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Specification:

  • Demand and supply, market failure, price ceilings, government regulation, environment

Click to read the article below and then answer the questions:

Boris Johnson warns of UK energy price shock

  • ‘His comments came against a backdrop of steep rises in energy prices in recent months, in part because of Russia limiting gas exports to western Europe.’ Using a diagram, analyse the cause of rising energy prices

  • ‘Ofgem, the regulator, earlier this month raised the price cap.’ With reference to wholesale energy prices and retail energy prices, explain the purpose of the price cap

  • ‘Britain is tied to international markets, so it has to pay more when there is strong demand or concerns over tightening supply.’ Using a diagram, analyse the effects of these demand and supply-side concerns.

  • Evaluate the UK’s options for reducing its exposure to global gas markets

Gavin Clarke, Emmanuel College

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