Energy crisis: Plan for three-hour power blackouts to prioritise heating in event of gas shortages – as EU agrees to cut electricity use
The country has been put on notice that the chances of gas shortages this winter have risen markedly, prompting a contingency plan to prioritise heating.
National Grid’s Electricity System Operator (ESO) warned that planned three-hour power blackouts could be imposed in some areas, in the “unlikely” event supplies of gas fall short of demand.
It revealed the measure in an update on the UK’s state of energy readiness for the cold months ahead but it said that the risk of temporary power cuts could be avoided with help from the public.
The report showed, under a base case scenario, that margins between peak demand and power supply were expected to be sufficient and similar to recent years thanks to secure North Sea gas supplies, imports via Norway and by ship.
It comes as EU countries formally agreed to a voluntary 10% cut in gross electricity consumption and a mandatory reduction of 5% during peak hours – in what have been labelled “extraordinary measures”.
The European Council said: “Member states will identify 10% of their peak hours between 1 December 2022 and 31 March 2023 during which they will reduce the demand.
“Member states will be free to choose the appropriate measures to reduce consumption for both targets in this period.”
The ESO urged households to help manage that balance by signing up to an energy-saving scheme through their supplier, in a bid to help ease the risk of the lights going out.
The “demand flexibility service”, due to start next month, will see bill-payers be paid to save energy during peak hours.
Coal generators, that the operator said would have otherwise closed, will be used to maintain supply. In an effort to generate enough power to supply 600,000 homes the ESO is securing contracts with three generators to keep five coal units open and on standby.
A separate study by National Grid Gas Transmission, which is a separate business to the ESO, saw the potential for the shortfall in gas supplies within continental Europe – as a result of Russia’s war in Ukraine – to impact the UK’s usual ability to attract imports.
It suggested gas needed to power the UK’s electricity grid was expected to rise by nearly 22% – offsetting savings from lower household and business use – largely because of a need for power in France where many nuclear plants are offline.
It saw LNG (liquefied natural gas) from the US and Qatar acting as the new primary source of supply flexibility.
Gas accounts for over 40% of UK power generation – more if the wind fails to blow and other plants are offline for maintenance.
The ESO’s report marked a darkening in the prospect for disruption in the months ahead following a comparatively rosy early view report in July.
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Risk of emergency gas shortage
There was a clear sign of a shift in direction earlier this week when it emerged that the energy regulator Ofgem had warned of a “significant risk” of a gas supply emergency.
It blamed the international scramble for supplies because of the war, which has starved continental Europe of its main source of natural gas.
On Thursday, Prime Minister Liz Truss refused to reiterate a promise she made during the Tory leadership election that there will not be blackouts this winter.
Pushed to repeat that promise, she told reporters in Prague: “Well what we’re clear about is we do have a good supply of energy in the UK, we’re in a much better position than many other countries.
“But of course there’s always more we can do.”
A gas supply emergency can be declared when suppliers are unable to safely get gas to homes and businesses.
It could mean that some customers, starting with the largest industrial consumers, will be asked to stop using gas for a temporary period.
The aim would be to keep gas and gas-generated electricity supplies stable for households for as long as possible.
For the electricity market, coal-fired power stations can be brought back online under what is known as a system notice to help fill stopgaps. This has traditionally happened when nuclear plants go offline or the wind fails to blow.
The hope is that these sorts of measures will not be necessary because of the looming demand flexibility service.
It is expected to be implemented at least 12 times, whatever happens, from November to March to ensure a benefit for signatories.
The ESO’s director of corporate affairs, Jake Rigg, said: “If you put your washing machine or other electrical appliances on at night instead of the peak in the early evening, you can get some money back when we all need it.”
Energy bills have rocketed this year but now come under the protection of government caps on wholesale costs, shielding both households and businesses from the worst in the price surge ahead of winter.
It means the taxpayer will foot the bill for wholesale prices above the unit cap level.
The scheme does not cap your bill, which will continue to depend on the amount of energy used.
An Ofgem spokesperson said of the National Grid reports: “We have one of the most reliable energy systems in the world and we are in a favourable position.
“However, it is incumbent on a responsible and prudent energy sector to ensure the right contingency measures are in place, which is why we are working with the government, National Grid and key partners to protect consumers, so that Great Britain is fully prepared for any challenges this winter.”
Business
Resident doctor strikes: I don’t want people to suffer but we have to walk out again, says BMA chief
The British Medical Association (BMA) has defended a new round of resident doctor walkouts starting on Friday, insisting medics’ pay is still “way down” compared with 2008 and that the government has failed to finish “a journey” towards restoring it.
