The Impact of the 2022 Energy Crisis on UK Electricity Prices: Commodity Market Shocks and Implications for FinTech Risk Models

This paper examines the impact of the 2022 energy crisis on UK electricity system prices through the lens of financial markets and commodity risk. Using multiple regression analysis on high-frequency data, the study investigates how fluctuations in natural gas and oil prices, alongside macroeconomic uncertainty indices, shaped UK electricity price volatility during and after the crisis. Results show that natural gas prices were the dominant driver pre-crisis, while post-crisis dynamics elevated the role of Brent crude oil and geopolitical risk. These findings highlight how systemic shocks in commodity markets can transmit into financial markets and affect pricing mechanisms central to FinTech platforms, including trading algorithms, risk management tools, and energy-linked financial products. The paper contributes to the growing literature on financial technology by demonstrating the role of data-driven models in enhancing resilience and pricing accuracy during commodity-driven crises.