What's behind the energy crunch - and why it's hurting UK industry

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Economic predictions are often fraught with risk, but here's one that feels quite safe: the fertiliser company which has just shut down production at two of its UK plants will not be the last business to do so writes our economics editor EdConwaySky

Russia seems to have been stifling supply in recent months.

The final straw came earlier this week when one of the two electricity interconnector cables that brings power from France to the UK was damaged in a fire, putting it out of actionPut it all together and perhaps it's no surprise that energy prices - whether that's gas or electricity - are so high at the moment.

However, industrial energy users tend to be more sensitive to these price shifts, which is why many are already closing or reducing production. One such consequence of the closure of those fertiliser plants is a sudden shortage of carbon dioxide gas - a byproduct of their processes.

 

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