As freezing temperatures sweep through the nation, has the energy war in Russia left us all out in the cold? And will we be faced with higher energy bills? It was just a glimmer of a hope, but it was a hope all the same. Scottish Power’s recent decision to cut the cost of one of its fixed-rate gas products by 10% led to speculation that other suppliers would quickly follow suit.

Lower energy bills at last, perhaps? But alas, it was not to be.

Amid an energy dispute between Russia and Ukraine, Russia decided to cut off all gas supplies to its neighbour, causing major supply disruptions across Europe. And leaving us all to wonder what impact it will have on us.

Just three years ago, Russia and Ukraine were caught up in a similar gas row which lasted four days and resulted in utter turmoil for European gas supplies. Worryingly, the current dispute has already lasted longer than this.

Gas markets have reacted nervously to the latest news, and wholesale prices have started to rise. This, in turn, could affect how much we pay for our energy in the UK.

What will happen to our energy prices?
Much will depend on how long the dispute lasts. The longer it drags on for, the slimmer the chance of lower gas and electricity bills. After all, the row provides a convenient excuse for utility providers to hold onto their margins and keep prices high.

Some utility providers had previously indicated that energy prices would start to come down in the new year. But this was conditional on further, sustained falls in the wholesale price of energy, and that’s now looking less and less likely.

While I don’t think prices will go up, any move by suppliers to lower their prices is now likely to be postponed. Exactly how long this delay might be is anyone’s guess, but I don’t think we’ll see any change until the spring at the very earliest. Even then, price cuts may not be as great as initially hoped.

Energy Secretary Ed Miliband has tried to offer some reassurance, reasoning we shouldn’t worry about our gas supplies as they can be obtained from a range of sources.

But even if our supplies aren’t affected, wholesale prices may still go up, preventing energy providers from lowering their prices.

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