Gas shortages a ‘significant risk’ this winter, says Ofgem

As the impact of Russia’s war in Ukraine continues to shake energy security in Europe, Ofgem is warning that the UK faces a “significant risk” of gas shortages this winter and is considering “gas supply emergency” measures to help preserve stocks.

In the event of gas supply issues, Ofgem and the National Grid could be forced to stem the flow to gas-fired power stations to ensure enough remains available to households, 80% of which use the fossil fuel for heating. Gas-fired power stations generate between 40% and 60% of the UK’s electricity.

While the UK is in a good position, producing much of its own gas, the majority is still imported.

During winter cold snaps, Britain imports gas needed from storage sites in mainland Europe, but European countries are likely to need this gas themselves after losing the supply from Russia.

Speaking to Sky News, 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 (electricity system operator) and GSO (gas system operator) as well as the government to ensure that the UK energy system is fully prepared for this winter.”

Jess Ralston, senior analyst at the Energy and Climate Intelligence Unit (ECIU), said: “The UK electricity system has been built to rely on gas to balance the peaks and troughs of supply and demand, but this reliance could now prove problematic if prices spike further and supplies run low.

“With proposed decoupling of gas and renewables prices, wind and solar power will drive down bills and investment in batteries and other storage like pumped hydro will increasingly perform this balancing act.”