The UK is set for an “energy emergency” this winter as the National Grid has warned there will be high prices and gas supply shortages.
Energy prices are already double the price compared to last year and on Wednesday Britain’s gas prices rose by 7% which means millions of households will now be paying six times more than this time in 2021.
The UK’s power supplier has warned in December Britain will face very “tight” electricity supplies this winter because Vladimir Putin has cut off the gas supplies to Europe in retaliation for Western sanctions.
The National Grid warned on Thursday morning, “There are risks and uncertainties this winter as a direct result of possible shortfalls in Europe’s gas supply.”
The UK are concerned because most of France’s nuclear reactors are shut down for maintenance and will not be able to export this winter.
National Grid operator said, “We are continuing to monitor the outlook in France and will undertake further assessments.”
The National Grid has said they are working with the Government to keep coal stations in reserve for winter energy supplies.
National Grid said: “We expect there to be sufficiently available to meet demand.”
BFY Group warned that they are expecting the cap on energy bills to hit a staggering £3,850 between January and April in 2023 as Vladimir Putin has cut the flow of gas to Europe.
Despite the UK receiving a very small amount of Russian gas the price households pay here is affected by what happens in Europe.
Brits already faced a price hike from April this year as energy bills hit an eye watering £1,971 and Moscow has been accused of deliberately “weaponsing” gas to Europe because Western countries have imposed sanctions on Russia.
Dr Gemma Berwick, a senior consultant at BFY Group said, “Following further rises in wholesale prices as flows of gas from Russia to Europe via the Nord Stream 1 pipeline drop to 20% of capacity, we now forecast the Ofgem price cap to rise to £3,420 in the fourth quarter of 2022 and £3,850 in the first quarter of 2023.
“This will make the average household bill over £500 for January alone.”
The utilities consultancy now believes that Ofgem will now have to intervene to set the earlier October price cap change at £3,420 as another increase in energy bills is expected when it is reviewed in January.