In this piece, we take stock on where we now stand after a tumultuous period for the energy markets since Autumn 2021. But beginning, we want to give voice to the sadness our team feels at the terrible human impact arising out the conflict in Ukraine. This clearly is of much greater importance than the energy market effects we spend time as a business analysing. We offer comment on energy market impacts as one would expect us to, but always our thoughts and prayers are with those so badly affected by these terrible events.
Back in September 2021 we wrote a piece entitled “The stakes are higher than they seem”. We focussed on the rising costs of energy and argued that the government needed to map out the contagion of rising energy costs into the economy, and then try to put firebreaks in to ring fence the economic impacts. And in January 2022 we followed this up with more of a prospectus on the best way to re-think the market for an environment where it was clear, even prior to the commencement of the tragic conflict between Russia and Ukraine, that current market design and approaches to balancing energy security, markets, and decarbonisation were creaking somewhat “Wake up call”