Avro Energy and Green have been the latest two gas firms to collapse due to the UK gas crisis, bringing the total number of homes that have lost their gas supplier to nearly 1.5m in just two weeks.
Overall four suppliers have now gone bust this year and four more are expected in a number of days. Gas firms are collapsing due to the skyrocketing gas prices which have been affecting the whole gas sector.
Gas prices have increased 250% since the start of the year, and 70% in August alone.
Boris Johnston stated at a conference in America today that it is due to the economy picking up whilst coming out of the pandemic, which has created issues for gas supplies.
The factors that could have contributed to the gas crisis are, the cold winter in lockdown and people spending more time at home, therefore, using more gas for heating.
Another is, Asia’s usage of gas increased last January 2021, therefore, more gas was being directed there instead of staying in UK’s reserves.
Lastly, another factor could be because that The Nord Stream 2 pipeline which transports gas has been deemed not fit for use yet.
But what about renewable energy? The UK government states that the UK is too reliant on fossil fuels and that renewable energy is not yet ready to fill the gap.
What has this done to precious metal prices?
The Gas Crisis Affect on Gold Prices
Gold spot prices dipped by £23.94 an ounce following the announcement of the two latest gas suppliers collapsing. Gold hit its highest price of £1,297.72 during the day before shooting down and bottoming out at £1,271.53 per ounce.
The Gas Crisis Affect on Silver Prices
Silver spot prices sank by £0.14 an ounce following the announcement. Silver’s highest price that day was at £16.72 before shooting down and bottoming out at £16.46 an ounce.