Russia & Ukraine: How does the war affect our energy bills?
Updated: Apr 20
In recent days, the battle has roiled global markets, generating stock market volatility, driving up oil prices, and infusing even more uncertainty into an already unbalanced global economy.
Russia is one of the world's largest oil and gas producers, and any disruptions are likely to have a significant influence on pricing.
How does Russia's invasion into Ukraine have any effects on our energy prices?
The repercussions of a possibly long-running dispute involving Europe's main gas supplier sent shivers through markets, influencing prices across a wide range of asset classes and investments.
A long conflict might put strain on economies, particularly the United Kingdom's, with the cost-of-living crisis posing a particular threat.
Inflation is currently at a 30-year high of 5.5%, but with the price of oil, gas, and food supplies all rising as a result of the Ukraine conflict, economists are warning that it could rise even more, which inevitably affects growth as well.
What is the government doing to protect customers against additional hikes in their energy bills?
With a £200 bill cut this autumn and a £150 non-repayable reduction in Council Tax bills starting in April, the UK Government are taking quick action to help more than 27 million households cope with escalating energy costs.
The majority of households will receive a £350 boost as part of this £9.1 billion package of support, which will help people throughout the country cope with financial constraints this coming year. This is on top of the £12 billion in support already in place to assist families with the rising cost of living.
What about businesses?
The UK Government are committed to ensuring a competitive future for energy-intensive businesses, and have offered them with significant support in recent years, including more than £2 billion to help with energy costs and protect jobs.
Investec oil and gas analyst, Nathan Piper stated,
Disruption to the flow of gas [from Russia to Europe] would result in extremely high prices with no real alternatives.
Russia is the world's greatest natural gas exporter, and there are fears that western sanctions may force, the Russian President Vladimir Putin, to "weaponise" his resources and restrict supplies to Europe.
This would raise wholesale costs around the world, even in the United Kingdom, which imports very little gas directly from Russia.
How can we help?
It's always a good idea for your business to reassess its energy strategy frequently and that means that you should take the time to research and evaluate which gas and electricity rates are most suitable for your own business.
This task can be quite daunting for anyone but our energy experts at Place Support Partnership can assist you with planning, switching, and implementing the best approach for your business in a more efficient and cost-effective way. For more information on how we can help, click here.
Contact us now at email@example.com, or simply give us a call on 03330 156 289.