Signal Energy price cap rose from 1,216 to 4,059 pounds; EPG limited bills to 2,500

Summary

The report explains that UK wholesale gas prices climbed after Russia cut energy supplies to Europe following the invasion of Ukraine. As a result, the energy price cap for a typical household jumped by more than 2,800 pounds, from 1,216 pounds in winter 2021/22 to 4,059 pounds in winter 2022/23. The Energy Price Guarantee, however, held typical household bills at 2,500 pounds during this period. The report uses the case to show how supply chain disruption can have far-reaching effects. During the COVID-19 pandemic, lockdowns, shipping delays and slower production likewise caused major supply shocks and price spikes. The report regards supply chain disruption as a particular concern for critical sectors such as health and defence.