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Global energy prices double

A war overseas doubles the wholesale gas price. Where does the cost land?

Stylised external shockA stylised shock used to trace where imported pressure lands.

The verdict

Overseas pay 50p of every £1 of pressure. Households gain 25p.

50pof every £1 of pressure lands on Overseas

Where the pressure moves

The £1 pressure trail

Live — computed from the ledger, not a graphic
Scenario pressure diagram: Overseas pay 50p of every £1 of pressure. Households gain 25p.£1£1£1Overseas50pHouseholds+25pBusinesses+25pCentral Bank
Green trails = cash / relief received. Red trails = pressure absorbed. Every £1 has to land somewhere.Every £1 of pressure · rebased to 100p

How to read this — three tiers

LedgerReal cash, deposits or reserves move between actors. Conservation-checked.
ValuationExisting assets are marked up or down. No cash changes hands, but balance sheets move.
IndicatorA directional pressure gauge only. Not a cash movement and not a balance-sheet entry.

Who gains

  • Households+25p
  • Businesses+25p

Who pays

  • Overseas50p

What it means for one person

Ahmed

runs a bakery in Bristol, gas-fired ovens

His energy bill more than doubles. He passes some through to bread prices, absorbs some as margin, and postpones a hiring plan.

The context

Energy shocks aren't policy — they're weather from outside. But the way they propagate through UK households, businesses, and the trade balance is a policy question.

Explore further

Change a lever. See how the trail moves.

Sources

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