Britain facing years-long energy shock even if war ends soon

Core Insights - Britain is facing a prolonged energy shock, with electricity prices expected to rise due to a global gas supply squeeze, regardless of the resolution of the conflict in Iran [1] Group 1: Price Forecasts - LCP Delta predicts wholesale electricity costs will increase by approximately 40% this year and 18% next year [3] - Gas prices are estimated to rise by an average of 70% compared to pre-conflict forecasts this year, with prices expected to remain 36% higher through 2027 [5] Group 2: Impact on Households and Businesses - Energy UK warns that household energy bills could increase by £250 annually starting in July due to the Iran conflict, urging the government to prepare support for those most affected [3] - The UK's subsea interconnector links to Norway and France may soften the impact on bills, as these countries rely on hydroelectric and nuclear power, respectively [6] Group 3: Supply Chain Concerns - Qatar, a major LNG supplier, has halted production at its largest facility due to Iranian attacks, with resumption expected to take weeks after hostilities cease [7] - A major gas field in the UAE was also shut down following an attack, further complicating supply dynamics [8] Group 4: Storage and Reserves - European gas storage levels are approximately 10% lower than last year, which may lead to sustained high prices as countries attempt to refill storage facilities amid ongoing geopolitical tensions [9]