UK energy crisis could surpass 2008 financial crash

The 2022 energy crisis could be more serious for the UK than the financial crash of 2008. This is reported by the consulting company Baringa Partners.

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Analysts predict that the upcoming winter increase in electricity prices will be three times higher than a year earlier. This, according to experts, will lead to a reduction in the consumer budget.

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“The societal impact will be greater than the 2008 crash in terms of impact on households. We are approaching a state where most of them are in debt or in very precarious financial situations,” said James Cooper, spokesman for the company.

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According to the publication, it is predicted that from October 1, the average annual electricity bill will exceed £3.5 thousand (about $4.2 thousand). In addition, analysts point to an increase in the debt burden of the British even in the summer. As a rule, at this time, citizens pay off their winter debts, but now the situation has changed due to rising energy prices.

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“There is a fear that people will not be able and will not pay, and the number [of such citizens] will grow very quickly. This could lead to a domino effect on small electricity providers and bankrupt them,” added analyst John Musk.