The crisis caused by soaring energy prices

Rising energy costs have been the key driver of our current cost-of-living crisis.

Coronavirus lockdowns, cold winters and geopolitical issues are factors driving up energy costs.

In early 2022, demand for gas and oil was increasing as the global economy began to recover from the pandemic, but then Russia’s invasion of Ukraine in February massively disrupted the international energy market.

According to the Office for National Statistics, in the 12 months to March 2023, electricity prices in the UK rose by 66.7% and gas prices by 129.4%.

Energy costs are the second biggest concern for people in the first two weeks (48%), excluding food costs (51%) . The Guardian states that the energy crisis caused by the war in Ukraine is costing the equivalent of £1,000 per adult.

For some renters, energy bills are paid by someone else or included in the cost of the rental, but this is only a minority. Many people have faced dilemmas over spending less on clothes and food, and some of my friends have sought part-time jobs to add to their income.

Cecilia, a curatorial student at York University, told me: “This year I’m paying £80 more per month for energy than I used to. Although my family is able to provide me with financial support, to reduce the guilt of claiming more living expenses.

“I found a part-time job – working as a salesperson in Jo Malone – which required me to stand for several hours a day and I was already very tired when I got home. It also left me with little to no weekend rest or social interaction.”

In response to growing concerns about rising energy bills, the UK Government introduced the Energy Bill Support Scheme. This initiative aims to alleviate the financial burden by providing a £400 discount per household specifically designated for energy bill payments from October 2022 to March 2023.

Gao, an engineer employed at Amazon, reflects on how the escalating cost of living has had a noticeable impact on his overall quality of life. The surge in electricity and gas expenses this year has, he says, been particularly worrying.

“Despite the monthly government subsidy of £66, my electricity bill remains 40% higher than last year. In comparison to the previous year when I used the heating throughout the winter, this year I only keep it on for a few hours at night during the coldest periods and am constantly reminded to turn it off whenever I leave the house.”

With “brutal” energy bills set to double as the government support scheme comes to an end in April, there will be new challenges for people trying to balance their living expenses.

Featured image by Marketwatch.