The gas crunch: ‘there could be worse to come’

High gas prices are creating chaos in energy markets – and Britain is particularly vulnerable

The UK’s gas supplies are reliant on Russian pipelines
The UK’s gas supplies are reliant on Russian pipelines
(Image credit: Natalia Kolesnikova/AFP via Getty Images)

Soaring wholesale gas and electricity prices over the past six months have left millions of UK households “facing the biggest rises in their energy bills in a decade”, said Emily Gosden in The Times. This week, matters came to a head with a record spike in prices. The benchmark “month-ahead” UK NBP gas price jumped almost 16%, to a record 192p per therm on Tuesday. “Day-ahead” prices are also closing in on the 230p per therm record set during the “Beast from the East” cold snap in February 2018. The problem isn’t confined to Britain. Prices across Europe have also been jumping – provoking protests in Spain last week. We are seeing a global gas crunch as economic recovery from the pandemic accelerates demand. “There could be worse to come.” What worries experts is that it is only September, making the current spike very unusual. Winter is coming, and there’s not much margin for error.

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