BMA chair Dr Tom Dolphin told Sky News the dispute remains rooted in years of pay erosion that have left resident doctors far behind other public sector workers.
“When we started the dispute, […] the lowest level of the resident doctors were being paid £14 an hour,” he said.
“There were some pay rises over the last couple of years that brought that partly back to the value it should be at, but not all the way.
“The secretary of state (Wes Streeting) himself called it a journey, implying there were further steps to come, but we haven’t seen that.”
Resident doctors outside Newcastle’s Royal Victoria Infirmary during a five-day strike in July. File pic: PA
When asked if the row ultimately “comes down to money”, he replied: “In the sense that the secretary of state doesn’t want to or isn’t able to fund the pay increases to match the value that we had in 2008.”
Dr Dolphin argued that while “the general worker in the economy as a whole” has seen pay catch up since the 2008 financial crash, “doctors are still way down”.
The government points out that its 29% settlement last year was one of the largest in the public sector and was intended to draw a line under two years of walkouts.
But Dr Dolphin said the deal still fell short: “The gap was biggest for doctors and needed the biggest amount of restoration, and that’s what we got.”
He defended the BMA’s use of the Retail Price Index (RPI), a metric rejected by the Office for National Statistics, saying it “better reflects the costs people face”.
Should resident doctors get a pay rise? Have your say in the poll at the bottom of this story.
Dr Tom Dolphin says resident doctors are still underpaid
‘Who do you think is treating the patients?’
With Chancellor Rachel Reeves preparing her budget amid warnings of deep cuts, Dr Dolphin said the BMA is not demanding an immediate cash injection.
“We’re quite happy for that money to be deferred with some kind of multi-year pay deal so that we can end the dispute and avoid having further industrial action about pay for several years to come,” he said.
“Money spent in the NHS is returned to the economy. For every pound you spend, you get several pounds back.”
When pressed on whether the £1.7bn cost of previous strike action could have been better spent on treatment and technology for NHS cancer patients, he hit back: “Who do you think is treating the cancer patients? It’s the doctors.”
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Health Secretary Wes Streeting has criticised the BMA for striking again. File pic: PA
Strikes will cause disruption, union boss admits
Dr Dolphin rejected suggestions that the dispute could destabilise the government, calling the idea “implausible”.
He admitted prolonged strikes have tested public patience, but said the government had left doctors with no choice.
“A prolonged industrial dispute makes people annoyed with both sides,” he said. “It is vexing to us that we are still in this dispute.”
“I don’t want patients to suffer,” he added. “I accept that the strikes cause disruption… of course that’s upsetting for them. I completely get that. And I’m sorry that it’s happening.”
Wylfa, on Anglesey, also known as Ynys Mon, has been chosen as the site for the UK’s first small modular reactor nuclear power station, the UK government has confirmed.
Officials estimate the site in north Wales will support hundreds of full-time jobs, as well as 3,000 jobs in the local economy at the height of construction.
Work on the site is due to commence in 2026 with an initial programme involving three reactors. The location has the capacity to accommodate as many as eight small modular power stations in the longer term.
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Sky News understands ministers weighed up Oldbury in Gloucestershire as a possible site before ultimately deciding on Anglesey.
The project will be run by the publicly owned company Great British Energy-Nuclear and is supported by a UK government investment of £2.5bn.
Rolls-Royce SMR is set to design the UK’s first small modular nuclear reactors (SMRs), pending final contracts, which are expected to be signed later this year.
Prime Minister Sir Keir Starmer said: “Britain was once a world-leader in nuclear power, but years of neglect and inertia has meant places like Anglesey have been let down and left behind.”
He added: “We’re using all the tools in our armoury – cutting red tape, changing planning laws, and backing growth – to deliver the country’s first SMR in North Wales.”
The site is projected to supply electricity for three million homes – more than twice the number of homes in Wales. It is hoped the Wylfa reactors will start supplying power to the grid from the mid-2030s.
Energy Secretary Ed Miliband is leading the government’s drive for clean energy. Pic: PA
Eluned Morgan, the first minister of Wales, said: “This is the moment Ynys Mon and the whole of Wales has been waiting for.”
She added: “New nuclear is a step into the future, with secure jobs and secure energy guaranteed for the next generation. We have been pressing the case at every opportunity for Wylfa’s incredible benefits as a site, and I warmly welcome this major decision to invest in northwest Wales. Wales is once again leading the way.”
Small modular reactors are compact nuclear power stations, built as prefabricated units for on‑site installation, with the aim of being constructed more quickly than sites like Hinkley Point C.
