It’s very unlikely that you could have avoided hearing about the UK energy crisis by now. It’s also really likely that a high proportion of our readers will be impacted in some way, either directly or by the cost of living. We break down how we have got to this point, and hope to signpost you to places that can help support you this winer.
What is the ‘energy crisis’?
The energy crisis is a general term for a shortage in energy supply. The current shortage involves all fossil fuels and is impacting countries globally.
What caused it?
Initially, resources depleted following the COVID-19 pandemic as demand started to increase when industry and economy rebooted. The war in Ukraine has since deepened the issue, as energy is regularly exported by Russia.
How is it impacting us?
The varying issues and concerns about supply have caused price spikes and increases in market gas prices. It means that household energy costs have risen and could continue to do so in the months ahead, leading to fuel poverty where many families will be unable to afford to heat their homes. Businesses and factories are also facing cost increases, which is contributing to economic inflation or even redundancies as companies attempt to keep their finances above breaking point.
What is the ‘price cap’?
The energy regulator Ofgem sets the energy price cap in a bid to limit the price a supplier can charge you per unit of electricity and gas.
When will it end?
Unfortunately, there is no end in sight and prices are expected to continue to rise into 2023. The Government is reportedly making plans to support energy companies (there is little they can do about global energy resourcing), but in the meantime, it’s up to households to try to find as many ways to cushion the blow as possible. Cutting consumption sounds obvious, but is more important than ever.
What support is available?
There are a number of websites offering support and advice: