Brace yourself for the return of rationing. Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will thrive?

7 comments

1. The second time in a generation that the UK has imposed sanctions on itself

2. There won’t be rationing. Agriculture is pretty existentially safe against a short term problem with gas supplies (unless it gets bad enough to restrict fertiliser manufacturing, which it won’t – prices will just go up).

   What it will do, once again, is fuck the poor hardest. The higher the percentage of your income that is devoted to unavoidable costs like housing, heating and food the less you can cut back on. Middle class people may have to cut back on discretionary spending (which will hit hospitality, just what they need post-covid) but state pensioners, benefits recipients of all kinds (disabled, out of work, whatever) and those just about managing will be in serious trouble.

3. It will happen across Europe. Norway will be reluctant to export gas and France’s nuclear plants are not looking great, to the point it will be every country for itself this winter. We do not have storage facilities either, so it is not like we can save it over the summer for later. It will be interesting to see how the government gets this message to the people, because that will determine how the new PM starts their career.

4. Cheap energy?

5. If you are a homeowner and can afford the £5-8k to add some solar panels and a small battery to your house, for the love of god do it. You will not regret it, even if its too late to benefit this year, you will be glad of the energy next summer.

6. Seems reasonably sound advice.

7. Prices already escalating like mad, and there’s no real shortage yet nor price increase from Russia.
   All because Russia has kicked out the private central bank’s and wants products sold in Rubles or gold (gold standard currencies) not $$