Norwegian Maintenance Eases, Storage Targets Within Reach
- Professional Energy People
- Oct 13
- 6 min read
UK Energy Market Update
September 2025
Market Summary
In September, EU aggregated gas storage levels increased from around 77% at the start of the month to approximately 83% by month-end, remaining about 6 to 7 percentage points below the five-year seasonal norm. Steady injections were supported by strong LNG inflows, which averaged above seasonal levels even amid reduced Norwegian pipeline supply. Projections from the European Commission indicated that storage could reach around 86% by November if current trends persisted. Despite lagging last year’s levels, the EU remained on track to meet its 83% interim and flexible 90% storage targets between October and December, keeping near-term supply risks limited.
Maintenance across the Norwegian Continental Shelf continued to constrain UK gas supply throughout September, with planned and unplanned outages at Nyhamna, Aasta Hansteen, Troll, Kollsnes, Skarv and Asgard limiting flows through the Langeled pipeline. Peak restrictions early in the month saw over 130 mcm/day offline, keeping the UK system short at times and reinforcing reliance on LNG and other import routes. Gradual ramp-ups through the third week restored Norwegian flows, with pipeline nominations to Great Britain reaching near five-year highs by late September as the major seasonal maintenance program concluded. Despite lingering minor unplanned outages at Nyhamna, Troll and Kollsnes, the easing of restrictions helped stabilise supply and reduce near-term price pressures.
French nuclear generation remained robust despite strikes on September 3rd and 18th reducing output by up to 2.7 GW and a brief shutdown of the Paluel-4 reactor due to a jellyfish swarm. EDF managed outages effectively, maintaining most of France’s electricity supply and supporting exports. For the UK, steady French nuclear flows helped stabilise cross-channel electricity, limiting price pressure amid tighter European supply.
The European Union is set to accelerate its phase-out of Russian fossil fuels, targeting an end to imports of Russian gas, LNG, and oil by 2027, a year earlier than planned. Part of the bloc’s 19th sanctions package and following US pressure, the measures would target Russia’s shadow tanker fleet, cryptocurrency channels, and third-country refineries, while banning short-term contracts from next year. Despite expected objections from Hungary and Slovakia, the EU plans to advance legal proposals alongside initiatives to improve energy infrastructure, integrate markets, and strengthen supply security. The accelerated exit aims to cut Russia’s fuel revenues, though it may increase Europe’s reliance on US LNG and raise regional energy security concerns.
The UK and the US are set to sign a nuclear energy partnership to accelerate investment and development of new plants. The agreement will support the UK’s expansion of nuclear capacity, including the £14 billion Sizewell C project and up to 12 advanced modular reactors developed by Centrica and US firm X-Energy. An additional £11 billion initiative to build SMR-powered data centres at the former Cottam coal site is planned with backing from Holtec International, EDF and Tritax. The collaboration will also streamline nuclear regulation, allowing safety assessments approved in one country to support reviews in the other, with the aim of boosting energy security, reducing costs, and ushering in a new era of nuclear growth in the UK.
Net Zero News
British households are embracing green technology primarily to save money rather than to tackle climate change. Hive’s 2025 Home Report shows that reducing energy bills has become the main motivation for adopting low-carbon solutions such as solar panels, smart thermostats, EV chargers, and heat pumps.
Ofgem has advanced 77 projects to the final stage of a government-backed “super battery” initiative designed to prevent renewable energy waste and unlock billions of pounds in new investment.
Two carbon capture projects in North Wales and the North West have gained final government approval, creating 500 skilled jobs and marking a significant step forward in the UK’s net zero goals.
Europe has reduced emissions, improved air quality, and expanded renewable energy, yet its environment remains in serious jeopardy, according to a stark new report. The European Environment Agency (EEA) has released its most comprehensive assessment of the continent’s natural ecosystems, painting a bleak picture of their overall health.
