General Question

omtatsat's avatar

Is the UK headed for tough times?

Asked by omtatsat (644points) 1 week ago
8 responses
“Great Question” (0points)

Considering the price of gas has gone up by 50% and consumer’s are expected to have a 30% increase in energy costs. Is the EU punishing the UK because they exited the EU?

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Caravanfan's avatar

Well, I don’t see the EU as punishing the UK. It was a totally predictable outcome based upon the economics. Everybody saw it coming. It’s just sad.

JLeslie's avatar

I agree it was predictable that the UK would have some economic hardship exiting the EU. The UK had to renegotiate trade deals, and there was bound to be some seen and unforeseen difficulties with the change.

Does the UK mostly have governments or private industry supplying energy for houses and buildings?

rebbel's avatar

How would that be, the EU punishing the UK?
The Europeans are going to face much higher energy costs as well, because, simply, gas (delivery) prices have skyrocketed.

As a by the way; the EU didn’t want UK out, rather the UK wanted out themselves (that is, a portion of the people).

elbanditoroso's avatar

The UK is suffering because of matters of their own doing. Brexit was asininely stupid. 90% of Britain’s troubles are as a result of that horribly misguided, but populist function.

Let them stew in their own juices. I remember when Britons were considered intelligent.

flutherother's avatar

It looks like we are headed for tough times but it isn’t because the EU are punishing the UK. It’s a combination of factors; the increase in the price of gas, Covid19 and the costs of the lockdown etc and Brexit.

Overall there was a very narrow majority in favour of leaving the EU and in Scotland a large majority in favour of remaining. I agree that voting for Brexit was stupid and it wasn’t properly thought out by anyone. For example no one seems to have realised how much the country depended on European lorry drivers. Now they are no longer working the supply chain delivering to supermarkets etc is at breaking point.

Most stupid of all is the Northern Ireland Protocol that ensures there will be no customs posts along the Northern Ireland border. This was drafted by the UK and signed with the EU and is a legally binding document. Now, just a few years later, Lord Frost, who drafted the agreement says it is unworkable.

@JLeslie Private companies supply energy to homes in the UK however the government regulates the price they can charge through a price cap. This has forced some smaller energy companies out of business as they have been unable to pass on increases in wholesale prices to their customers.

JLeslie's avatar

@flutherother Interesting. A shame it drove some of the smaller companies out of business. Did the big companies buy them up? Maybe the government could have subsidized the companies somehow.

I’m assuming the private companies are profit driven?

I googled a little and I guess there are a combination of things happening. It said there wasn’t as much wind, so the energy from wind was in lower supply, and that natural gas was in shorter supply right now also. Hopefully, it will be a mild winter there, and not much need for heating.

flutherother's avatar

@JLeslie Customers of the companies that went bust have been transferred to larger companies along with any credit they have built up. Manufacturers that use a lot of energy, like the steel industry, are also having problems.

SnipSnip's avatar

Yes to the first question. No to the second.

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