Putting on a Martin Lewis-esque Money-Saving-Expert hat, it’s clear UK residents need to find a way to hedge against hefty energy price increases. The Resolution Foundation think tank forecasts each household will have to cover £1,000 or more as a result of higher energy costs and National Insurance contributions in 2022.
Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points
- Earnings boosted by gas prices
- 100 per cent of cash flow from keyfields now going to Serica
- New fields just come on stream
- Net cash position
Bear points
- Fast-rising gas prices
- Unpopular industry
For investors, options include the traditional indirect hedges against inflation, such as gold and copper, or even the non-traditional and untested ones like of cryptocurrency or non-fungible tokens (NFTs). But these unconventional options involve taking on lots of risk and joining an ecosystem that is divorced from the macroeconomic dynamics.