The recent surge in oil and gas prices has sparked a familiar yet unsettling memory for many Britons: the energy crises of the 1970s. However, the situation today is not as dire as it once was, thanks to significant improvements in energy efficiency and a shift away from heavy industry. The UK's energy intensity has decreased by 70% since the mid-1970s, which means that even with a prolonged rise in energy prices, the economy should not suffer as severely as it did in the past. But while the UK may be less exposed to the impact of higher energy prices than some of its peers, the reality is that the oil and gas price surge is still having a dire impact on the country. One of the main reasons for this is that the UK's electricity prices are higher than those of its peers. The average price per megawatt hour for electricity in the UK in April was $110.56, compared with $92.89 in Japan, $88.98 in Germany, $44.19 in France, and $26.48 in the US. This is partly due to the UK's 'marginal pricing' system, which sets the price for all generators based on the most expensive source of energy brought onto the grid. This has led to windfalls for other generators, including renewables operators, not on fixed contracts. The government, which is pushing for net zero, has announced plans to try and break the link between gas and electricity prices. However, energy-intensive businesses are still suffering. Denby Pottery, one of Britain's best-known producers of china and tableware, went into administration in March, blaming high energy and labour costs. The government is spending more than £1 million per day to keep British Steel, the country's last producer of virgin steel via energy-intensive blast furnaces, alive. Consumers are also feeling the pinch. Households already owed more than £4.4 billion to energy suppliers by June 2025, with one in four reckoned to be in arrears. As Ofgem allows suppliers to recover a proportion of debt costs from all billpayers, it means other customers end up paying more. With higher energy costs also fuelling inflation more broadly, there are signs that Britons are already starting to save more in anticipation of higher bills. This does not bode well for consumer spending in the coming months. Retailers J Sainsbury, Shoe Zone, and WH Smith have issued profit warnings since the war on Iran began, as have a clutch of housebuilders, including Crest Nicholson, Taylor Wimpey, and Berkeley Group. The UK's exports to the US have also taken a hit, plunging by 25% after Trump's 'liberation day' tariffs blitz. While UK exports of goods have stayed low, imports of goods increased at the start of 2026, leading to a trade deficit with the country's largest trading partner for three months in a row. The UK government plans to allow airlines to consolidate flights as jet fuel costs soar. The temporary measure would allow carriers to consolidate schedules on routes with multiple flights to the same destination on the same day. Trump has also scrapped Scotch whisky tariffs 'in honor' of King Charles. The Scotch whisky industry employs around 40,000 people in Scotland, where whisky accounted for 23% of all goods exports in 2025. The sector is also a major purchaser of used bourbon barrels from the US. In conclusion, while the UK may be less exposed to the impact of higher energy prices than some of its peers, the reality is that the oil and gas price surge is still having a dire impact on the country. The government's plans to break the link between gas and electricity prices may help, but it will take time to see if these measures will be effective. In the meantime, businesses and consumers are feeling the pinch, and the outlook for consumer spending in the coming months does not look good. Personally, I think that the UK's energy crisis is a stark reminder of the importance of energy efficiency and the need to move away from heavy industry. The improvements in energy efficiency since the 1970s are a positive step, but there is still much work to be done to ensure that the UK is prepared for the future. What makes this particularly fascinating is that the UK's energy crisis is not just a local issue, but a global one. The surge in oil and gas prices is affecting countries around the world, and the impact is being felt in a variety of sectors, from manufacturing to transportation. In my opinion, this crisis highlights the need for a global approach to energy efficiency and the need to work together to find solutions that will benefit everyone. From my perspective, the UK's energy crisis is a wake-up call for the world. It is a reminder that we need to take action now to ensure that we are prepared for the future, and that we need to work together to find solutions that will benefit everyone. One thing that immediately stands out is that the UK's energy crisis is not just a result of higher energy prices, but also of the country's 'marginal pricing' system. This system, which sets the price for all generators based on the most expensive source of energy, has led to windfalls for some generators, while others struggle to keep up. What many people don't realize is that the UK's energy crisis is not just a local issue, but a global one. The surge in oil and gas prices is affecting countries around the world, and the impact is being felt in a variety of sectors, from manufacturing to transportation. If you take a step back and think about it, the UK's energy crisis is a symptom of a much larger problem: the world's dependence on fossil fuels. This raises a deeper question: how can we move away from fossil fuels and towards a more sustainable future? A detail that I find especially interesting is that the UK's energy crisis is not just affecting businesses and consumers, but also the country's exports. The plunge in UK exports to the US and the increase in imports have led to a trade deficit with the country's largest trading partner for three months in a row. What this really suggests is that the UK's energy crisis is not just a local issue, but a global one. It is a reminder that the world is interconnected, and that the impact of one country's crisis can be felt in many others.
