Energy crisis stemming from Ukraine war ‘cost £1k for every UK adult’
The UK’s over-reliance on gas has been blamed for pushing up bills as it emerged that the energy crisis stemming from the war in Ukraine had cost the equivalent of £1,000 for every adult.
A study by the Energy and Climate Intelligence Unit (ECIU) estimated that high wholesale gas prices since Russia’s invasion of Ukraine nearly a year ago had cost UK energy suppliers an additional £50bn to 60bn, on top of the £10bn to £20bn spent in a normal year.
The invasion spurred wholesale gas prices, which were already above historical averages, to record highs.
Household energy costs are far higher than the £1,000 extra highlighted by ECIU – which does not account for normal wholesale costs, suppliers’ margins and other charges wrapped into bills.
The International Monetary Fund said last year that British households have been the worst hit in western Europe because of the high dependence on gas. The UK uses gas for generating about 40% of its electricity and for heating 85% of its homes, which are also among the least energy-efficient in Europe.
The study estimated that, had the UK made better progress towards net zero by improving housing efficiency, producing more wind power and deploying heat pump technology a typical household could have saved up to £1,750 in 2022.
Dr Simon Cran-McGreehin, the head of analysis at ECIU, said: “As the IMF has pointed out, the energy crisis hit UK households harder than those in other western European countries because, as a nation, we’re incredibly dependent on gas. The price of gas is largely set by international markets, so the only way to protect yourself is to use less.
“The onshore wind ban has been one of the barriers to this. We’re also running behind places like Sweden, Poland and Estonia on
Read more on theguardian.com
