Britain’s Winter Energy Crisis Is About to Get Worse
Regulation is important for protecting consumers. But wholesale price volatility and a changing energy landscape make today’s rules look dated.
Getting more expensive.
Photographer: Paul Ellis/AFP
Prices have been rising across many areas, but the one we’re likely to notice most this winter are energy bills. This won’t just affect household budgets; there will be political repercussions too.
Dramatic increases in U.K. and European wholesale power prices in recent weeks are driving up the cost of energy for consumers, with expectations for bigger hikes during the winter months when demand soars. The British media has already begun warning of a rise in “fuel poverty.” Addressing this won’t make the government’s next big task any easier: The U.K. is about to host the United Nations’ COP26 climate summit in a couple of months and will need to spell out how Britain will pay for the transition to net zero.
