Energy Crisis Commission: month of war in the Middle East a ‘sobering reminder’ of UK’s vulnerability to energy price shocks

“The conflict in the Middle East is a sobering reminder of the UK’s continued vulnerability to external energy shocks. Recent events have once again pushed global oil and gas prices sharply upward, and whilst it is too early to know if they will be sustained, they remain volatile as instability disrupts key production and transport routes. This puts the UK at risk of entering another energy price crisis.
 
“Households and businesses have barely recovered from the last shock, which cost the taxpayer tens of billions of pounds in support. Indeed, many are already starting to see the impacts on this conflict, particularly businesses, who face some of the highest energy costs in the G7. These developments reinforce what the Energy Crisis Commission has warned repeatedly: the UK is exposed to sudden and severe price spikes. 
 
“New UK gas extraction would do little to lower energy prices because resources are sold into, and prices set by, international markets. Increasing the power supplied by domestic renewables would make prices more controllable and electrifying heat and transport would mean relying less on volatile international prices. 
 
“The Government should be credited for doubling down on domestic clean technology - wind, solar, heat pumps and electric vehicles - which are all essential for genuine economic and energy security and resilience in an unstable world.
 
“However compared to other countries our energy system, and prices, are more reliant on gas, and we still do not have sufficient ability to target financial support to customers who need it most. This means options for the Government to support customers could be less effective and more expensive than they need to be. 
 
“This latest war is a stark reminder that the only credible, long‑term shield against future crises is a rapid expansion of renewables and clean technologies, electrification of the economy and reforming the energy market. 
 
“The ECC therefore reiterates its longstanding message: to protect British households and businesses from the next energy crisis, the UK must continue to accelerate - not delay - its transition to clean, secure, home‑grown energy and turbocharge electrification of heat and transport.”


ENDS