What has triggered the energy market crisis?
The UK’s wholesale energy markets have reached record highs in recent weeks. The trouble stems from a global surge in demand for gas following a cold winter that left gas storage facilities depleted, plus a rebound in post-lockdown energy demand across Asia. A race to refill gas stores before the return of colder temperatures has now caused market prices to surge.
The global gas grab is a major concern because half of the UK’s electricity is generated in gas-fired power plants. There has also been a higher than normal demand for gas power in recent months following a series of nuclear reactor outages and the recent shutdown of a major power cable that brings in electricity from France.
The UK has also had one of its least windy summers since 1961, meaning wind power has been low. Experts fear the situation will become worse as colder temperatures draw in.
What does it mean for my energy bills?