Europe's gas consumption has fallen by an unprecedented amount due to it not being supplemented by other sources following Russia's invasion of Ukraine - and as a result, it could lead to an increase in UK bills.

Gas from Russian pipelines accounted for more than a third of our gas in the years before the invasions, so without this supply, the UK and the rest of Europe need to source that gas or learn to live without it - which doesn't look like it will be the case shortly!

The thought is that Europe has made up this shortfall from elsewhere, such as more methane from countries like Azerbaijan and liquefied natural gas from countries like the US and Qatar.

However, the data paints a worrying picture. In the year 2024, the amount of gas Europe had via these additional sources was only up 0.5% compared with the 2017-2021 average that covered the periods before Russia's invasion.

Given the amount of gas coming in from Russia has fallen by 37% over the same timescale, this is a pretty worrying statistic. In a nutshell, Europe's total gas consumption has fallen by an unprecedented amount without being supplemented from elsewhere.

Thanks to Economics and Data Editor, Ed Conway, you can read the full breakdown of the figures in an article on the Sky News website.

The analysis points to a common understanding as to why wholesale gas prices are rising. Although the UK does not receive any gas directly from Russia, as we're involved in the market, any shortfall affecting Europe is having an impact on our gas prices.

Prices are lower than the highs of 2022 but are currently at their highest level since the spring of 2023 - but it's reason to believe that bills could be heading up in the near future.

Source: You can read the full article online at Sky News.

The Honest Opinion

"The aftermath of the energy crisis is still being felt by UK businesses. With gas wholesale costs predicted to rise it is vital that businesses have an action plan and are looking forward and fixing their energy in advance to stop the impact of future price increases. This is at the forefront of what we do at Honest Utility Group."

- Arran Quinn, Corporate Account Manager and Energy Consultant at Honest Utility Group

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