Energy Prices Hit Record High
September 7, 2021
Consumers in the UK are facing a growing price crunch for energy as wholesale electricity costs surpassed their highest ever level.
The electricity market price passed the £100 a megawatt-hour mark last month for the first time since the market was formed in 1990, according to analysis by Imperial College London.
The average market price reached £107.50/MWh, up 14% on July, and well above the previous record of £96/MWh recorded in the run-up to the 2008 global financial crisis.
‘‘Were these prices sustained, there could be yet more price increases for homes and businesses” according to a senior lecturer at Imperial.
”A boom in global gas prices is the primary culprit for driving up UK wholesale electricity prices thanks to a surge in post-pandemic energy demand across the global economy; this may have been compounded by the impact of the climate crisis on global weather patterns” added the lecturer.