Nuclear power is not new to the Welsh island. A station was first constructed in the 1960s and began generating electricity in 1971. The two reactors operated for decades before being shut down. Reactor 2 was decommissioned in 2012, followed by Reactor 1 in 2015.
Efforts to revive nuclear generation at the site have also been made before. In 2021, proposals to build a new plant were abandoned under the previous UK government.
Wylfa, power station in Anglesey, North Wales, pictured in 1973. Pic: PA
Rhun ap Iorwerth, Plaid Cymru leader and MS for Ynys Mon, welcomed the investment, but aired caution over previous false hope.
He said: “Today’s announcement is significant for people on Ynys Mon and across Wales. It reflects years of hard work by both the Plaid Cymru-led Anglesey County Council and Llinos Medi – both as the current MP and former council leader.
“Since I was elected over 12 years ago, the future of the Wylfa site has remained a live issue on Ynys Mon. Whilst we’ve learnt from past experience that we need assurances now that this plan will actually be delivered, there’s no doubt that there’s a real opportunity here that we have to take advantage of.”
Plaid Cymru leader Rhun ap Iorwerth has cautiously welcomed the announcement. Pic: PA
He added that his priority is “to ensure that the voices and interests of communities on Ynys Mon are represented at every step”, and that he has “always taken the view that we must make the most of the economic growth and job opportunities for young people that come with a new development at Wylfa”, while mitigating “the challenges” that such projects bring.
“The Welsh government also has a crucial role to play in these discussions. I want to make sure that Welsh government has real input, with Welsh interests placed at the heart of the development,” he concluded.
Some of the biggest names in music – including Coldplay, Dua Lipa and Radiohead – have urged the government to honour a pledge to cap ticket resale prices and shutout touts.
They have joined artists including The Cure’s Robert Smith, New Order, Mark Knopfler, Iron Maiden, PJ Harvey and this year’s Mercury Prize winner Sam Fender to sign a statement calling for a cap to “restore faith in the ticketing system” and “help democratise public access to the arts”.
Other signatories include the watchdog Which?, FanFair Alliance, O2, the Football Supporters’ Association and organisations representing the music and theatre industries, venues, managers, and ticket retailers.
In the statement, the coalition says new protections are needed to “help fix elements of the extortionate and pernicious secondary ticketing market that serve the interests of touts, whose exploitative practices are preventing genuine fans from accessing the music, theatre, and sports they love”.
Labour had promised in its manifesto to put a stop to concert-goers being scammed or priced out of events by touts using bots to buy tickets in bulk the moment they go on sale, which they can then sell on for huge mark-ups on secondary ticketing websites.
In government, the party again made that promise – but more than a year after it vowed action, and seven months since its consultation on the issue closed, there has been no clear indication of when new laws will be introduced.
Restore faith in the ticketing system, or Something Just Like This. Pic: AP
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This year’s Mercury Prize winner Sam Fender has joined the coalition. Pic: PA
The campaign comes as a new investigation from Which? found prolific sellers in locations including Brazil, Dubai, Singapore, Spain, and the US hoovering up tickets for popular events in the UK before relisting them at vastly inflated prices on StubHub and Viagogo.
How much?!
Which? found Oasis tickets for Wembley shows listed for £3,498.85 on StubHub and £4,442 on Viagogo.
A seat for the Minnesota Vikings vs Cleveland Browns NFL clash at Tottenham Hotspur was listed for £3,568.39 on StubHub, while a Coldplay ticket, also for Wembley, was £814.52 on StubHub.
And a ticket for the All Points East festival in London’s Victoria Park, headlined by Raye, for £114,666 on Viagogo.
The watchdog found it was often difficult for buyers to establish the seller’s identity or to contact them – despite the Competition and Markets Authority securing a court order in 2018 requiring Viagogo to outline the identity of traders.
This year’s Mercury Prize winner Sam Fender has joined the coalition. Pic: PA
And there’s more…
Which? also found evidence of speculative selling – when tickets are listed on secondary sites even though the seller has not bought them yet.
Tickets for a Busted vs McFly show in Glasgow, which were available through Ticketmaster – the original seller – were simultaneously being listed on StubHub and Viagogo at double the price.
Government to set out plans ‘shortly’
Which? consumer law expert Lisa Webb urged Prime Minster Sir Keir Starmer to commit to legislation.
A government spokeswoman said it is “fully committed to clamping down on touts,” had listened to comments in response to the consultation earlier this year, and would set out its plans “shortly”.
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