Rising gas prices brings hard times for energy companies
Over the weekend, gas and power prices soared as global demand surged. Cold weather swept through Asia and Russia, raiding supplies that were already low after high demand last winter.
In Britain, high demand, depleted stocks and a summer of little wind has increased energy prices. Records showed that it was the least windy summer in the UK since 1961, which has forced companies to rely on gas-fired power stations to provide energy.
However, Boris Johnson claimed that increasing energy prices was a symptom of a recovering global economy. He said that the increased prices after Covid will be “readily addressed” by market forces.
British energy suppliers raised their prices over the weekend, leaving many smaller firms vulnerable. The BBC reported that “four small energy companies have ceased trading in recent weeks, including Edinburgh-based People’s Energy, which supplied gas and electricity to about 350,000 homes and 1,000 businesses, and Dorset-based Utility Point which had 220,000 customers.”
Some firms have said the energy price shock could trigger a three day week for factories make gaps on supermarket shelves worse.
The BBC reported: “Industry group Oil & Gas UK said wholesale prices for gas had increased by 250% since January – with a 70% rise since August.”
Tomorrow I will host a roundtable with the energy industry and consumer groups, followed by a number of meetings with colleagues across Government.
Read more about the wider situation affecting Europe, including the UK, as well as other countries 👇🏿https://t.co/tmgQtzy0Xe
— Kwasi Kwarteng (@KwasiKwarteng) September 19, 2021