In the aftermath of Russia’s invasion of Ukraine, the UK’s gas expenses have surged by an additional £90 billion, bringing the total spent on wholesale gas to approximately £140 billion.
This sharp rise, from the beginning of 2021 to the end of 2024, reported by the Energy and Climate Intelligence Unit (ECIU), highlights a drastic increase from the pre-crisis annual expenditure of £10-15 billion.
This surge in gas costs has not only placed a heavy financial burden on consumers – but also exposed the UK’s vulnerability to international market fluctuations.
The average cost per individual due to this crisis is around £2,000, significantly higher by £1,300 than it would have been under normal circumstances.
ECIU report
The report also noted a 15% reduction in UK gas demand since late 2021 due to these elevated prices, which paradoxically helped mitigate even steeper costs.
However, these high prices have broader implications, affecting electricity bills as well due to the interconnected nature of energy pricing.
Without significant changes, the country continues to risk severe economic impacts from future energy price spikes.
