Energy Crisis

I had multiple discussions with people on here leading up to and after Russia’s invasion of Ukraine, highlighting the impact it would have on the west if we decided to get involved.

For me, personally, I wasn’t completely against sanctions that were put in place as I am in a position financially to cope with these insane price hikes. However, working in energy procurement, I was also fully aware of the severe impact this would have on high kwh consuming businesses and how they would have to offset their additional costs onto their customers just to survive. A lot of people were cool with that or just in complete denial that we would get to that stage, as only 4% of UK gas is imported from Russia.

I wonder how cool they are with it now. This morning Offgem have announced ANOTHER 80% price hike. This brings the average household bill to £3549 per annum. This is forecasted to rise to £6823 by April. I am looking at forward curve of gas and believe me, that estimate is EXTREMELY conservative, but let’s say it’s true, that leaves the average household with monthly energy costs of £568.55.

If you think the bad news ends there, it doesn’t. Domestic invoices lag behind SME invoices in terms of price rises. This only means two things, SME sector will either have to cease trading or effectively have to double their costs to survive. More money for us to dish out. Russia’s invasion of Ukraine is being scapegoated for the reason behind this crisis (in reality, it has been going on since July 21), but it doesn’t mean that this cycle will never end until the war in Ukraine ends, and with America supplying Ukraine with £3b worth of military aid that will last for ‘years to come’, that war isn’t ending any time soon.

How many people will be left starving, homeless, out of business or dead before the west decide to either nuke the Russians or cut off support to Ukraine? People have been downplaying the energy crisis for months but I can’t see it ending any other way.

Western governments have put their citizens in the shiiiit without our permission and nobody seems to care about it.