Two experts have warned that energy prices could rise sharply again in the near future due to the global gas markets being delicately balanced.
Michael Bradshaw, a Professor of Global Energy, and Louis Fletcher, a Research Fellow in Energy and Climate Politics, shared their opinions in an article for The Conversation. They wrote about the recent energy crisis:
“Energy bills for an average household in the UK hit £4,279 in January 2023. The government protected consumers from the very worst at a cost of £51 billion in 2022-23, but the average household lost 8% of its budget to energy costs in 2022, rising to 18% for the poorest tenth…”
Bradshaw and Fletcher write that changes in supply and demand could upset the delicate balance that has kept energy prices relatively stable since the energy crisis. They also point out that UK households are particularly exposed due to poor energy efficiency.
They cite that a transit agreement to supply 5% of Europe’s gas from Russia via Ukraine ends this year and will almost certainly not be renewed. Furthermore, a colder winter in Europe could drive up demand and put upward pressure on prices, while geopolitical tensions in the Middle East could affect supplies of liquefied natural gas.
You can protect your household from potential shocks by taking up one of the fixed tariffs currently being offered by suppliers. Xgas can also help you save energy with a modern, efficient boiler installation in Chester to replace an old inefficient boiler. Get in touch to learn more.
