POWER blackouts are on the cards this winter due to an energy crunch that could leave millions of households in the dark.
The UK and Europe have the lowest stockpiles of gas in more than a decade and experts fear it could lead to blackouts across the country.
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Jeremy Weir, of commodity trading giant Trafigura, said: “There’s a real concern if we have a cold winter we could have rolling blackouts in Europe.”
Wholesale energy prices have spiked to record levels as supplies run short, which is having a knock-on effect on households.
A delay to a controversial gas pipe between Russia and Germany, a flashpoint in the ongoing energy crisis, sent the cost of UK gas up again yesterday.
Many energy firms are struggling to cope with rising prices and a raft of providers have collapsed in recent months.
Yesterday, two more small British suppliers, Neon Reef and Social Energy Supply, ceased trading leaving 35,500 customers without a provider.
There are fears more suppliers could leave the market as problems in the industry continue.
Russia has put Germany’s approval of the Nord Stream 2 pipeline at the heart of talks over supplies.
Germany’s energy regulator has suspended approval of the project, which would see a natural gas pipeline run from Russia to Germany.
Since approval was suspended, UK and EU wholesale gas prices have surged an eye-watering 17%.
The regulator said the pipeline’s operating company needed to be compliant with German law before it would agree to the project.
That’s despite the fact that Chancellor Angela Merkel’s government has supported the project.
But Boris Johnson has urged Europe to oppose it, saying it risks undermining stability.
There are fears the pipeline will increase Europe’s energy dependence on Russia.
As well as that, there are concerns of military action by Russia, which is building up forces near Ukraine.
Will my energy bill go up?
Rising wholesale prices have a knock-on effect for UK households.
Simply put, if your energy supplier’s costs go up, these will be passed on to you.
This can be seen in inflation, which today climbed to 4.2%.
Families are now £21 worse off a week, and much of the increase in inflation is being put down to soaring energy bills and fuel costs.
You shouldn’t feel the effects if you are on a fixed deal with your energy provider.
But households on a variable tariff will likely see their bills go up.
It’s also a problem for anyone whose energy supplier goes bust.
When your provider collapses you are moved to a new supplier, and usually put on to its variable tariff.
While you can shop around and move to another firm, because prices are rising so rapidly, it’s virtually impossible to find a good deal at the moment.
In fact, the current advice is to stay on the variable tariff until prices settle back down as these are at least limited by the energy price cap.
It is hoped prices may ease off towards the summer and there will be better deals available.
In the meantime, keeping costs down is important.
We’ve looked at how much it costs to run an electric heater, a log burner and an electric blanket.
We’ve rounded up gadgets that could save you money and the worst appliances to leave on standby.
Some government schemes can also help if you are eligible.
The cold weather payment gets you £25 towards your bill if the temperature drops below a certain level.
Low income households can get up to £140 towards their electricity bills with the government’s warm home discount scheme.
Comcast reports of nationwide blackout
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