It Never Rains But it Pours: How Energy Crisis, Brexit & COVID May Backfire on UK This Christmas | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

It Never Rains But it Pours: How Energy Crisis, Brexit & COVID May Backfire on UK This Christmas

The European energy crisis has taken its toll on the UK: the Bank of England warned last week that surging energy bills would push already soaring inflation above 4 percent this winter. The problem stems from a spike in demand for gas ahead of the cold weather. Will the BoJo government manage to successfully tackle the energy crisis by Christmas?

The unusually cold winter of 2020-2021 left European gas storage levels at their lowest for at least a decade, triggering a fierce race for hydrocarbons. At the same time, Asia is stepping up demand for natural gas as the continent witnesses an economic rebound after COVID lockdowns. As a result, wholesale gas prices in the UK have soared by a whopping 250 percent since the beginning of this year, including a 70 percent hike in August, according to the Oil & Gas UK (OGUK) trade association.

Skyrocketing gas prices have already knocked several British energy suppliers out of business and prompted concerns of potential food shortages in British supermarkets ahead of Christmas. However, UK Prime Minister Boris Johnson asserted to Sky News last week that Britain's energy crisis is a "short-term problem" and that he does not think there will be disruption to food supplies during the winter holidays.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA