The UK is facing a serious warning from experts who say the country is “dangerously underprepared” and at risk of another energy crisis and subsequent price increases. The Energy Crisis Commission, comprising members from Energy UK, Citizens Advice, and the Confederation of British Industry (CBI), has highlighted significant weaknesses in the UK’s energy system, particularly in terms of supply, demand, and targeted support for the most vulnerable households.
Established earlier this year to assess the repercussions of the recent energy crisis triggered by Russia’s conflict in Ukraine, the commission revealed that the UK suffered greatly during the 2021-2022 energy crisis, ranking as the second most dependent country on gas and the fifth most reliant on gas for electricity among EU nations.
The commission found that the slow progress in improving housing quality, delays in implementing new-build efficiency standards, and missed opportunities in expanding renewable energy infrastructure have resulted in UK households bearing the brunt of the crisis. The report emphasised the urgent need for more domestically produced renewable energy and storage capacity to reduce the country’s heavy reliance on gas for heating and electricity.
Furthermore, the experts pointed out that the UK has not done enough to decrease energy demand, especially from sources like gas that are susceptible to global price fluctuations. Inadequate insulation in British homes compared to other nations has also been identified as a major issue. The report highlighted that poorly targeted support schemes have adversely affected the most vulnerable households, leading to increased overall costs and a rise in national debt.
The impact of the crisis on vulnerable households has been significant, with nine out of ten households reducing their energy usage and 7.5 million falling into fuel poverty. Additionally, nearly 8% of vulnerable businesses reported ceasing their operations partially or entirely, while 22% stated they would dip into cash reserves due to higher energy costs.
While acknowledging the government’s recent efforts to address supply concerns by promoting renewable energy growth, grid enhancements, and carbon capture and storage, the commission stressed that more needs to be done to enhance the UK’s resilience to future energy crises. Former MP David Laws, who chaired the commission, highlighted the importance of expanding public investment in home energy efficiency and developing a clear strategy to transition away from fossil fuels.
In conclusion, the report urged the government to improve the targeting of support for vulnerable households and businesses, review regulations to shield consumers from supplier failures, and implement a comprehensive plan to mitigate the risk of future crises. Regular stress tests of the country’s susceptibility to price shocks and disruptions were also recommended to ensure better preparedness for any future energy challenges.