The Past Year In The Grip Of An Energy
Crisis Households Across The Continent
Have Been Encouraged To Save On
Electricity This Winter But In Britain
That's Just Been Taken A Step Further
Families Are Now Being Paid To Cut Their
Energy Usage
Alexa's Kitchen Lights Off
P.m In This English Home Is An Ideal Time
To Switch Off As Many Lights And
Appliances As Possible, I'm Going To Save
Some Money On My Energy Bills I'll Get A
Credit Back On My Octopus Bill, But The
The Main Thing Is To Try And Help The
National Grid So We Don't Have To Turn
On Any Co-powered Fire Stations Today I
Think It's Really Important That As
Consumers, We Don't Just Flick Switches
On We Prepare To Turn Them Off As Well
Sarah's Participation Helps Ensure That
Demand For Electricity Doesn't Exceed
Supply Great Britain's Energy Companies
Warn That Blackouts Are Possible
Especially If Russia Cuts Fuel Supplies
To Europe Against The Backdrop Of Rising
Prices For Food And Services Would
Make Things Even More Difficult For
Families Like Hers That's Why Sarah And
Her Children Are Happy To Cooperate With You
Might Not Be Using Those Things At The
Time And Sometimes You Leave Them On And
You Might Not Be Using Them And You
Devices While Mom Lights A Candle
Downstairs
Well, Let's Discuss The Situation In The
UK, Further With Kai Neufeld, He's Head Of
Forecasting At The Center For Economics
And Business Research In London Thanks A
Lot For Joining Us On The Program Kai
And We See People Being Paid To Use Less
Energy In The UK, It Seems Pretty Extreme
How Serious Is The Energy Situation Over
There
Well, This Is More Of A Preventive
Measure Than Really An Emergency So What
National Grid, The Grid Operator Herein
Great Britain Is Trying To Do Is Balance
The Supply And Demand For Energy And It
Is Judged That At The Moment We Have A
A Situation Where There's Very Little Wind
The Energy It's Very Cold, So People Use A
A Lot Of Energy And They Judge That It's
Um You Know A Good Idea To Pay People A
A Bit Of Money To Use Less Energy
Um But In A More, You Know Urgent
The Emergency Situation There Would Be Coal
Power Plants As Well On Standby So It's
Not Really A Risk Of A Blackout, It's More
Precautionary Measures People Seem Very
Grateful To Get This Money Actually For
Turning Off Their Kettles And
Their Lights After 5 P.m But Um That's
Because There Are Various Other
Challenges Facing Brits At The Moment
Mainly Financially Aren't There
Yeah, Certainly Um The Financial
The Situation For Households In The UK, Is
Quite Dire
Um As Everywhere In Europe, Um In The
In The Western World, We Have Very High
Inflation Even Thought It Has Ticked Down
For The Past Two Months, But It's Still
Above 10 Percent
Um, That Inflation Is Really Felt By
People In The Weekly Shop, Its Food
Price Inflation
Um Energy Prices As We Spoke About That
Are Really Impacting Uh The Disposable
Income That People Have On Top Of That
You Also Have Interest Rates Going Up
And In The UK, We Have Uh Two Million
Households That Will Roll Over Their
Mortgage Contract This Year And They
Will Find That They Will Have To Buy
They Won't Have To Pay Much, Much
Higher Interest Payments In The Future
So There's Really A Squeeze On
Households At The Moment
And As For Businesses, There Are Data
Published On Tuesday That Showed A Drop
In Business Activity In The UK, This
The Month That Actually Compares With A Rise
What's Been Seen In The Eurozone Is The
UK, Or Is There A Feeling In The UK, That
It Is Struggling A Little Bit More Than
Its Neighbors Over In Europe
Yeah, I think, For The Past Month It's
Always Been A Little Bit Neck On Neck
We've Seen A Little Bit Of A Recovery, Um
Towards The End Of Uh Last Year, Both In
In The Eurozone And In The UK, Now This
Morning's Figures As You Said Um Show
That The UK, Has Fallen Back In January
Especially The Services Sector
Underperforming
Um So This Does Contrast So It's Been A
A Little Bit Of A Mixed Bag In Terms Of
Economic News We Had Consumer Confidence
Ticking Up From A Low Base, But It Is A
A Little Bit Too Early To Tell Whether The
You Know The UK, Will Be, Able To Turn The
Corner Whether The UK Will Be, Able To
Escape Recession I Think Our Base Case
Scenario Our Kind Of Central Forecast
The UK, Economy Is That It Still Will
Enter Recession In The First Half Of 2023.
Okay, Kai Neufeld From The Center For
Economics And Business Research, Thank
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