Consultants note that the energy crisis could impact businesses for up to ten years whilst solutions to tackle soaring prices are formulated.
The study points out that certain industries brace to pause production amid the crisis.
It notes that high energy users are most exposed – industries, including paper manufacturing and fertilisers have already begun the process of plant closures, with other businesses focussing on ‘end of day’ shutdown procedures, designed to limit lighting and heating to slash costs.
Rob Turner, Sector Leader for Energy and Resources at PwC UK. said: “There is a physical supply problem across Europe and a demand-side response – i.e. lower consumption – is the only way to get through the immediate challenge, while in the interim, governments move to protect business and consumers with direct intervention on prices.
“At this stage, though, the supply problem remains – so the huge cost of these interventions risks continuing to accumulate at alarming levels.
“The UK has more resilience to physical supply compared to some European markets, notably through options to import LNG. However, any further physical shortage of gas at a European level may see a further need for ‘demand side response’, with industry output being affected.”