Like many countries, the UK is navigating a gas crisis that has sent shockwaves through its energy landscape.

With increasing pressures to reduce carbon emissions and transition to cleaner energy sources, supply chain disruptions, and geopolitical tensions, the petrol market in the UK confronts unprecedented challenges. 

This crisis has elevated concerns regarding energy security, rising prices, and the need for long-term, sustainable solutions to satisfy the nation’s energy demands.

Several interrelated factors have predominantly caused the gas crisis in the UK. As mature fields are depleted, domestic gas production has decreased, necessitating a greater reliance on imports to meet the nation’s energy requirements. 

In addition, geopolitical tensions and conflicts in gas-producing regions have introduced uncertainty into the global supply chain, leading to supply interruptions and price volatility. The effects of the Gas crisis are felt on multiple levels. Rising petrol prices result in higher energy bills for consumers, placing an additional financial burden on households already struggling with the rising cost of living. 

Below are the most commonly asked questions regarding the gas crisis in the UK.

FAQ’S

Why are energy & gas costs so expensive?

As countries began to recover from the pandemic, there was an increase in demand for petrol that could not be met due to a lack of supply. This resulted in higher petrol prices in 2021. Then, the invasion of Ukraine by Russia posed a threat to supplies, increasing petrol prices.

Electricity costs are also elevated because they are directly proportional to petrol costs. Even though approximately 40% of our electricity originates from renewable sources, it is primarily combined with gas-generated electricity for transmission and distribution across our electricity network. The energy system structure links the price of electricity to that of natural gas, despite the greater proportion of renewables on the grid.

Why has my supplier also increased the standing charge?

The daily standing charge is a fixed quantity that must be paid regardless of consumed energy. The Energy Price Guarantee does not cover standing charges, and Ofgem establishes the maximum amount that suppliers can charge. This varies based on the type of energy you use, your supplier, your tariff, and your location.

Energy suppliers use standing charges to cover costs such as network maintenance, connecting your residence to the energy network and metre readings. Recent increases in standing charges are intended to cover the cost of several energy suppliers collapsing in 2021. These costs include the administrative expenses associated with transferring clients to new suppliers. Ofgem has stated that suppliers can set their own standing charge and tariff rates if total invoices do not exceed the average amount.

Wholesale petrol prices have indeed fallen dramatically in recent months. This is partly because a milder winter than last year has reduced heating demand. Countries have increased their gas storage capacity with liquefied natural gas worldwide, ensuring a sufficient supply and decreasing reliance on Russian gas.

This alleviates concerns about winter petrol shortages. The wholesale price of petrol is now comparable to before the Russian invasion of Ukraine, but it is still substantially higher than two years ago.

If demand continues to decline, wholesale prices should fall. However, while wholesale prices are currently low, energy suppliers purchase natural gas and electricity months in advance to ensure price and supply stability. This means that costs are more fixed, and wholesale cost reductions are only sometimes passed on to consumers. Recent reports indicate that petrol prices for later in 2023 will exceed the current price. This suggests that prices may be elevated again next winter.

I’ve heard that draught-proofing can warm my home, but I’m concerned about fungi and condensation. How can I handle this?

If you find mold in your residence, remove it and investigate its source. If the mildew is caused by faulty plumbing or a leaking pipe, or if a damp-proof course is not functioning, you will typically need a professional’s advice and assistance to resolve the issue. If this is not the origin of the condensation or mold, there may be a problem with the air’s humidity.

If you do not have condensation issues, draught-proofing could help you save money on energy bills and feel more comfortable. To avoid potential issues in the future, avoid obstructing any controlled ventilation. Air bricks, grilles, wall vents, and trickle vents must be left open to allow saturated air to escape and fresh air to enter.

There will be draughts at any accidental opening in your home that leads to the outdoors, such as spaces between fascia boards and door frames. With caution, You should obstruct most of these areas requiring adequate ventilation. Be cautious in areas with open fires or chimneys and moist rooms such as kitchens, restrooms, and utility rooms.

