An extra £50 billion has been spent on gas by the UK since Russia invaded Ukraine, a new analysis suggests. Gas is used to produce around 40% of the country’s electricity as well as to heat 85% of British homes, which are among the least energy efficient in Europe.
Analysts at the Energy and Climate Intelligence Unit said the impact of the current crisis would have been less severe if the UK was further ahead with its net-zero policies of improving energy efficiency in homes, building more onshore wind and installing more heat pumps. Wholesale gas prices exploded after the invasion and have been in a volatile state ever since, with many British households now burdened with much higher bills.
The ECIU study estimates that the UK paid between £50-60 billion more for wholesale gas in 2022 than in a typical pre-pandemic year. Dr Simon Cran-McGreehin, the unit's head of analysis, said: “As the IMF has pointed out, the energy crisis hit UK households harder than those in other western European countries because as a nation we’re incredibly dependent on gas. The price of gas is largely set by international markets, so the only way to protect yourself is to use less.
