The security of the UK’s energy supply, no need to panic

Following on from the news last week regarding the fire at the main electricity interconnector in the UK and rising gas prices, there have been a lot of discussions and meetings taking place over the weekend. The main thing to come out of these meetings is, according to the Government, the UK’s energy supply is not a cause for immediate concern. This was following a series of meetings Kwasi Kwarteng, Business and Energy Secretary, held with energy industry bosses.

“The UK benefits from having a diverse range of gas supply sources, with sufficient capacity to more than meet demand…….the UK’s gas system continues to operate reliably and we do not expect supply emergencies this winter.”

– Kwasi Kwarteng, Business and Energy Secretary. (Gov.uk Source)

For many business owners, understandably this news and substantial price increases will have caused some unease last week. Since the weekend, there is more positive news and the Government sources have said that there will be no immediate threat to gas or power supplies. Further meetings between the Government, suppliers, the regulator Ofgem and other industry parties are scheduled for the coming days. Security of supply is one of the regulator’s key aims, alongside value for money and protecting vulnerable customers.

The increase in gas and electricity prices is something that we are closely monitoring at Indigo Swan and please rest assured we will remain at the forefront of the latest developments, in order to best advise our customers and manage your energy contracts.

The energy industry is suffering a tough time but, we will get through it, and if anything, this has shown us the importance of a varied electricity generation mix, which includes renewable energy and also nuclear. Securing gas supplies from a range of sources and countries (including the UK’s own reserves) is also key for price and supply stability, particularly in winter months. There are a lot of opportunities for businesses to install on-site renewables-based generation to improve their own security of supply, which will also help UK Plc achieve ambitious renewables and carbon targets.

If you have any concerns or would like to discuss the opportunity for renewables-based on-site electricity generation, please get in touch with your Client Guide who would be happy to talk through your queries.

Sources:

https://www.gov.uk/government/news/statement-following-meetings-between-the-business-and-energy-secretary-and-energy-industry

https://www.energylivenews.com/2021/09/20/kwasi-kwarteng-security-of-energy-supply-is-not-a-cause-for-immediate-concern/

https://www.bbc.co.uk/news/uk-58605735

https://www.reuters.com/business/energy/russias-gazprom-warns-new-records-natural-gas-prices-europe-2021-09-17/