Removable draught-proofing, such as inflated draught-excluders, may be less effective, but they are a viable alternative because they allow for easy ventilation. Condensation is less of a problem in warmer homes because moisture condenses on cooler walls. If your residence is adequately ventilated and heated, condensation may be less likely to form.

What is the greatest alternative to a gas boiler if heat pumps cannot be used?

This depends on your motivations and your definition of ‘greatest’. Electric heating, such as storage heaters or direct-acting electric heaters, may be an option if you’re searching for a lower or carbon-free alternative. These have higher operating costs than heat exchangers or gas boilers but may be offset by installing solar panels. It may also be worthwhile to determine whether there are district heating systems to which you could connect.

I have done everything possible to reduce my energy & gas consumption but I still struggle to pay my expenses and heat my home. What assistance can I get?

Keeping your home warm reduces the likelihood that it will become damp and that you will become unwell. Consider your monthly income and expenditures as a starting point. You can calculate your budget using the online budgeting instrument provided by Citizens Advice. You can pay a larger portion of your energy costs if you save money or receive more financial assistance. On the Citizens Advice website, you can obtain assistance with the cost of living.

Gifts or benefits may be available to help you pay your energy obligations, such as a fuel voucher or grant from your energy provider.

All households are eligible for government assistance. The Energy Price Guarantee is in effect until 2024, and under the Energy Bill Support Scheme, every household should receive a £400 discount on their electricity bill.

If you owe money to your supplier, they must assist you in finding a solution. You should contact your supplier and negotiate a repayment plan. Try to negotiate an agreement that benefits both parties. Contact the Citizens Advice consumer helpline for additional assistance. A trained advisor can guide you by phone or email.

What assistance is available for individuals who heat their homes and water with oil?

Even if you have an electricity supply, the Energy Bills Support Scheme will reduce your electricity bill by £400. The Energy Price Guarantee will also limit your electricity costs.

If you cannot afford oil or may not be able to afford it shortly, you could receive additional financial assistance if you are off the gas grid and use oil as your primary heating source. You cannot register independently but receive assistance from a Citizens Advice advisor.

If you live in Wales and cannot pay for your oil, the Discretionary Assistance Fund may be able to assist. You must demonstrate that you require the funds immediately. You can apply for the Discretionary Assistance Fund through the Welsh Government website.

To conclude

In conclusion, the gas crisis in the United Kingdom is a complex and multifaceted problem requiring immediate action. Although the causes are diverse, such as the conflict in Ukraine and a lack of storage space, the effects on British households and businesses are severe. This winter, due to the skyrocketing cost of energy and the unpredictability of supplies, many will encounter financial hardship and operational disruptions.

To resolve the crisis, the UK government must take decisive action to secure alternative gas supplies, provide aid to the most vulnerable households, incentivize reduced energy consumption, and expedite the transition to renewable energy sources. Achieving energy security and affordability while meeting climate objectives will require cross-agency coordination, substantial investments, and a long-term strategy. If effectively managed, the United Kingdom will emerge from this crisis more resilient and sustainable.

The gas crisis is a wake-up call for the United Kingdom to establish a comprehensive energy policy for a future with zero net carbon emissions.

Useful Resources

  1. UK Government –  Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter –  https://www.gov.uk/government/news/government-introduces-new-energy-prices-bill-to-ensure-vital-support-gets-to-british-consumers-this-winter – .html – October 2022.
  2. Bruegel – National fiscal policy responses to the energy crisis – https://www.bruegel.org/dataset/national-policies-shield-consumers-rising-energy-prices – .html – June 2023. 
  3. Department for Energy Security & Net Zero – National Emergency Plan 2023 – https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1175172/national-emergency-plan-downstream-gas-and-electricity.pdf  – .pdf – July 2023.
  4. Department for Energy Security & Net Zero –  Energy Trends UK – https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1166020/Energy_Trends_June_2023.pdf –  .pdf – Jan – March 2023.
  5. National Gas – Gas incident and emergency overview – https://www.nationalgas.com/document/138121/download  – .html