Britain faces ‘significant risk’ of gas shortages this winter as Russia pressures power

Bloomberg | | Posted by Lingamgunta Nirmitha Rao

The UK is at “significant risk” of gas shortages this winter and could enter an emergency that would see power plants shut down, regulator Ofgem said.

A second phase of a gas supply emergency on the grid would force “load shedding” on the largest users, such as gas-fired stations, Grendon Thompson, head of the wholesale market at Ofgem, said in a letter requesting generators. SSE Plc accepted that the regulator urgently needs to address the risk of potential insolvencies.

Russia has squeezed the gas flow to Europe in retaliation for sanctions imposed by the West after Moscow’s invasion of Moscow. That has hampered global gas supplies and increased competition for fuel, raising the prospect of power outages this winter as around 40% of the UK’s electricity comes from burning gas.

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If generators shut down, they would face “huge” imbalance charges and credit coverage requirements that could make them insolvent, SSE said in its Sept. 28 request.

“Even if such an emergency does not occur, the risk that it could occur will force generators to reduce their forward and day-ahead trading, reduce liquidity in electricity markets and increase costs for electricity consumers,” SSE added. up.

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