Will the UK face a gas shortage this winter? British Gas owner Centrica inspired concern about ongoing gas supply when it revealed that the UK ‘has less than a week of gas demand in store’.
Centrica, which operates the UK’s largest gas storage facility, blamed the unusually cold weather for supply levels, calling them ‘concerningly low’. Supplies of stored gas are currently 26% lower than they were at this time last year.
However, National Gas, which owns and operates the UK’s gas infrastructure, has assured consumers that storage ‘remains healthy’.
Will a gas shortage cause blackouts?
Despite the low levels of UK gas storage, energy analysts say households should not be concerned about blackouts or losing heating.
Even if stored supplies were exhausted, the UK gets its gas from a variety of sources. Suppliers will be able to purchase gas from other countries in Europe and further afield. National Gas released a statement confirming that the UK’s gas network is ”well-placed to respond to demand this winter’.
Will UK energy prices go up?
For domestic customers, energy bills will not rise in the short term. Customers on fixed-rate tariffs are protected from any price changes until the end of their contract. Those on variable tariffs may see price rises in April when the energy price cap is next adjusted.
This will depend on demand over the coming months, with colder weather driving increased gas and electricity usage. Currently, wholesale gas prices are lower than at the beginning of the year.
However, the recent Energy Crisis Commission’s examination concluded that the UK is ‘dangerously unprepared‘ for a future energy crisis as it is still heavily reliant on natural gas.
Protect yourself from an energy price rise by switching to a fixed rate tariff.
What’s being done to prevent a gas shortage?
The UK faced similar concerns over the volume of gas storage during the 2022 energy crisis. A combination of factors, including the Russian invasion of Ukraine, threatened supply levels across Europe and sent wholesale prices skyrocketing.
Since then, Centrica has reopened the major Rough storage facility off the coast of Yorkshire. The operation now offers around half of the UK’s storage capacity, with Centrica looking to invest a further £2bn to expand its gas storage and introduce Hydrogen storage as it becomes part of the UK’s fuel mix.