UK 'fully prepared' for all energy supply scenarios, silent on rationing report

The UK government was "fully prepared" for any energy supply scenario this winter, the Department for Business, Energy and Industrial Strategy told S&P Global Commodity Insights May 30, but would not comment on an article in The Times newspaper of possible power rationing.

Officials have warned the government that under a worst-case scenario up to six million households could face controlled blackouts this winter if Russia extended gas supply cuts to the EU, the Times reported.

"The UK has no issues with either gas or electricity supply, and the government is fully prepared for any scenario, even those that are extreme and very unlikely to occur," BEIS said in a statement emailed to S&P Global.

When asked about the likelihood of power rationing, however, a BEIS spokesperson said the department was not able to offer further comment.

National Grid Electricity Supply Operator also declined to comment on rationing as an option, but said an "early view" of its annual Winter Outlook report would be published in July.

On May 27, BEIS published a letter from Secretary of State for Business Kwasi Kwarteng calling on National Grid ESO to work with coal plant operators to guarantee non-gas-fired thermal generation was available next winter.

Kwarteng was also reported to be looking at an extension for the 963-MW Hinkley Point B nuclear plant due to close in July.

Drax has already said it has been approached by the government to keep its last two 660-MW coal units open beyond end-September. EDF's 2-GW West Burton A coal plant is also due to shut this September.

Season-ahead (Winter 2022/23) UK baseload power was assessed by S&P Global at GBP247.05/MWh ($312/MWh) on May 27, up 9% week on week.