Energy Prices Keep Rising

The wholesale price of gas is increasing, and many UK energy suppliers fear they may go under.

Since the start of the year, the cost of gas for suppliers has increased by 250%.

Regardless of the sharp rise in costs for the energy companies, consumers are protected by the energy price cap.

The rise in costs has been put down to several factors, a cold winter left stocks depleted, refineries shut down due to severe weather and a drop in supplies from Russia, according to industry analysts.

Two thirds of the UK’s natural gas demand was met by imports, exposing the UK to a global energy price hike.

Data from the energy regulator Ofgem shows that the number of energy providers in the UK has declined by a third since mid-2018.

Four firms have already gone bust, and there are concerns that others could soon follow.

Despite the crisis in the energy market, the government says the UK "benefits from having a diverse range of gas supply sources" and gas production in Norway will "significantly increase" to support UK and European demand.

"There's absolutely no question of the lights going out or people being unable to heat their homes.