A day hardly passes at the moment without a headline related to energy.
Data from the Office for National Statistics reveals that gas prices have increased by 926% compared with February 2020 (pre-COVID-19).
Energy prices increased with the lifting of COVID-19 restrictions and further rises followed Russia’s invasion of Ukraine. Cost escalation is affecting all parts of life — contributing to the spiralling cost of living, impacting production and requiring colossal government support.
The UK government’s Energy Price Guarantee is intended to cap a typical household’s energy bill at £2,500 a year and is expected to cost a similar amount to the Coronavirus Job Retention Scheme and Self Employment Income Support Scheme, which totalled £98 billion. The Institute for Fiscal Studies estimates that the policy “could easily cost over £100 billion in the next year alone, with more to come in the following year”.
These issues have highlighted the importance of investment for energy security. Record-breaking temperatures over the summer showed the need to move away from fossil fuels to achieve net zero carbon targets.
Due to the scale of the impacts, the energy sector is against the clock to deliver projects quickly and resource-efficiently.
Read our report to see how good procurement can help overcome the challenges and find out more about what part private investment and collaboration will play.