UK at ‘Significant Risk’ of Gas Shortages This Winter, Regulator Warns

A general view of a gas hob burning in a file photo dated Nov. 10, 2013. (PA)

The UK is facing a “significant risk” of gas shortages this winter as a result of the war in Ukraine, the country’s energy regulator Ofgem has warned.

Great Britain may face a “gas supply emergency” in the coming months, the regulator said.

Britain produces a lot of its own gas, but the majority is still imported. It has pipeline connections to Norway, which supplies a large amount of the country’s gas.

Britain imported very little Russian gas before the Russian invasion of Ukraine, but will still be affected by the shortages likely to be faced in Europe.

During winter cold snaps Britain normally imports gas from storage sites in mainland Europe. But now European countries are likely to need this gas themselves after losing supplies from Russia.

In a letter to SSE, an energy supplier, Ofgem wrote: “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 GB could enter into a gas supply emergency.”

Power Plants at Risk

More than 8 in 10 UK households use gas to heat their homes and more than 40 percent of the electricity generated in Britain over the last year came from gas-fired power plants.

If a potential supply emergency gets bad enough this winter, the largest gas users, including gas-fired power plants, might be cut off temporarily, Ofgem said.

If gas-fired power stations have their gas supply cut off, they will likely be exposed to “imbalance charges” if they have sold their power ahead of time and are expected to deliver this power.

Such imbalance charges could be high and may result in the potential insolvency of gas-fired generators.

If the issue is not urgently addressed, it could have a “significant commercial impact” on energy companies, consumers, or other stakeholders and “a significant impact on the safety and security of the electricity and/or gas systems,” Ofgem said.

A spokesperson for the Department for Business, Energy and Industrial Strategy (BEIS) said the UK “has a secure and diverse energy system and the government is confident that the steps it is taking will protect security of electricity and gas supplies.”

“To strengthen this position further we are working closely with regulators and our international partners to ensure UK households and businesses’ energy needs are met this winter,” the spokesperson told the BBC.

PA Media contributed to this report.