The UK is in the grip of an energy crisis. Strong post-Covid gas demand, high imports of LNG to Asian markets, reduced Russian gas exports and a lack of sufficient gas storage capacity all contributed to wholesale gas prices in the UK soaring by more than 80% since August to above GBP 66/MWh(USD 90/MWh). With the UK reliant on natural gas for nearly half of its power generation, this has led to a sharp rise in energy prices for both consumers and businesses:dayahead baseload power prices averaged GBP 266/MWh in mid-September, with October prices forecast to average GBP 122/MWh. At the same time, the bullish turn in gas prices has also resulted in the restart of some coal-fired power capacity, food supply chains have been disrupted and several small energy companies have already gone bust, with more expected to follow amid a row about the price cap on residential energy bills. With the UK facing a difficult winter, Gas Matters speaks to Andy Prendergast, acting national secretary at the GMB trade union, which represents some 30,000 workers in the gas industry, about how this crisis has highlighted the need for structural market reforms.
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