Whatever you think of the various proposals to deal with the energy crisis, one fact stands out beyond all others. As a nation, we are worse off. Natural gas prices are eight times higher than they were at the beginning of 2021. Much of the increase occurred before Vladimir Putin invaded Ukraine. The end of lockdowns played an important role, with a sudden huge burst of pent-up demand. There’s also been insufficient investment worldwide to meet both our own, relatively stable, energy requirements and the rapidly rising needs of China – keen to wean itself off dirty coal - and other parts of fast-growing Asia.
How bad are things in the UK? Look at our trade balance in fuel. In the second quarter of 2019, a year before Covid made its mark, our fuel deficit was £3.5bn. In the second quarter of 2022, the fuel deficit had widened to a whopping £13.8bn, largely a reflection of surging import prices.
