It is no secret that now the UK is seeing a high level of volatility within the energy market mainly due to the Russian invasion of Ukraine. Although less than 1% of the UK’s gas supply is imported from Russia, we are still seeing an effect on our energy prices. This is because Russia supplies a lot of gas around the world therefore the Russian invasion of Ukraine has caused a strain on the energy market around the world which in turn has led to energy price rises in the UK.
Due to ongoing conflict, The UK government has put sanctions on Russia including some of their energy giants. This will stop them from being able to issue debt or equity in the UK.
This might seem like it would do more harm to the UK’s ongoing energy crisis, however, this is not the case. The government has stated that the UK is not dependent on the Russian gas supply and due to our diverse gas and electricity supply, households and businesses should still get the energy they need.
The reason for the current energy crisis is due to wholesale market prices rising around the world which is causing a rise in the price of energy that is being bought by UK suppliers. This is causing a strain on suppliers as the cost for energy is higher than what they are making from energy customers.
How can we avoid this issue?
Since issues have begun with Russia, people are questioning whether this issue would be so prominent if the UK wasn’t so reliant on gas from other countries. Many people are calling for us to be more reliable on our own energy rather than on imports from other countries across the UK.
It has been argued that if the UK had a better storage capacity for gas, then we would not need to be so reliant on imports from other countries. A larger storage capacity would help in situations like these as it would mean we would have our own gas to rely on and wouldn’t be as affected by any price shocks when the global market changes.
Although there are lots of people in favor of our country increasing their own oil supply, this will not help in the long run to reduce emissions.
What does this mean for business energy?
This might sound worrying for your business, especially as most business production is really on a high energy supply. However the energy supply in the country is not being threatened since the business energy bill crisis is due to high global prices and not the security of supply. This means that you will still be able to run your business as normal without having to worry about any supply issues for this reason.
Due to changes within the market, it is more important to be careful with your next steps when it comes to reviewing and deciding what to do with gas and electricity contracts. If you are concerned with rising prices and want to reduce them, then please get in touch today to see how our energy consultants can help you.
Here at Resolve Energy, we make sure that your business is at the forefront of everything we do. We can help you choose the most cost-effective energy plan for you at the time based on daily market intelligence and updates from suppliers. We won't do anything for your business that is going to increase the amount you are paying.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.