The recent increase in wholesale global gas prices has had an impact on the cost of energy in many countries. The main factor driving these price increases has been the Russian invasion of Ukraine. Russia is the world’s biggest exporter of natural gas and around three-quarters of these exports have traditionally gone to Europe and Turkey.
European efforts to move away from dependence on Russian oil and gas since the war, and a simultaneous increase in demand for oil and gas from Asia, have created a supply and demand crisis. This is driving the substantial price hikes in UK households’ energy costs.
These are unprecedented times and consequently, we have seen a significant number of UK energy suppliers entering administration and exiting the market.