LONDON (Parliament Politics Magazine) – This winter, there is “a significant risk” of gas shortages in the UK, which might affect the availability of power.
According to Ofgem, there is a chance that the UK might experience a “gas supply emergency” as a result of Russia’s conflict in Ukraine.
As a result, gas supplies to power plants that use gas to produce the nation’s energy would be shut off.
Due to the significant fees that businesses must pay if they are unable to provide energy, they face the danger of going bankrupt.
SSE, which runs four electricity-producing gas-fired power plants in the UK, received a letter in response from Ofgem.
SSE is worried that gas-fuelled power plant owners might be subject to penalties of millions of pounds if they are unable to produce energy due to “events beyond their control.
According to Ofgem, “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.”
According to the BBC, if this were to occur, supply to the biggest gas consumers—likely major gas-fired power plants that generate energy for the National Electricity Transmission System—would be shut off.
Generators would be required to pay “imbalance charges” in the event that electricity supplies were interrupted. These costs reflect the expense incurred by National Grid when sourcing more power to fulfil demand.
If a gas supply emergency develops, according to Ofgem, this might lead to the “potential insolvency” of gas-fired generators.
According to SSE, a power plant of average size might be charged up to ÂŁ276 million per day if it is unable to provide energy.
The issue of charges will be urgently examined by Ofgem since it will significantly damage the security and safety of the energy system, according to its letter, which was originally published in The Times.
By bringing up the matter with Ofgem, according to SSE, it will ensure that gas-fired power plants can continue to deliver essential flexible energy during trying times.
RWE, which also uses gas-fired power to produce energy in the UK, claimed to share and voice the same concerns.
“Due to circumstances beyond our control, the station would be heavily penalised for not meeting its generation obligations.”.
While several nations have vowed to lessen their dependence on Russian gas and oil, the Kremlin has cut back on energy deliveries to Europe since its initial assault on Ukraine.
Despite the fact that the UK does not depend on Russia for its gas and oil needs, any interruption has a significant effect on global supply.
Most recently, leaks at Nord Stream 1 and Nord Stream 2, Russia’s two primary gas pipelines to Germany, were found. The EU, US, and NATO claimed the damage was purposeful despite the fact that neither were in use. Russia has refuted all allegations.
