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Boris Johnson’s energy crisis in the UK

Inflation and rising energy prices are upending democratic politics around the world, and Britain is a prime example. But as the rest of Europe takes energy policy seriously in the wake of Russia’s invasion of Ukraine, British Prime Minister Boris Johnson is sinking further into the clouds.

British households and businesses are in the grip of an energy price crisis, mainly due to London. Households saw the regulatory cap on their electricity and natural gas increase by 54% on April 1, and price increases for commercial premises and industries were even steeper. This is partly due to the rapid rise in global natural gas prices, which has driven some retail energy providers out of business. But levies and subsidies on green energy, as well as UK consumption tax or VAT, play an outsized role.


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