Key facts
- Ofgem approved an agreement to maintain UK gas import capacity from Europe.
- The deal aims to enhance resilience during high demand periods, especially winter.
- Interconnector Ltd will restore British import capacity to 27.8GW this winter.
- Potential costs of £147 million over five years may be passed to consumers.
- Energy Secretary Miatta Fahnbulleh approved the North Sea Jackdaw gas project.
Britain's energy regulator, Ofgem, has approved an agreement to maintain the UK's gas import capacity from mainland Europe through the Great Britain-Belgium interconnector. This move is intended to enhance the country's resilience and flexibility in importing gas during periods of high demand, particularly in severe winter weather.
Ofgem's decision allows Interconnector Limited, the operator of the pipeline, to restore British import capacity to 27.8GW this winter. The regulator warned that without such intervention, Britain could face a "negative supply margin" under extreme circumstances. The costs associated with maintaining this import capability, estimated at £147 million over five years, are expected to be passed on to consumers, potentially adding around £1.19 annually to energy bills.
Separately, Energy Secretary Miatta Fahnbulleh approved the long-delayed Jackdaw gas field in the North Sea, citing security concerns as a significant factor in the decision.