UK GVT Impact of High Gas Prices

On Sep. 18, UK GVT met with energy industry to discuss impact.

  • UK GVT business and energy secretary issued a statement after meetings with the energy industry to discuss high gas prices driven by international supply/demand.
  • Kwasi Kwarteng held individual meetings with senior executives to discuss the impact.
  • Follows UK OFGEM Aug. 2021 said it will protect Hub Energy customers, see #116384.
  • Follows UK OFGEM Aug. 2021 said record gas prices raised price cap, see #116433.
  • Statement Summary
  • Was reassured by industry that supply security is not an immediate industry concern.
  • UK has diverse gas supply sources and sufficient capacity to more than meet demand.
  • System is operating reliably, no anticipated increased risk of winter supply emergency.
  • UK GVT is confident that supply security can be maintained, as Great Britain's diverse electricity mix means it has one of the most reliable systems in the world.
  • Largest single gas supply is domestic production, plus reliable imports, e.g., Norway.
  • However, volatile global gas price shows need for domestic renewable energy sector.
  • With four small suppliers recently ceasing to trade, UK OFGEM has measures in place to ensure customer gas and electricity supply will not be interrupted if a supplier fails.
  • Should a supplier of last resort not be possible, UK OFGEM and UK GVT are able to appoint special administrator to temporarily run business until a new supplier is found.
  • Referred to warm home discount, winter fuel payments, cold weather payments for vulnerable customers, plus energy price cap, to protect against sudden price increase.
  • Next Steps
  • Business secretary will meet with UK OFGEM on Sep. 19, to discuss issues raised by industry further, and will also convene a roundtable with industry on Sep. 20.
  • Will work with wider government on broader implications of global gas price increase.
  • In Sep. 2021, UK GVT, issued statement to UKP, OFGEM joint statement, see #116389.

Regulators UK GVT; UK OFGEM
Entity Types CNSM; Corp
Reference PR, Gd 9/18/2021; ESG
Functions Compliance; C-Suite; Financial; Legal; Reporting; Resolution; Risk; Treasury; Underwriting
Countries United Kingdom
Products Commodities; Corporate; Loan
Regions EMEA
Rule Type Guidance
Rule Date 9/18/2021
Effective Date 9/18/2021
Rule Id 116247
Linked to Rule :116389
Reg. Last Update 9/18/2021
Report Section UK

Last substantive update on 09/20/2021