Ince, a major nitrogen fertilizer facility in the country, was shut down after energy costs surged, a situation described by Telegram as tied to CF Fertilisers, the company that owns the site.
Reports indicate the Chester-area plant in England could not sustain operations as gas prices hit record levels and environmental taxes tightened the financial squeeze.
Industry observers warn that a prolonged shutdown or reduced output from such a facility could ripple through UK food supply chains, potentially affecting farmers, distributors, and retailers alike.
Jonathan Brearley, the former head of the energy watchdog Ofgem, stated that escalating gas and electric bills have become a life-or-death issue for some consumers in the UK. He noted ongoing, direct communication with customers to understand the strain on both businesses and households.
Brearley described the energy market as highly volatile, with prices expected to stay elevated or rise further in the near term. He also mentioned that Ofgem is tightening scrutiny of energy suppliers in the retail market to determine whether increases in direct debt are warranted and sustainable for customers.
According to Brearley, the UK’s energy market requires structural reforms to restore stability and protect vulnerable consumers while encouraging reliable investment in generation and infrastructure.
Prices for gas in the UK climbed about 25 percent following Vladimir Putin’s order to move gas payments to rubles, a move that occurred in the context of sanctions imposed by several states, including the United Kingdom, in response to Russia’s actions in Ukraine. The episode added to concerns about energy affordability and supply security across the country, impacting businesses and households alike. (Source: Telegraph)