London Daily

Focus on the big picture.
Thursday, Jul 24, 2025

UK at significant risk of gas shortages this winter, warns energy regulator

UK at significant risk of gas shortages this winter, warns energy regulator

The UK is facing "a significant risk" of gas shortages this winter, according to the industry regulator, which could impact electricity supplies.

Ofgem said due to Russia's war with Ukraine, there is a possibility the UK could enter a "gas supply emergency".

This would lead to supplies being cut to power stations which use gas to generate the country's electricity.

Gas-fired power stations generate between 40% and 60% of the UK's electricity.

Firms are at risk of running out of money because of huge charges they pay if they cannot deliver electricity.

Ofgem said: "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."

If this happens, supplies would be cut to "the largest gas users" which are likely to be "large gas-fired power stations which produce electricity to the National Electricity Transmission System".

It is not clear if this could result in electricity blackouts or mean homes and businesses will face energy rationing this winter.

During the Conservative Party leadership campaign, Prime Minister Liz Truss ruled out rationing.

Asked about the risk of blackouts this winter, Ofgem told the BBC: "This winter is likely to be more challenging than previous ones due to the Russian disruption of gas supplies to Europe."

But it said: "Britain is in a good position with little direct import of gas from Russia

"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 as well as the government to ensure that the UK energy system is fully prepared for this winter."


Ofgem wrote a letter in response to SSE, which operates four gas-fired power stations in the UK that produce electricity.

SSE is concerned that operators of gas-fired power stations face millions of pounds worth of costs if they are unable to fulfil promises to supply electricity "caused by events outside their control".

A power station will burn gas to create heat which powers a turbine. This creates electricity which is transmitted up and down the UK's National Electricity Transmission System via pylons or underground cables.

In the event electricity supplies are disrupted because of constrained gas supplies, generators would have to pay what are known as "imbalance charges".

These cover the cost of National Grid having to find electricity from elsewhere to meet demand.

Ofgem said this "could result in potential insolvency of gas-fired generators if a gas supply emergency occurs".

SSE said that an averaged-sized power station could face charges of around £276m a day if it is unable to generate electricity.

In its letter, which was first reported in The Times, Ofgem said it would look at the issue of charges as a matter of urgency because it will have a "significant impact on the safety and security of the electricity system".

SSE said that by raising the issue with Ofgem it "would protect security of supply by ensuring gas-fired power stations are able to provide vital flexible generation through challenging periods".

A spokesperson said: "There is broad industry agreement on the need to examine this issue, with the decision ultimately one for Ofgem."

RWE, which also generates electricity in the UK through gas-fired power, said it shares and raised the same concerns.

"Due to circumstances beyond our control, the station would be heavily penalised for not meeting its generation obligations."

David Cox, an independent energy analyst, said that the UK was heading into a "very dangerous situation" this winter.

"The problem is we get about 40% of our electricity from gas-powered plants in the UK," he said.

Mr Cox noted that the UK will face challenges importing gas from storage sites in Europe this winter, with European countries facing their own supply crunch due to Russia's war in Ukraine.

A spokesperson for the Department for Business, Energy and Industrial Strategy 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."

Since its initial invasion of Ukraine, the Kremlin has reduced energy supplies to Europe while many countries have pledged to shift their reliance for oil and gas away from Russia.

While the UK does not rely on Russia for oil and gas, any disruption causes a widespread impact on international supplies.

Most recently, leaks were discovered at Russia's two main gas pipelines to Germany, Nord Stream 1 and Nord Stream 2. Though neither were operational, the EU, US and Nato suggested the damage was intentional. Russia has denied any involvement.

Newsletter

Related Articles

0:00
0:00
Close
Politic is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
×