How Long Will The Energy Crisis Last?

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In recent years, energy prices have soared to the highest in recorded history, with many consumers feeling the pinch in their wallets.

The energy crisis is real and, thus far, has pushed 6.7 million households into poverty. This shocking statistic means that 24% of the UK’s population has dropped below the poverty line due to the energy crisis.

In this post, we’ll ask and explore the crucial question at play: ‘How long will the energy crisis last?’. Keep reading to learn more.

How long will the energy crisis last?

It is expected that the energy crisis will last until 2024, but truthfully there’s no way of really knowing.

Right now, the situation is dire and it’s important to ask how long it will last. This isn’t an easy question to answer as there are many factors at play, such as government action and global resources — which can take time to transform and adjust.

There have been suggestions that the high energy prices will become the “new normal” by mid-2023, but the situation is still uncertain.

However, research suggests that as we enter the winter months the demand for energy will greatly increase – and so will the cost of it.

Additionally, ill preparation for these strenuous months could cause further problems. If we don’t plan correctly, there is potential for the energy crisis to last much longer than anticipated.

Why is there still an energy crisis?

The invasion of Ukraine by Russia has significantly intensified the energy crisis, particularly given Europe’s considerable reliance on Russia for energy supplies.

Russia is the largest provider of natural gas to the EU, supplying over one-third of its gas consumption. The geopolitical upheaval has disrupted the regular flow of gas, creating a supply shortfall and driving prices to unprecedented levels.

Furthermore, the uncertainty surrounding the length and outcome of the conflict has caused further volatility in the energy market, contributing to the unpredictability of the energy crisis duration.

What could stop the energy crisis?

There are several ways in which the ongoing energy crisis could be calmed down or stopped altogether. Some seem more realistic than others, with varying degrees of pressure required from the public, government and other individuals to implement.

Let’s explore the three key options:

Russia pulls out of Ukraine

If Russia were to withdraw from Ukraine, it could lead to a significant easing of the energy crisis.

Despite the fact that Russia would receive heavy sanctions, the end of the war would most likely mean that before too long European countries will be buying Russian gas again.

These energy supply routes from Russia to the EU have been severely disrupted due to the ongoing conflict, causing prices to surge.

In the absence of geopolitical tensions, the regular flow of natural gas could resume, thereby reducing the supply shortfall that has been driving up energy prices.

This would also ease the current market volatility triggered by uncertainty surrounding the conflict, stabilising energy prices.

However, the fighting doesn’t seem as though it will end anytime soon, so we need to look elsewhere.

Greatly improve access to green energy

Aside from the war in Ukraine, another major factor prolonging the energy crisis is a lack of access to green energy sources.

Since countries, like the UK, have a minimal supply of oil and gas, it’s important that they improve their use of renewable energy sources to gain security for the years to come.

Renewables currently account for only 43% of the UK’s total energy generation, with most of this coming from offshore wind turbines. While this is a step in the right direction, there is still some way to go.

If governments can successfully invest in greener energies such as solar and hydropower, then countries could move away from fossil fuels – reducing costs and ensuring a more secure energy future.

This future-proofing of national energy supplies will bring stability and security to European nations, as a heavy reliance on external and international sources of energy will be reduced.

Additionally, the continued adoption of green energy sources such as wind and solar not only reduces reliance on fossil fuels, but it also helps to reduce the effects of climate change.

Despite the cost of implementing domestic renewable energy sources, government schemes, like the ECO4 Scheme, are helping thousands of UK homes access green energy at an affordable cost.

Nationalisation of energy companies

The nationalisation of energy companies in the UK is another method that could provide a viable solution to the energy crisis.

By bringing these companies under state control, the government would have the ability to regulate energy prices directly, protecting consumers from the volatility of market prices and allowing households to make savings of up to £4,400 over the next two years.

Recent polling shows that 73% of the public (including 72% of Conservative voters) would support the nationalisation of energy companies if these companies cannot offer lower energy bills.

The cost of nationalisation would be an estimated £2.8 billion to nationalise the five big energy supply firms – as opposed to the projected £4 billion bailing out Bulb would cost.

Nationalisation would also allow for a more strategic and coordinated approach to energy production and distribution, ensuring that energy is distributed equitably and efficiently.

It could also facilitate greater investment in renewable energy technologies, thus reducing the country’s dependence on fossil fuels and foreign energy sources.

However, nationalisation is not without its challenges and criticisms, and it would require careful planning and robust governance to ensure the benefits are realised.

Is the UK being affected more by the energy crisis?

The UK is witnessing a more profound impact of the energy crisis as compared to other European countries.

Statistics from the European Commission show that on average, European countries pay 6.8p per kWh for gas and 21p per kWh for electricity.

When compared to the UK, this is 38% less for electricity and 34% less for gas.

The UK’s dependence on gas has led to these higher prices, with approximately 85% of UK homes using a gas boiler to heat their homes.

Match this with a lack of options for storing fuel and cutting ties with the EU following Brexit, and it’s easy to see why the UK is feeling the economic strain more than other countries.

What can the UK government do to stop the crisis?

The government has responded by freezing energy prices – a move which has been welcomed by millions of households across Britain who are struggling to make ends meet.

Known as the energy price cap, it ensures that the amount households are charged for energy remains at a fair and reasonable level.

In addition to the energy price cap, the UK government has also implemented schemes to help improve the energy efficiency of UK homes through renewable energy sources, such as heat pumps.

Through initiatives like the Energy Company Obligation (ECO) Scheme, low-income households likely suffering from some of the highest energy bills can gain energy independence and save money.

By improving the efficiency of homes, it will not only reduce fuel bills for those in need but also help reduce emissions from energy production and consumption.

What can you do to lower your energy bills?

With the end of the energy crisis seemingly not coming anytime soon, what can you do to reduce your energy bills?

The best way to save money on the rising cost of energy is to be more energy efficient. This could mean switching off lights and other appliances when not in use, installing insulation and double glazing, or using LED lighting instead of incandescent bulbs.

Another simple and easy way to save money is by switching energy suppliers – with so much competition in the market, consumers can find better deals that could save them up to £300 a year on their energy bills.

Finally, another great way to save money is by utilising one of the UK government’s many schemes and make the switch to renewable energy at a lost cost.

By taking advantage of these schemes, you can reduce your reliance on fossil fuels and help to protect the environment at the same time.

Upgrade your home, reduce energy bills

It’s clear that the energy crisis is an issue that won’t be resolved overnight, but you can still take steps to reduce your energy bills and help protect the environment.

Being a registered supplier of many of the government’s energy-saving schemes, we can help you to upgrade your home with renewable energy solutions at no cost.

Whether it’s replacing inefficient boilers, upgrading insulation or switching to green energy sources, our team of experts can provide the advice and support you need to make the switch.

Get in touch with our experienced today or complete our free online eligibility checker and begin lowering your energy bills during this unprecedented crisis.

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