THE energy regulator has warned of a “significant risk” of blackouts due to gas shortages in the UK this winter.
Ofgem said in a letter that a “gas supply emergency” could lead to some power plants – which rely on gas to run – being cut off.
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This could see them stop generating electricity, and as these plants provide the lion’s share of electricity supply for the nation, fears have been sparked of future blackouts.
In Ofgem documents, the regulator said gas shortage issues have been driven in part by the war in Ukraine and existing shortages in Europe.
Russia has cut off most gas pipeline shipments, squeezing supply in Europe.
It’s important to note, that it’s very unlikely that households would suffer from any such blackouts.
It would always be big businesses which would be forced to shut down before impacting any customers.
Some companies which run gas power stations have raised concerns to Ofgem about the impact a gas supply emergency could have on business.
Power stations face big fines if they fail to supply electricity to businesses.
But this rule could see companies running these plants struggle under costs, according to a report by Ofgem.
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Gas plant owner SSE has called for the rules to change.
It said it on average, the biggest plants could rack up charges of up to £475million per day.
The company, along with RWE – another gas station owner – are limiting advance sales of electricity, which is in turn pushing prices up.
National Grid, which is responsible for keeping the lights on and gas flowing, is looking to build up backup gas supplies ahead of any disruption this winter, The Telegraph reports.
An SSE spokesperson said: “There is broad industry agreement on the need to examine this issue, with the decision ultimately one for Ofgem.”
A RWE spokesperson said: “As one of the largest operators of efficient gas plants the company has raised and share concerns that, under the current rules, if a power station’s fuel supplies are interrupted due to a gas emergency – generators could be exposed to very high imbalance charges.”
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.”
National Grid were contacted for comment.
It’s not the first time households have been warned of blackouts this year.
Four days of blackouts are included in an emergency plan inked by the government on what could happen during the energy crisis this winter.
The Government insists it has sufficient reserves to avoid blackouts, but is just preparing for possible scenarios that will likely never happen.
Under the latest “reasonable worst case scenario” Britain would be struck by a serious electricity shortfall even after back-up coal plants are activated.
It means millions of households could be asked to turn down their thermostats and switch off their lights this winter in a bid to avoid blackouts.
Supplies of gas to Europe and Britain have been reduced this year following Russia’s invasion of Ukraine.
Russia has already reduced supply to Europe via the Nord Stream 1 pipeline, a major gas supply line.
