Media reports: British authorities prepare plan with power cuts for energy saving

London has drawn up a plan in case residents and businesses are affected by a power outage. Bloomberg reports that this worst-case scenario will be implemented in the event of a cold winter and lower energy supplies from Europe.

The UK has drawn up a plan that will see power cuts at industrial plants and even residential buildings in the event cold weather coincides with severe gas shortages. This is what the newspaper reports Bloomberg citing sources.

The move is part of the government’s worst-case scenario, according to which the country could face power shortages of around one-sixth of peak demand even after emergency coal-fired power plants are commissioned. This was explained to the news agency by interlocutors familiar with the government’s plans.

The plan envisages that if temperatures drop below average and electricity supplies from Norway and France are disrupted, the UK government could be forced to take emergency measures to conserve gas. The power supply to the gas-fired power plants would be interrupted, leading to planned power outages for industry and households. According to data from Bloomberg such a power outage could last four days.

The baseline scenario does not include any power outages. In the first phase of the contingency plan, the grid operator would divert gas flows into the system by temporarily suspending commercial fuel supply agreements, the interlocutor said Bloomberg.

The British Department for Business, Energy and Industrial Strategy also told the news agency that this scenario was not to be expected. The ministry stated:

“Residents and industry can be sure that they will get the electricity and gas they need.”

Bloomberg also wrote that international group Investec Bank Plc estimates the average electricity bill for UK households could rise to £4,210 a year. This is more than double the current price level of around £2,000 a year.

To better control spending: Brits are back to cash

To better control spending: Brits are back to cash

The UK regulator said it intends to review tariffs quarterly rather than twice a year due to the volatility of energy prices. That means the next tariff review will take place in the middle of winter, when Brits are already receiving hefty heating bills, eh Bloomberg reported.

The UK, which itself supplies gas to Europe, does not have large storage facilities to build up sufficient gas reserves. London has also previously stated that it is not dependent on Russian gas supplies and has sufficiently “secure contracts” for LNG.

The European Union had previously announced plans to reduce gas consumption during the winter. Its members have reached a “political agreement” to voluntarily reduce gas consumption in preparation for possible disruptions in gas supplies from Russia.

Between August 1, 2022 and April 1, 2023, gas consumption is to be reduced by 15 percent compared to the average of the past five years. How this is implemented in each country is up to local governments to decide.

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