The Shell boss has today (Thursday) warned of possible energy rationing in Europe this winter to cope with the global crisis. Ben van Beurden told the Aurora Spring Forum conference in Oxford they are facing a "really tough winter in Europe".
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.
The three energy companies operating in France have already urged people to reduce their consumption of fuel, oil, electricity and gas immediately. It's all against the backdrop of shortages and soaring prices due to Russia’s supply cuts and the war in Ukraine, reports NottinghamshireLive.
The bosses of TotalEnergies, EDF and Engie said in a rare joint statement: “The effort must be immediate, collective and massive. Every gesture counts.”
Gas supplies to several European Union countries have been cut – and in some cases shut off – by Russia in retaliation for the bloc’s sanctions against Moscow for its invasion of Ukraine.
The European energy system has been under severe strain for months, 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. 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.
