00:00Naturally, there is a lot of concern around the situation in the Middle East, including the potential impact on consumers
00:06here.
00:06So I'd like to start by saying our thoughts and deeper sympathies are with everyone involved and those who have
00:12been affected.
00:13Now, I also know that many families and businesses will also be concerned about the impact this conflict will have
00:18on energy bills.
00:19And clearly, as we saw in the Russia-Ukraine conflict, our gas supply cannot be separated from global events.
00:26It's important to make clear that our energy supplies remain secure.
00:30Britain continues to benefit from a diverse gas supply, which provides the market with the flexibility it needs in times
00:36of disruption.
00:38In the short term, until the end of June, customers will be on fixed tariffs or protected by the price
00:43cap.
00:44Although we remain at the early stages of this conflict, if the Strait of Hormuz remains closed for a prolonged
00:49period of time,
00:50it is likely that this will create significant upward pressure on prices that customers will pay for their gas and
00:57electricity.
00:58For example, in electricity, gas still sets the price for the majority of the time.
01:03Now, I know already there is a great deal of speculation about the scale and extent of those price changes,
01:08but genuinely it is too early to tell.
01:11In my experience, gas traders find it extremely difficult to calibrate the sorts of risks we are facing
01:17and therefore market projections are not a reliable guide to the future.
Comments