Energy prices are not just rising, they are soaring and they are volatile - with major implications for building managers and owners. So, what’s the extent of the problem around the world?
Australia
Australia has experienced a clear upward trend for electricity prices over the long-term. They've rocketed over 215% since 2010 and have nearly doubled since 2020. With inflationary pressure persisting, Cornwall Insight experts forecast that these high prices are here to stay until at least 2026.
United Kingdom
Meanwhile, energy spot markets in the UK mirror this trend. Since 2010, electricity prices have surged by 95% and gas prices by a staggering 130%. But what's particularly unsettling is the recent market volatility. This culminated in an extreme high last August when prices peaked at an astonishing 764% and 560% more than a decade prior for electricity and gas, respectively.
United States
Here in the States, electricity prices have increased by more than 22% since 2013, and 12% over the past 3 years in what has been a highly up-and down market. Gas prices have seen even more dramatic increases, jumping by 102% since 2009 and 97% since 2020.
So, what does this mean for owners and managers of commercial buildings? The writing is on the wall: energy efficiency is no longer an option, but an imperative, with the built environment accounting for 30% of global consumption.
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Sources:
- Australia: National Electricity Market - Average electricity prices
- UK: Office of Gas and Electricity Markets - Wholesale market indicators
- US: U.S. Energy Information Administration - Average Price of Electricity to Commercial Customers; Gasoline price fluctuations
