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.
UK GVT; UK OFGEM
||PR, Gd 9/18/2021; ESG
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|Reg. Last Update
Last substantive update on 09/20/2021