25.10.202113:41 Forex Analysis & Reviews: Energy crisis threatens the UK with "mass extermination"

The energy industry in the UK is on the verge of total collapse. The global energy crisis, which arose against a rapid rise in gas prices in the Euroregion, also covered the United Kingdom. As a result, many British energy suppliers across the country came to complete bankruptcy.

The head of a large energy company Scottish Power, Keith Anderson, warned that the government urgently needs to take action in light of what is happening. Otherwise, at least 20 more British suppliers will collapse in the coming months.

The British government is likely to change the limits on the cost of electricity for consumers to avoid a severe collapse. The revision of restrictions takes place in the country under the leadership of the authorities and the Management of the UK gas and Electricity Markets twice a year. The next time the revaluation of consumer electricity prices is scheduled for April, but most likely, the revision will take place earlier than scheduled. According to Anderson, if the government does not do this, there is a great risk of "blindly coming to mass extermination."

Before the energy crisis hit the UK, there were more than 50 small and medium-sized independent energy suppliers. The share of British suppliers in the market was 30%. Today, experts do not exclude that the British energy sector will noticeably become impoverished. Only 5-6 enterprises will remain functioning. Many commercially stable and quite good companies will go bankrupt because they will find themselves desperate when they cannot shift high costs to consumers.

Since the beginning of autumn, 13 British energy companies have come to a complete collapse, which is why almost 2 million customers face a situation of a sharp change of suppliers. Thus, Goto Energy provided gas and electricity to about 22 thousand private customers. However, it could not cope with the crisis and stopped its work. Pure Planet, Colorado Energy and Daligas also went bankrupt. These energy companies together served more than 260 thousand customers.

The Minister of Business, Energy, and Industrial Strategy of the UK, Kwasi Kwarteng, predicts the bankruptcy of several more companies this winter. However, in September, he promised his citizens that they would not remain without electricity and gas. If you believe the promises of the Minister of Energy, gas and electricity will reach consumers in any case, even if the supplier suddenly fails to fulfill its obligations.

Due to the extreme price shock, the UK government has seriously considered expanding production. There was information that the British authorities intend to continue the construction of the Wylfa nuclear power plant (NPP) in Wales, which was stopped last year due to insufficient funding.

The cost of gas broke the record on September 29, when the price for 1 thousand cubic meters reached $ 1,050. At the beginning of trading on Monday, October 25, on the London ICE exchange, the cost of natural gas rose to $ 1,153 per 1,000 cubic meters. By the end of the trading session on Friday, October 22, the gas price was approximately $ 1,050.