Energy regulators Ofgem have warned that the UK may face gas shortages this winter.
The regulating body said that there is a "significant risk" that the UK will face a "gas supply emergency", which could impact electricity supplies. Ofgem made the claim in a letter revealed by The Times.
Ofgem said: "Due to the war in Ukraine and gas shortages in Europe, there is a significant risk that gas shortages could occur during the winter 2022-23 in Great Britain. As a result, there is a possibility that Great Britain could enter into a gas supply emergency."
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A "gas supply emergency" is when energy firms cannot supply enough of the resource to meet demand. It may mean businesses are asked to stop using gas for limited periods, in order to safeguard gas supplies to consumers.
This would lead to supplies being cut to power stations which use gas to generate the country's electricity. It places firms at risk of running out of money because of huge charges they pay if they cannot deliver electricity, according to the BBC.
SSE, which operates four gas-fired power stations in the UK that produce electricity, is concerned that operators of gas-fired power stations face millions of pounds worth of costs if they are unable to fulfil promises to supply electricity "caused by events outside their control". It is not clear if this could result in electricity blackouts or mean homes and businesses will face energy rationing this winter.
According to The Mirror, Ofgem said it predicted “this winter to be more challenging than last year” and was taking “reasonable regulatory steps to mitigate and reduce the risks”. In its letter, which was first reported in The Times, Ofgem said it would look at the issue of charges as a matter of urgency because it will have a "significant impact on the safety and security of the electricity system".
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