Energy Market Report – May 2026
Time-bound market update. Data and assessments reflect market conditions when the report was published. UK / Europe.
Open ERA Group's original report ↗At the time of writing (25 May 2026), the report described a continuing stalemate in the Strait of Hormuz after numerous rounds of negotiation, and stated that both sides agreed the strait would remain closed until a final agreement was signed, with no timeline given.
UK gas storage was reported at 34% full, down a further 7 points over the month, while the EU — entering its injection season — stood at 37%, some 13 points below the five-year average, against a target of 80% by November. Both the UK and EU were described as heavily reliant on North American LNG.
The report also covered UK policy: the British Industrial Competitiveness Scheme (BICS) due to commence 1 April 2027 (backdated to 1 April 2026) with expected benefits of around 4p/kWh, and the ESOS Phase 4 submission date of 5 December 2027.
Key takeaways
- The Strait of Hormuz was reported as remaining closed pending a final agreement.
- UK gas storage at 34% full; EU at 37%, 13 points below the five-year average.
- Reliance on North American LNG left supply and pricing exposed to disruption.
- Solar typically contributed between 15% and 22% of daily UK demand.
- BICS and ESOS Phase 4 were flagged as upcoming regulatory items to prepare for.
Relevant for
CFO · Procurement · Energy manager
- Source
- ERA Group
- Language
- English
- Length
- 1 page
- Date
- 25 May 2026
- Market
- UK / Europe
Original material from ERA Group. JMF Europe provides a short summary here.