HomeEuropeWhat is behind the energy crunch in the UK and Europe?

What is behind the energy crunch in the UK and Europe?

But the closure of coal plants While the country’s aging nuclear plants are slowly The shutdown has left Britain dependent on gas for nearly 40 percent of the country’s electricity, more than any other fuel. (In France, by contrast, nuclear plants provide about 70 percent of the electricity.) It hasn’t helped that the winds that propel Britain’s wind turbines, which on average generate about 20 percent of the country’s electricity, have been up in recent months. I have been unusually weak. .

“That success in climate policy is coming back,” Mr. Gloustein said.

The UK is still not far enough on the move to clean energy to avoid the brunt of a surge in world gas prices.

“At this point in time, we haven’t really had enough renewables to really punch,” said Martin Young, a power analyst at securities firm Investec. “Gas is generally setting the price.” He said the UK’s heavy taxes on carbon emissions are also driving up the cost of electricity.

a fire that toppled a large cable The crisis was exacerbated by the introduction of electricity from France. And unlike other European countries, the UK has not invested in gas storage facilities, but instead allowed the closure of one such major facility in 2017.

The rising wholesale price of electricity is being passed along to homeowners, increasing budgets and forcing governments to intervene. In Spain, the government recently, in effect, said it would take profits earned on electricity generation from wind and solar to compensate consumers for higher gas prices.

About 15 million British households were recently hit with a hike in energy prices in the range of 12 per cent as part of a government program to make a big jump in rates. The capped rates are reviewed every six months; The next review, in April, is widely expected to result in a huge jump.

Another problem facing homeowners: Many electricity suppliers who offer low-cost deals to customers are unable to meet their commitments at current prices. Many of these relatively small companies have collapsed in recent weeks, and the accounts of their estimated 1.7 million customers are being auctioned off to stronger companies. No one will lose power because of these business failures, but eventually those customers will pay higher rates, and companies that take on customers will be able to pass the extra cost to bill payers.

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