Why are energy prices rising? - BBC News

Global energy prices are surging around the world. From heating or cooling our homes, to cooking our food, and making the products we buy, energy is at the heart everything we do and when prices rise we all pay for it.

There are a number of reasons for the spike. We explore the reasons why, how long the cost crunch will last, and what's being done to ease the burden on everyday consumers.

The BBC's Aaron Heslehurst explains.

#BBCNews

[jasonvegan]

Energy companies are greedy and will look to maximize profits whenever possible. Claiming “supply chain issues” whether they’re actually affecting the companies or not is a way to drive profits up.

[b.visconti]

Here in CA they are making us pay for their upgrades after the fires which were started by their faulty lines

[nihalshaikh]

Prices are not raised by russia, nor russia has decreased or refused to increase the supply of gas. The EU and UK are selling gas at 10 times more price to there domestic consumers, that's not the problem of Russia.

[karlphillips]

I don't have a problem with energy companies rising prices (if linked to ability to pay such as Council Tax Band), what I do have a problem with is them making excessive profits and giving it away to shareholders with no accountability because of their monopolies. The realisation that all countries now have to have more robust energy security will mean that energy companies will have to invest more in infrastructure, storage and surge for winter months, so we don't get in the pickle we are at the moment and get the crazy future hedging that affects our bills for months even after the holdsale price of energy come down. We need to make sure we are building safeguards for the future to stop this happening ever again, and look at other elements as well - food secirty, water security etc. What we can't accept is the price shooting up everytime there is an international issue, and energy companies making excessive profits for their shareholders at the same time. Caps need to be placed on energy prices, profits to shareholders and make it so energy companies start investing more in making their infrastructure and storage more robust and enduring.

[voicezful]

What is it with the BBC presently with every news report carring a question mark, you're supposed to be reporting the news not asking us.

[aa-fwpw]

I don't know how much help this will be, but for those struggling for food, try the following:
1) Stock up on long life cupboard foods such as lentils, rice, pasta, etc. Buy in bulk and feed yourselves for ages
2) Try buying frozen veg, works out cheaper than fresh
3) Invest in a pressure cooker, and cook with it as often as possible. It uses less energy and also preserves nutrients. Pretty much anything goes, rice, vegetables etc
4) if you have many mouths to feed, try making soups every now and then, and add water to increase it if necessary.
Good luck and I hope you all stay well

[Diwana]

Ms Smith does not tell that cheap Russian Gas was not being pumped into storage but was being reversed pumped to Ukraine to subsidize Ukraine against Russia. Hence Europe pays the bill now since there is no Gas in European storage now. And Russians would supply gas at the present market price only.

[josephjackson]

Boris on his own creates enough wind power for the whole of England

[Redpilled]

Nord stream 2 is a private investment collaboration between Germany and Russia, costing 10 billion to Germany with an energy input increase of 15% gas export to the continent, which is very needed for Germany and others. The U.S are sore because they wanted the monopoly of energy imports into Europe by charging higher prices and because Russian energy is cheaper, the U.S have sanctioned any company dealing with Russia in this sector and now threatening to shut down something they have not invested in or own because of their typical spiteful hegemony. This resulted in a shortage of energy on the continent, raising prices by energy companies and they are making a fortune at the expense of the consumer.

[HK.Builds]

Before this crisis we had 63 energy companies. We are now down to 27. There has been an enormous cost to the taxpayer, the cap will be lifted and the government was warned about this months ago. Brilliant time to be paying more tax and national insurance. The Incompetence this government has shown is astounding and the regulator allowing these business models to run unchecked is even worse. Now we will all suffer. This will not go away FYI. Long term power Contracts are already higher and being bought a year in advance meaning this is here to stay. Plus I'm not sure how much securing households who's providers went bust has cost the tax payer.

[FoodwaysDistribution]

Some facts, Russia has a long term contract with fix price to supply Europe, even if the price go up the price in the contract is what they get. Russia did more than double the supply to Europe but they find out that the German were reselling it at currant expensive market prices to Poland an Ukraine. Putin didn't like that

[NewLauri]

You are accusing Russia that it does not want to supply gas ABOVE the agreements - but is only Russia supplies gas in the world?

[davidlawrence]

They never lowered the prices a few years ago when wholesale prices of gas went down but eager to put up prices when gas price goes up an now gas prices has gone down a bit but they have not told us that but still want to fleece us out of money.

[voicezful]

Coal Gas and then North Sea gas in the UK was as cheap as chips and fuelled millions of homes at a fair price. Privitisation and greedy shareholders killed affordable energy for all.

[ronnysimon]

I stopped paying for electric. I cook with gas. I heat with firewood and I have 2 car batteries charged from my car to provide electric to small appliances and TV. I'm saving a fortune

[paulkeable]

Homes should be state owned energy thats one of things that shouldn't even be an issue.
Water and energy should be state own atleast for homes.

[jdelacruz]

The reason prices are going up is because they can charge whatever they want and you will have to pay it.

[edwardbernays]

So its Russia’s fault for “not selling you what you want..?”
And she forgot to mention the four LNG tankers that were on their way to Europe from America but got diverted to China because the Chinese offered the American LNG company a better price…!

[Faithng]

RECORD PROFITS BEING MADE AT OUR EXPENSE
The increases should not have taken place so very quickly & definitively not so steeply (GREED).
Why isn't Congress sounding the alarm about the unnecessary, extreme price hikes (GREED)? Who are the Congress members, state legislators & governors that are invested in these industries, especially in the ENERGY sector? Some politicians or their family members are on the boards of these companies that are price gouging and making huge record profits because of it & of course they're not tell the public about it; they'll just keep raking in the high dividends at our expense. Media doesn't seem to want to communicate these facts either, WHY NOT?
Let's CONSISTENTLY talking about BIG BUSINESS (big essential retail) & ENERGY COMPANIES' record profits during times of massive economic struggles for the MAJORITY population, but their CEOs are making millions in bonuses. Let's pay attention to these corporations' quarterly PROFITS going back to before pandemic to the beginning of 2022 & then beginning of 2022, every quarter for at least the next year; let's keep their RECORD PROFITS in the forefront of the consumers minds.

[colinwhite]

Still puzzled. Nobody is suggesting that gas is suddenly more expensive to produce, so if no more gas is being produced who’s pocketing the mountains of additional cash?