UK Energy Leaders Discuss Winter Security Measures Amid Global Uncertainties
Monday, 31 July 2023
In response to potential disruptions similar to those caused by the Russian invasion of Ukraine, UK energy leaders are convening this week to discuss strategies for ensuring the security of Britain's energy supplies. The Prime Minister is expected to lead these discussions, with ministers providing updates on the government's energy security strategies.
Key topics on the agenda include new support for low carbon schemes and carbon capture technologies. The Chancellor of the Exchequer, Rishi Sunak, is expected to announce fresh funding for the Acorn project during his visit to Aberdeenshire. This project aims to capture carbon dioxide emissions from various sources across the UK for offshore storage in the North Sea.
The government has already committed to granting new oil and gas licenses in the North Sea, highlighting its commitment to maintaining energy security. This move comes in the wake of unprecedented impacts from Russia's invasion of Ukraine, which led to record wholesale gas prices and significant market volatility.
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A study by the Energy and Climate Intelligence Unit revealed that the average household spent £1,000 on wholesale gas over the past 12 months, £800 more than in a typical year. Given the approximately 300TWh of gas consumed in UK homes annually, the total cost since the invasion amounts to £25 billion, a significant increase compared to the pre-pandemic and gas crisis average of £5 billion.
Energy Security Secretary Grant Shapps emphasized the importance of energy security, stating, "Energy security is national security. Since Putin’s illegal invasion of Ukraine the government has driven Russia from our energy market, paid around half of a typical family’s energy bill and grown our economy by driving forward major energy projects."
He added, "This week we will go even further. Forging ahead with critical measures to power up Britain from Britain, including supporting our invaluable oil and gas industry, making the most of our home-grown energy sources and backing British innovation in renewables."