Five months after a major blackout left Spain and Portugal in darkness, a new report warns that Europe could face more such crises without significant investment in its power grids. The Institute for Energy Economics and Financial Analysis (IEEFA) said the April outage, which cut power across parts of the Iberian Peninsula for over six hours, revealed the growing vulnerability of Europe’s electricity networks amid increasing renewable integration.
The Centre for Net Zero (CNZ) has called on the government to prioritise renewable microgrids instead of nuclear small modular reactors (SMRs), arguing they offer a faster and more cost-effective way to meet rising data centre energy demand.
Renewables are on track to surpass coal as the world’s largest source of electricity as soon as late this year or early 2026. According to the IEA, this milestone comes amid one of the fastest periods of sustained growth in global power demand in more than a decade.
Nuclear power generated more electricity in 2024 than ever before, surpassing the previous record from 2006 and reinforcing its role in the global clean energy mix. The World Nuclear Performance Report 2025 shows that reactors worldwide produced 2,667 terawatt hours, exceeding the former 2,660 TWh record.
Electricity & Gas Prices
UK wholesale gas and electricity prices in September 2025 showed mixed trends, shaped by supply dynamics and weather patterns. Early in the month, prices remained relatively steady, supported by stable gas flows and nuclear output from France, while robust wind generation occasionally created oversupply, particularly mid-month, which pushed power prices down. Industrial factors, including Norwegian maintenance and constrained LNG shipments, provided some upward pressure, while warmer weather reduced gas-fired demand, limiting bullish momentum. By the end of September, prices had rebounded, reflecting tighter gas margins and ongoing geopolitical uncertainties, though overall markets remained relatively stable with sufficient supply for the approaching winter.
Flexible Purchasing
EPEX Price
Some of our flexible purchasing customers are buying on EPEX, a European auction for power. Because they auction every hour of each day, customers get the “market average” price as opposed to a fixed-term contract over e.g. a 12-month period. Being on this product means that you will pay the average of each day for the month and once the market falls the price will follow.
The EPEX price finished the month with an average of 6.64 p/kWh (commodity). With the non-commodity added to this, the overall rate will be around 19.14 p/kWh+.
Carbon Prices
In September 2025, EUA carbon prices continued their upward trajectory, averaging around €75.8/tonne, up from August’s average of €71.9.
The rally was supported by stronger gas and power markets feeding into compliance demand, while expectations of tighter supply from 2026 onward under reduced free allocations and ETS reforms added structural support. At the same time, sentiment remained tempered by concerns over industrial weakness and macro risks, which limited how far prices could run.
Oil Market
5th - Oil prices fell amid expectations of an emerging supply glut, with OPEC+ expected to approve higher production at its upcoming meeting. Rising US crude inventories have also added to worries over softening demand.
9th - Oil prices extended gains, supported by a smaller-than-expected OPEC+ production increase, continued stockpiling by China, and concerns over potential new sanctions on Russia.
15th - Oil prices edged higher as traders weighed the impact of continued Ukrainian drone strikes on key Russian energy facilities, despite ongoing concerns about weak demand growth.
19th - Oil prices fell as concerns over fuel demand outweighed expectations that the U.S. Federal Reserve’s first interest rate cut of the year would stimulate consumption, with lower borrowing costs normally supporting higher oil demand.
25th - Oil prices slipped as slow demand growth in the United States weighed on the market, amid rising supply from OPEC+ and continued disruptions to Russian exports caused by Ukrainian attacks on energy infrastructure.
30th – Oil prices fell 3.1% day-on-day, marking its largest drop since 1st August, after reports suggested OPEC+ ministers are likely to push for higher production from November.
Get in Touch
Our team are independent energy advisors who provide competitive gas, electricity, and water prices for commercial businesses across the region.
Our complete energy management service also includes helping businesses to identify potential savings through energy audits, tax levy rebates and grant funding. We can also help you plan for Net Zero and achieve compliance with our in-house ESOS assessment service.
Contact us for a free initial consultation about your business energy.
0114 327 2645
Comments