Energy regulator Ofgem is warning the UK is at "significant risk" of gas shortages this winter. The Times has revealed a letter sent from the organisation that raised concerns of "gas supply emergency" measures to help preserve stocks.
They are blaming the impact of Russia's war in Ukraine which has meant that Europe has been starved of its main source of natural gas. A gas supply emergency can be declared when suppliers are unable to safely get gas to homes and businesses, and could lead to some customers being asked to stop using gas for short periods of time. The stark warning emerged as energy bills come under the protection of government caps.
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The letter was written to SSE, which operates four gas-fired power stations in the UK which produce electricity. The company is concerned that operators of gas-fired power stations face millions of pounds worth of penalties if it is unable to fulfil promises to supply electricity "caused by events outside their control".
Ofgem reportedly said in the letter: "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."
It added they 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".
Electricity system operator (ESO) National Grid is due to give an update to its winter outlook for spare capacity this week. It had said earlier this year that it expected supply to be tight but did not expect the lights to go out despite the Europe-wide battle to secure supplies.
An Ofgem Spokesperson said: “This winter is likely to be more challenging than previous ones due to the Russian disruption of gas supplies to Europe.
“Britain is in a good position with little direct import of gas from Russia; our own domestic gas production; reliable supplies from Norway; and the second-largest port capacity in Europe to import liquified gas. Nevertheless, we need to be prepared for all scenarios this winter. As a result, Ofgem is putting in place sensible contingency measures with National Grid ESO and GSO as well as the government to ensure that the UK energy system is fully prepared for this winter.”
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