UK energy watchdog warns of 'significant risk' of gas shortage this winter

The UK’s energy regulator has warned the country may face a “significant risk” of gas shortages this winter.

The shortfall could mean asking big industrial consumers in the UK to stop using gas if an emergency is declared due to the shortage, mainly caused by the impact of the Russia-Ukraine war.

The warning came in a letter from the energy watchdog Ofgem to The Times of London sent last week.

In a separate warning, earlier on Monday, the International Energy Agency (IAE) said global natural gas markets are set to remain tight next year, with lower gas flow from Russia to Europe, high gas prices, lower demand, and the impact of energy conservation measures.

As Russia's curtailing natural gas flow to Europe leads to new highs in international prices, it also disrupts the trade flow, leading to fuel shortages in some emerging and developing economies, the IEA said.

Russia's reduced flows to Europe deepen market tensions and uncertainty ahead of the coming winter, not just for Europe but also for all markets that rely on the same supply pool of liquefied natural gas (LNG), according to the report.

In 2021, imports from Russia made up 4% of gas used in the UK, 9% of oil, and 27% of coal, according to British parliament records.

In 2021, imports of gas, oil, and coal from Russian to the UK were worth a combined £4.5 billion ($5.05 billion).

According to Eurostat, in 2020, imports from Russia made up 39% of the gas used in the EU, 23% of oil imports and 46% of coal imports.