Part of the reason the UK is experiencing such high gas prices right now is because of Brexit, and the UK leaving the Internal Energy Market.
There is not evidence that this is a significant factor in higher wholesale gas prices in the UK at the moment.
We’ve seen a number of claims on Facebook that high gas prices in the UK are in large part down to Brexit, and namely the fact that the UK has left the EU’s Internal Energy Market.
One says that in its coverage the BBC “forget to mention that prices increased as a result of brexit, and the UK is no longer in the EU’s internal energy market, which has kept prices in the EU low as prices in the UK soar”, while another claims it’s because “the EU have an internal energy market which subsidies wholesale energy rises, keeping prices low. Something we are no longer a part of because of Brexit”.
There is no evidence that leaving the EU is a major reason behind price increases felt in the UK.
Tom Edwards, a senior modeller at the energy market consultancy Cornwall Insight, told Full Fact: “Leaving the EU/Internal Energy Market is unlikely to be a significant factor in the high wholesale gas and power prices we are experiencing at the moment.”
Mr Edwards added: “Moving from implicit allocation to explicit allocation has caused some price divergence in both directions,” meaning the difference between prices here and in Europe fluctuates.
“Great Britain is constrained in how much it can import from the EU. So, more fundamental factors such as proximity to continental gas markets, storage levels, wind speeds, and interconnector availability (which would have been the same with or without the UK leaving the EU) are the most significant drivers of difference between prices.
“As well as this, gas prices in European markets are similarly high. The high prices are generally driven by international (and some regional) factors.”
On the reason for the UK price rises, Oil & Gas UK states: “The causes are global – European gas stocks are down, supplies from Russia have declined and there is strong demand for liquefied natural gas from Asia.”
The UK has reportedly suffered reduced wind, and several nuclear units are offline. Governments in other European countries are reportedlyconsidering measures to help consumers cope with increased costs of gas and electricity.
Kwasi Kwarteng MP, Secretary of State for Business, Energy and Industrial Strategy, told parliament in a speech on 20 September that high demand in Asia for a particular type of liquified natural gas meant less was reaching Europe and weather in the US had affected exports to Europe. Bloomberg reports this was because freezing temperatures in winter meant this type of gas went to Asia where sellers could get the best rates.
This article is part of our work fact checking potentially false pictures, videos and stories on Facebook. You can read more about this—and find out how to report Facebook content—here.
For the purposes of that scheme, we’ve rated this claim as missing context
because there isn’t evidence that Brexit and leaving the Internal Energy Market is the driving force behind increased gas prices.
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