Ben van Beurden said it would be a “really tough winter in Europe”.
“We will all face a very significant escalation in energy prices. In the worst case, Europe will have to rationalize its energy consumption,” said Ben van Beurden at a spring conference in Oxford.
Factors blamed for the continued rise in wholesale energy prices include continued uncertainty over Russian gas flows to continental Europe, as well as concerns over a strike by Norwegian gas workers and the UK’s continued reliance on energy imports.
Van Beurden said there was “no way of telling” whether Russia would restart gas deliveries to Europe via the Nord Stream 1 pipeline after the overhaul began on Monday and is due to end on July 21.
“Putin surprised a lot of us. I feel disappointed by the results. He showed that it is better to take him seriously when he threatens… For a long time we thought that it was not in Russia’s interest to cut off the largest Russian market. He is capable and willing to stock up.” stated the director of Shell.
The average household energy bill in the UK is estimated to reach more than £3,300 a year this winter, more than double the same time last year – as rising wholesale energy costs are passed on to consumers.
Last week, research firm Cornwall Insight significantly raised forecasts to show the UK energy price cap is on track to rise to £3,244 a year in October 2022, in the next quarterly adjustment by regulator Ofgem.
In October 2021, the default tariff cap, which adjusts in response to changes in wholesale prices, was £1,277 a year. By January 2023, Cornwall Insights expects another three-month increase in annual household energy bills to £3,363.
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