The place does the UK get its fuel from – and why are vitality costs rising?

Households within the UK are bracing themselves for an increase in wholesale fuel costs, including to the cost-of-living crunch. Right here’s every part you have to know fuel shortages and rising vitality costs within the UK

With many Brits scuffling with rising energy bills and inflation, a big hike in wholesale fuel costs has been the ultimate push that has prompted a number of energy suppliers within the nation to go bust.

The quantity that vitality suppliers have paid for fuel has soared by 250% for the reason that begin of 2021, in line with knowledge from business group Oil & Fuel UK, and this has contributed to the monetary strain confronted by these suppliers.

Right here’s what you have to find out about who provides the UK’s fuel, whether or not there’s a shortage, in addition to all of the the reason why the costs have gone up lately.

The place does the UK get its fuel from?

Whereas practically half (44%) of the UK’s fuel provide is produced domestically, being piped from the North Sea and the East Irish Sea to refineries on land, this output has been steadily reducing over the previous 20 years.

Round 47% of the nation’s fuel provide now comes from throughout Europe – predominantly Norway, Netherlands, Belgium and Russia – by means of long-distance pipelines.

One other 9% is imported primarily from Qatar as liquid pure fuel (LNG), transported in tankers at temperatures under -160C by ship. LNG can also be imported from the US in addition to Trinidad and Tobago, with a small quantity coming to the UK from Russia as effectively.

Is there a fuel scarcity within the UK?

Sure, the UK has been hit badly by the fuel scarcity attributable to 85% of its properties utilizing fuel central heating. Nonetheless, when in comparison with different nations throughout Europe, the UK has a lot much less fuel storage.

Figures from Fuel Infrastructure Europe reveal that Italy, Germany, France, Netherlands, Poland and Spain all have bigger fuel provides than the UK.

Talking within the Home of Commons, enterprise secretary Kwasi Kwarteng assured that Britain has a “various vary of fuel provide sources”.

He mentioned: “We’ve got enough capability, and greater than enough capability, to satisfy demand and we don’t count on provide emergencies to happen this winter.”

Why are vitality costs rising?

Vitality costs within the UK have gone up attributable to a mix of things. It started with the chilly winter throughout Europe final 12 months when many individuals spent extra time inside than normal attributable to Covid lockdowns.

The upper demand for vitality prompted reserves to be depleted, and whereas these would have usually have been replenished over the summer season, output dropped as many main producers had been catching up with upkeep postponed throughout lockdowns.

Increased calls for mixed with decrease wind and photo voltaic renewable vitality attributable to calm weather put strain on provides, which has prompted wholesale fuel costs to soar.