Everything you need to know about the energy crisis
Here you will find an overview to the current market, what to expect in the following weeks & months, where will the UK get their oil if we stop getting the importation from Russia & how Utility Bidder can help you.
Rated Excellent on Trustpilot
(Over 1,900 Reviews)
Can’t see the address? Enter manually
Let’s save time, can we automatically gather meter information?
? What does this mean?Does your meter number end in any of the following?
Rated Excellent on Trustpilot
(Over 1,900 Reviews)
The recent attack Russia deployed in Ukraine has shaken global commodity markets and has raised concerns about how the continued crisis could prolong Europe’s energy crisis as the West continues to place sanctions on Moscow. While the impact on the energy markets is yet to be determined, wholesale prices have risen by 30% on Thursday 24 February and are continuing to rise.
Consumers are already paying high prices for energy and fuel, with demand surging following the easing of COVID restrictions. The impact of this has caused 28 energy suppliers to cease trading by the end of 2021. The UK inflation rate is at 5.5% which is the highest it has been in 30 years. Although the UK are not heavily reliant on Russia for gas and energy, there are concerns sanctions could constrict supplies and drive-up prices worldwide. The price of UK natural gas futures soared nearly 30% on Thursday.
If Russia escalates its aggression and forces the Western response threatened by NATO leaders. Europe might well tip into recession. The United States could possibly follow, and Western leaders need to communicate the facts and prepare public opinion in their countries for higher prices and tougher times.
The conflict has already caused the oil price to jump to its highest level in more than seven years, while future gas prices doubled in just one day earlier this week. Immediately following the attacks on 24 February 2022, oil prices went above $131 per barrel to their highest level since 2014. The cost of an average full tank could increase to as much as £88.
The energy market is currently extremely volatile, and many suppliers are pulling their prices. We suggest that you secure the price you can access now for at least 1 to 2 years. For the foreseeable the energy market is going to be very unpredictable which is why it is best to secure your business energy contract now. At Utility Bidder, we don’t believe the prices are going to improve anytime soon, protect your business and secure your energy contract now. Check out our Business Insights page to keep up to date with the latest energy market news
The European Union relies on Russia for 45% its oil and gas, which of course meant that Russia benefited from sales. However, countries and companies are implementing a raft of sanctions on Russia as part of a campaign to pile on economic pressure.
However, UK only rely on Russia for 3% of their gas which is much The European Union who are much more reliant. If the conflict is prolonged and Russia reduce or even stop gas supplies via Nord Stream 1 or other pipelines, this could have a devastating impact on energy prices.
We need to consider that Russia supplies 45% of Europe’s gas, which is why it can still have a catastrophic effect on energy prices which are already skyrocketing. Russian gas is transported into Europe using a complex network of pipelines that run through Ukraine, Belarus, Poland, and Germany including Yamal and Nord Stream 1. They continue onto the rest of Western Europe and then reach the UK.
If the invasion caused damage to the supply lines, this could have disastrous effects on market volatility and a halt of European factories to assist in conserving gas.
“We must collectively cease the dependence on Russian oil and gas that for too long has given Putin his grip on western politics,” Boris Johnson stated on Thursday 24th February.
Although we only received less than 4% of our gas from Russia, a third of our gas sourced from the quickly diminishing North Sea Reserves. Another third is sourced from Norway, while 8% is received via pipelines connecting the UK to Europe or as LNG (Liquefied Natural Gas). LNG is transported using tankers usually from Qatar or the United States. Taking all of this into consideration, according to a report by the Oxford Institute of Energy Studies, that Britain is “unlikely to face a physical shortage of supplies” but we must keep in mind that the energy market is currently extremely volatile.
If you work with an award-winning third party energy broker and expert like Utility Bidder – yes you can. The energy market is changing and as we see suppliers go bust on an unprecedented scale your choice of supplier is becoming more limited. However, thanks to our experience and relationships with many energy providers we are confident that we can still save your business money in the longer term.
It only takes a couple of minutes to save £100's on your utility bills
Go Back
Let’s save time, can we automatically gather meter information?
? What does this mean?Does your meter number end in any of the following?