But it also competes with continental Europe for gas from Norway and LNG from America, meaning European demand to replenish reserves could affect British prices.
Britain’s price cap on household energy bills, which was hiked to a three-year high in October, could be raised another 16% in January, consultancy Cornwall Insight forecasts.
“At the moment, we can’t yet see an end to the volatility, and with gas stocks as low as they are, the effects of the Iran conflict could be with us for many more months,” its principal consultant Craig Lowrey said.
Moutaz Altaghlibi, senior energy economist at ABN Amro, said Europe was not facing an outright supply shortage. But he said the ongoing competition with Asia was likely to keep prices raised.