Soaring wholesale energy costs have triggered a national crisis both in the UK and Europe.
Not only are these unprecedented energy costs likely to undermine the green revolution if prices don’t return to more affordable levels…
But the energy costs we see today pose a very real threat to businesses.
In fact, we have calculated the impact of the increase in wholesale energy costs on UK industry.
And the bill is eye-wateringly high.
In this blog, you will learn how hard organisations may be hit and how you can protect your business against the soaring cost of gas and electricity.
Plus, we’ll give you clarity on some of the most important questions.
Let’s get started.
The weight of evidence would suggest that energy prices will remain at - or near - all-time highs in 2022.
Without a doubt, geopolitical tensions bring a tricky dimension to the energy industry (more on this to come).
It is a confluence of factors that has led to today's unprecedented cost of wholesale energy.
Indeed, as I write this (15/03/22) the 2022 baseload power price is at £268/MWh.
This is 665.7% higher than the cost of power in 2020.
And the gas price is trading at 275 pence per therm.
This is 953.2% more than the cost of gas in 2020.
And it is £18.7bn more than the cost in 2020.