Ukraine War-induced energy crisis incurs costs over $1k per UK adult

The United Kingdom’s excessive use of biogas has reportedly been linked with the significant rise in bills in the aftermath of the Ukraine war. The energy crisis stemming from the war has resulted in costs equivalent to over USD 1,209 per adult in the UK.

As per a report from the Energy and Climate Intelligence Unit, due to the invasion of Ukraine by Russia in 2022, the wholesale price of gas has risen considerably, creating an additional burden for suppliers of almost USD 60 billion to USD 72 billion, over the regular spending of USD 12 billion to USD 24 billion.

The prices of household energy are higher than the ECIU’s USD 1,209 estimate, which does not include regular wholesale costs, suppliers’ margins, and other bill charges. In 2022, an IMF study highlighted that had the UK accelerated its net-zero target by producing more wind and solar power as well as improving housing efficiency, the nation would have saved up to USD 2,115 in 2022.

The head of analysis at ECIU, Dr. Simon Cran-McGreehin, has stated that the UK has been using biogas in excess, which has resulted in a more drastic impact of the energy crisis on UK households than other western European nations. He also added that the country is falling behind regions like Estonia, Poland, and Sweden in installing electric heat pumps. Since gas prices are determined largely by international markets, decreasing dependency on gas is one of the only ways for the UK to safeguard against such impacts, he claimed.

The Chief Executive of NatWest, Alison Rose, along with the net zero minister Lord Callanan, was recently appointed as the joint chairperson of the government’s energy efficiency task force. She will be required to prepare a strategy to ensure that the energy consumption of the nation reduces by 15% in the next seven years.

Source Credit: https://www.theguardian.com/business/2023/feb/21/energy-crisis-ukraine-war-uk-cost-gas