Member-only story
Why The UK Has High Energy Costs Compared to Europe and the USA
The United Kingdom has crippling Energy costs, which are slowly strangling economic growth because the energy we use to heat our homes and travel to work costs energy.
(Behind the paywall link)
Transport affects everything because the increased transport cost will be passed on to customers with the rise of customer goods and commodities prices.
The heart of the UK energy crisis is the decision of the previous Conservative Government, which was in power from 2010 to 2024, to close UK Centrica’s Rough storage facility in the North Sea.
For more than 30 years, this facility provided 70 per cent of the UK’s gas storage capacity.
Know that the UK only holds enough gas reserves for two days and a reserve of just 2% compared to the European average of 25%.
It’s a decision based on the green agenda and the experiences of the current generation of UK political leaders.
The USA has reserves equivalent to 4.9 times its annual consumption.
This means that, without imports, there would be about five years of oil left at current consumption levels, excluding unproven reserves.
