Prior to the summer of 2021, the UK wholesale prices, with a few exceptions, had been relatively
stable for many years. Since then however, we have seen extraordinary increases in wholesale
gas and power prices resulting in some significant consequences for global economies.
Wholesale prices reached a new record in December 2021, settled somewhat throughout the
year, then suffered extreme increases in March 2022 and so far have not recovered.
Joseph Letras, General Manager at Pulse Business Energy said:
“As a result of the energy crisis, businesses across multiple sectors are faced with considerable disruptions and increases in their energy costs. The energy purchasing decisions taken in the next 12 months will determine whether businesses will be able to continue operating in the future.”
We examined the background that led to the current energy crisis and look at the global events that could shape the future of UK wholesale prices.
The Energy Crisis Explained – Key Drivers behind the current energy crisis:
- Environmental situation
- Reduction in nuclear power .
- Low levels of wind
- Dependence on natural gas storage
- Adverse weather conditions in 2021
- Russian gas pipeline tension
- Russian invasion of Ukraine
- Ad-hoc market drivers
Are your utilities up-to-date?
Business customers are not protected by a price cap, and they will have full exposure to the wholesale energy price increases. Get a free assessment of your current energy management and procurement plans and net zero reporting for electricity and gas.