Electricity prices are rising in many countries due to increased oil and gas prices. The war in Ukraine is one reason, but there are other reasons as well.
A) Global inflation; B) increase in oil prices due to the war in Ukraine and the greater uncertainties arising from Russian supplies; and C) increase in US interest rates that pull interest rates from other countries.
Dear Temitope Adefarati
A dramatic spike in both international and domestic coal prices as a result of the current Russian-Ukrainian war is the reason for rising input costs for independent power producers and power distribution businesses.
Dear Temitope Adefarati . This because the supply and demand on the global wholesale market increased. This has driven up the amount providers pay for gas and electricity - and so that cost is now being passed onto the consumer. See the link: https://www.google.com/amp/s/www.bbc.com/news/uk-northern-ireland-58558645.amp
Kindly see also the following useful link: https://www.eia.gov/energyexplained/electricity/prices-and-factors-affecting-prices.php
Also check please the following useful link: https://www.google.com/amp/s/www.bbc.co.uk/news/business-58090533.amp
The following link is also very useful: https://www.bonkers.ie/blog/gas-electricity/why-are-energy-prices-increasing/
Visit also the following useful link: https://www.google.com/amp/s/www.nytimes.com/2022/05/03/business/energy-environment/high-electric-bills-summer.amp.html
The war in Ukraine does not dramatically alter energy supply and demand. However, it changes the pattern of energy trade due to the imposed sanctions. This war only add a little bit to the already high energy price through cost of transportation. Prior to this war energy demand suddenly increased as economic activities resumed after Covid-19 restrictions were relaxed. This sudden increase of demand contributed the largest part of the current increase of energy price.
The increase in the cost of electric power is probably due to the dollar, in addition, due to the rise in prices of copper and aluminum minerals in the international market.
Its due to security concerns. When Russia stops gas supply to Europe, Europe will need an alternative energy source. The traditional source has been fossil fuels. When there is a gretaer pull for fossil fuels, the price rises (supply and demand) and the cost of generating power will also rise. The generators then pass the cost over to consumers.
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