What caused the UK’s energy crisis?

Energy industryWhat caused the UK’s energy crisis?From moves by China and Russia to changes in UK regulation, these are the factors that created the perfect storm Jillian AmbroseTue 21 Sep 2021 01.00 EDTThe UK’s energy system has been plunged into chaos by a perfect storm of market forces which threatens to rip through the economy from home energy suppliers to heavy industry, and from factories to farmers.This has stoked fears that a wave of energy suppliers will collapse, and that households will be saddled with unaffordable bills. As the colder weather draws in, these are the factors shaping the energy crisis.China’s post-Covid bounce backChina’s appetite for energy is always a key driver of global market prices. In 2021 its post-Covid economic ramp-up has coincided with an uptick in demand across Asia and Europe too.As economies begin to recover from the fallout of the pandemic, countries across the northern hemisphere, which experienced a long, cold winter in 2020-21 that depleted gas storage levels, have been left scrabbling to secure supplies.Gas prices in the UK have more than quadrupled over the last year to highs of 180 pence per therm, from around 40p/th this time last year. In the last month alone, prices have climbed by 70%.Market experts at S&P Global Platts said earlier this year that China’s demand for gas was likely to rise ​​to 360 billion cubic metres (Bcm) this year, up 8.4% from an estimated 332 Bcm in 2020. To …

20/09/2021