Energy rationing in Europe is a possibility this winter, according to the boss of Shell. Speaking at a conference in Oxford, Ben van Beurden said a "really tough winter in Europe" was coming with energy prices set to keep rising.
Speaking at the Aurora Spring Conference in Oxford, Mr van Beurden said: "It will be a really tough winter in Europe. Some countries will fare better than others but we will all be facing a very significant escalation in energy prices." He refused to rule out the possibility of rationing, according to the BBC.
France’s three energy companies are already urging people to immediately reduce consumption of fuel, oil, electricity and gas amid shortages and soaring prices due to Russia’s supply cuts and the war in Ukraine.
The bosses of TotalEnergies, EDF and Engie said in a rare joint statement: “The effort must be immediate, collective and massive. Every gesture counts.”
Russia has cut – and in some case shut off – gas supplies to several European Union countries in retaliation for the bloc’s sanctions against Moscow for its invasion of Ukraine.
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For months, the European energy system has been under severe strain, and the French system has not been spared. The level of alert on gas stocks across the continent is high and rationing measures have been put in place.
France, like other European countries, is trying to beef up its gas reserves for winter, aiming to fill up its storage by early autumn to avert an economic and political crisis.
“Taking action in the summer will prepare us for winter,” the energy companies’ leaders said.
In addition to the gas supply shortages linked to the war in Ukraine, there are pressures on electricity production capacities in Europe and reductions in hydroelectric production due to drought.
“The soaring energy prices are a result of these difficulties that threaten our social and political cohesion and have a heavy impact on purchasing power of families,” the statement said.
Meanwhile, Ofgem has told a number of energy suppliers in the UK to take “immediate and urgent action” after finding a range of weaknesses or failings in the way they charge customers direct debits. The regulator found five suppliers – Ecotricity, Good Energy, Green Energy UK, Utilita Energy and TruEnergy – had moderate to severe weaknesses ranging from inadequate processes to an overall lack of a structured approach to setting customer direct debits.
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