As governments around Europe hurried to unveil a slew of measures to alleviate the burden on homeowners, British energy producers are preparing for a significant increase in wholesale prices.
It comes amid dire forecasts that gas prices might increase by as much as 50% today due to Russia’s state-backed energy company Gazprom’s last-minute move to prevent the reopening of a crucial pipeline to Europe.
The largest gas pipeline from Russia to Europe, Nord Stream 1, supplies over 55 billion cubic metres of gas annually.
While just 4% of the UK’s gas comes from Nord Stream 1, other nations, including Germany, depend significantly more on the pipeline, therefore its shutdown is anticipated to push up prices on global energy markets.
Fears have been expressed that manufacturers may be compelled to switch to a four-day workweek in order to save energy.
Germany promised to spend £56 billion (€65 billion) in an effort to lower inflation and consumers’ high energy bills.
Sanna Marin, the prime minister of Finland, put out an £8.6 billion (€10 billion) loan and guarantee proposal, and Sweden would provide billions in cash in an emergency to assist energy producers.
Last night, Matteo Salvini, the head of Italy’s far-right League party, broke with tradition by urging an end to the country’s sanctions on Russia.
When Nord Stream 1 will restart has not yet been determined.