The government has published this UK gas supply explainer.
There has recently been widespread media coverage of wholesale gas prices, and the effect this could have on household energy bills. The impact on certain areas of industry, and its ability to continue production, has also attracted attention.
This explainer sets out the background to the issue and the action the government is taking to protect the UK’s energy supply, industry, and consumers.
Natural gas prices have been steadily rising across the globe this year for a number of reasons. This has affected Europe, including the UK, as well as other countries around the world.
Later, the author of the “explainer” reassures us consumers that energy prices may not go up as much as one might expect:
The high wholesale gas prices that are currently visible may not be the actual prices being paid by all consumers.
This is because major energy suppliers purchase much of their wholesale supplies many months in advance, giving protection to them and their customers from short-term price spikes.
The Energy Price Cap is also in place to protect millions of customers from the sudden increases in global gas prices this winter. Despite the rising costs of wholesale energy, the cap still saves 15 million households up to £100 a year.
Isn’t it nice that the government protects consumers by stopping energy firms passing on price rises?
Completely unrelated: Four more small energy firms could go bust next week, the BBC reports.
Some of you may remember that the Bishop Hill blog used to cover climate and energy issues in a moderate and well-informed way. Unless I missed the announcement of a move, that blog does not seem to have been active since 2019. However I recently found that the Bishop is on Twitter, one of the few reasons left to visit that horrible place.