Russia invaded Ukraine in February 2022, a development that disrupted global energy markets and contributed to uncertainty around gas supply, particularly across Europe1. The invasion came after wholesale gas prices had already begun rising in early to mid 2021, creating pressure across the energy market1.
In solidarity with Ukrainians following the invasion, many European countries decided to cease purchasing oil and gas from Russia2. Until then, Russian supplies accounted for approximately 40% of the EU's oil and gas, meaning countries were forced to look elsewhere2. That shift added to a global supply and demand deficit that contributed to price increases and caused panic buying, furthering the rate of inflation2.
The effect on household bills was felt in stages. In April 2022 the energy price cap rose significantly, meaning many households saw a sharp increase in their gas and electricity bills1. In October 2022 the cap rose again, although the government's Energy Price Guarantee limited the amount many households paid per unit of energy1. After 2022, prices fell from their peak, but bills did not return to the levels seen before the crisis began1.
"Russia's invasion of Ukraine in 2022 disrupted global energy markets and contributed to uncertainty around gas supply, particularly across Europe."
The invasion was one of several pressures rather than the sole cause. Higher global demand after pandemic restrictions, Great Britain's reliance on gas for heating and some electricity generation, and supplier failures all contributed1. Several energy suppliers left the market in autumn 2021 as wholesale costs increased1. Gas accounted for around 22.6% of UK electricity generation in 2026, which is why changes in gas prices can still influence electricity costs1.
| Date | Price cap development |
|---|---|
| April 2022 | Cap rose significantly, with sharp increases in household gas and electricity bills1 |
| October 2022 | Cap rose again, limited by the Energy Price Guarantee1 |
| 1 January 2024 | Ofgem increased the cap by 5% to £1,928 per year2 |
| 1 April 2024 | Cap level of £1,690 per year for an average household paying by direct debit2 |
The two sources give different figures for the cap at different dates and do not cover the same periods, so they cannot be read as a single continuous series. Business energy prices are not capped2.
Why it matters for households
The invasion mattered to homes because it hit the cost of the gas used for heating and, through gas-fired generation, for electricity too1. A household's exposure to global events of this kind depends on how much gas it uses and how exposed its supply is to international markets. The national supply hub sets out how supply reaches homes, and how global events move UK energy prices explains the transmission from world markets to domestic bills. Supply arrangements differ across the UK, with separate guides to energy supply in Scotland, energy supply in Wales and energy supply in Northern Ireland.
The price cap limits unit rates and standing charges on default tariffs but does not limit a total bill, because the amount paid still depends on how much energy is used1. It is reviewed and updated every three months1. Ofgem's safety net means gas or electricity supply continues if a supplier goes out of business, with customers moved to a new supplier1. The Warm Home Discount offers eligible households a one-off discount on their electricity bill during winter; for winter 2025 to 2026, GOV.UK described this as a £150 discount for eligible customers in Great Britain1.
What happens next
The Energy Price Guarantee and the Energy Bills Support Scheme have now closed1. Cornwall Insight predicted the cap could fall to £1,463 in Q3 2024 before rising to £1,521 for Q4, starting in October 20242. No further dated steps following the invasion have been reported in these sources.
Sources2 cited
- Understanding the UK energy crisis | Smart Energy GB, smartenergygb.org
- Why are Gas Prices so High in the UK?, boxt.co.uk