The UK power sector faces another rocky period with a price surge related to the Russian invasion of Ukraine.
That’s one of the findings of a new report by the provider of independent credit ratings SP which suggests the war in Ukraine will have a strong impact on global wholesale prices, eventually resulting in even higher energy prices in the UK.
The authors of the report on the future of UK utilities noted that the high and volatile prices will test the resilience of power producers and energy suppliers this year.
Energy companies are also predicted to face an increasing risk of political intervention amid households’ rising energy bills, according to the study.
The analysis also found that the UK’s biggest emitter of greenhouse gases, the power sector has cut emissions by about 70% since 1990.