climate change has driven an aggressive decarbonising strategy spearheaded by renewables. Government targets and incentives encourage major investment in renewable assets among UK energy giants. Technology developments have boosted potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. According to the Department for Energy Security and Net Zero, the share of electricity generated by major power producers from renewables surged from 34.5% in 2019-20 to 42.4% in 2023-24. Renewable generators' revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2024-25 to reach £14.5 billion. Growth has been underpinned by the UK’s rapid expansion of renewable generating capacity. Offshore wind has recorded the most significant expansion in generation volumes as investors look to take advantage of technological advancements to tap into the UK's abundant natural resources. Soaring wholesale prices have added to revenue growth since H2 2021-22; however, operators of renewable generation assets that operate under a Contract for Difference (CfD) have been required to pay back the difference between wholesale prices and CfD strike prices, limiting the impact of a surge in wholesale prices on operating profit. Inflation-linked increases to fixed price mechanisms have also boosted growth. Revenue is forecast to jump by 11.4% in 2024-25. Revenue is forecast to swell at a compound annual rate of 11.1% over the five years through 2029-30 to reach £24.6 billion. The UK already has a strong pipeline of renewable assets set for delivery in the coming years, with ongoing government support likely to fuel further investment. In the short term, increased capacity is set against a backdrop of falling strike prices, though the extent of capacity expansion should support further growth. Hikes in strike prices secured in the most recent CfD allocation round will also boost growth in the longer term. Rising battery storage capacity should help support growth in renewables' share of the UK energy mix by reducing barriers associated with intermittent supplies of renewable power.

This dataset provides values for ELECTRICITY PRICE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The Gas Utilities industry in Europe has been anything but steady recently. The Russia-Ukraine war has rocked the whole supply chain, with Russia tightening its gas supply, Europe hustling to cut its reliance on Russian gas and gas prices shooting up following the initial invasion. Amid unprecedented price increases and threats to the supply of gas into Europe, European governments have been forced to step in to support customers and protect energy supplies. All that aside, the industry remains threatened by a long-term decline in gas consumption and accelerating efforts to transition to renewable sources of energy. Revenue is forecast to climb at a compound annual rate of 1.4% over the five years through 2025, reaching €401.9 billion. This growth is almost solely attributable to a spike in revenue recorded during 2022, which followed a recovery from pandemic-induced lows during 2021, when prices and demand recovered as global economic activity rebounded. Russia’s invasion of Ukraine kicked off a period of significant disruption in energy markets, with a surge in gas prices leading to record revenue and profitability for gas manufacturers while causing substantial losses for gas suppliers. Wholesale prices have eased from record highs as European governments have reduced reliance on Russian gas. At the same time, a drop in demand for gas has also contributed to a revenue contraction since the height of the energy crisis. Revenue is set to decline by 3.9% in 2025. Revenue is forecast to increase at a compound annual rate of 1% to €422.2 billion over the five years through 2030. European markets are set to pursue a green revolution in the coming years, with investment in renewable energy sources gathering pace as European governments strive towards emissions reduction targets. Investment in green alternatives to natural gas is likely to lead to a fall in demand, with plans set out by the European Commission to at least triple solar thermal capacity by 2030, displacing the consumption of nine billion cubic metres of gas annually. Gas prices are set to continue to stabilise in the short term, before falling rapidly as renewable generation capacity rises.