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The National (Scotland)
The National (Scotland)
National
Laura Webster

Downing Street insists people shouldn't panic over energy supplies

A man holding an umbrella enters 10 Downing Street. Photograph: PA

HOUSEHOLDS and businesses will not face blackouts this winter, Downing Street insisted as gas shipped from Australia was set to dock in the UK.

The Attalos gas tanker is set to pull into the Isle of Grain terminal in Kent, by the mouth of the Thames, during the day. It is believed to be the first cargo of liquified natural gas (LNG) sent from Australia to Europe in six years.

The squeeze on gas supplies in Europe has helped fuel rocketing inflation and driven up household bills, with analysts expecting the energy price cap to rise to £3554 in October.

But No 10 insisted that there was no risk to UK energy supplies and consumers should not panic.

Some of the gas on that Attalos is likely to be used in the UK straight away, but much of it will probably flow to Europe through the pipelines that connect Britain to the continent.

There it might be channelled into European gas storage sites and some of it could return to Britain during winter.

Concerns that shortages on the continent could jeopardise the supply of gas back to the UK were played down by No 10, which highlighted both North Sea production and the use of “reliable partners” such as Norway in ensuring homes could be heated and the lights kept on over the winter.

The UK has some of the highest LNG import capacity in Europe, but it has very little gas storage.

Therefore, much of the LNG that comes to Europe this summer will arrive in UK ports, but be shipped over to European storage sites.

A No 10 spokeswoman said: “Households, businesses and industry can be confident they will get the electricity and gas that they need over the winter.

“That’s because we have one of the most reliable and diverse energy systems in the world.”

She said people should not panic or feel they should cut down on energy use.

“These decisions, in terms of energy consumption, remain decisions for individuals,” she said. “But what I’m saying is that households, businesses and industry can be confident that they will have the electricity and gas that they need.”

But No 10 backed a plan being developed by the National Grid Electricity System Operator (ESO) which could see households with smart meters being paid for by turning off high-energy appliances such as washing machines during peak times to reduce the risk of blackouts this winter.

“We support the National Grid in developing all options which could benefit consumers and help to reduce bills by spreading out peak demand,” the spokeswoman said.

Ahead of Ofgem’s announcement of an increased energy cap, due on Friday, Chancellor Nadhim Zahawi (below) will meet bosses from generating firms including Orsted, Newcleo and RWE to discuss what more the industry can do to ensure markets function effectively for consumers.

Consultants Cornwall Insight forecasts that Friday’s energy price cap rise would see a typical household paying the equivalent of £3554 per year, with a further increase expected in January.

Speaking on Radio 4’s Today programme on Monday, Octopus Energy chief executive Greg Jackson said that if the price of beer had risen as much as gas prices, getting a pint would cost £25.

“People don’t know what a therm is, but, underneath it, the price per therm has gone from 60p to around £5 at the moment and that’s what’s passing through to customers if we don’t do something,” he said.

He added: “There are systemic issues. There are loads of questions of how we pay for this.

“One thing we can’t do is be expected to pass those costs on to consumers.”

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