In the midst of the UK’s energy crisis, Norway may reduce the quantity of energy it exports to Britain due to a “lack of rain.”
Energy costs in the UK are predicted to increase by 70% in October, resulting in average annual dual-fuel household bills combining both gas and electricity reaching more than £3,359. Following the surge in wholesale costs, which has been attributed to the green agenda and partly to the embargo on Russian oil and natural gas, energy prices have increased throughout Europe.
Although just 4% of the UK’s energy needs are met by Russia, suppliers on the continent have started to stop selling energy as a result of the increase in price.
Norway’s energy minister has warned that a lack of rain may lead to Norway’s electricity supply to Britain being reduced.
Terje Aasland says that Norway plans to limit energy exports because 90% of the country’s energy supply comes from low hydropower reservoirs.
He said the following to the energy news website, Montel:
“We are looking at how to limit exports in situations where reservoir filling becomes critically low.”
“Then we must secure enough power for our national consumption.”
A third of the gas used in the UK is derived from Norway, and around half originates from the North Sea.
Norway’s reservoir levels are 49.3 percent lower than the seasonal average of 74.4 percent.
The £1.4 billion underwater “interconnector” link that connects Norway and Britain was finished last year and can power 1.4 million UK households.
National Grid had thought that this cable would work all through the next winter until now.
Phil Hewitt of the consulting firm EnAppSys told the Times,”The current tight situation in Great Britain’s power markets for this winter is now threatened with more uncertainty from what was thought to be one of the most reliable sources of imported electricity.”
It comes after researchers at Cornwall Insights predicted that costs would likely exceed £3,359 in October and stay high through 2024.
According to Craig Lowrey, senior consultant at Cornwall Insight, the next prime minister should prioritise reviewing support for the upcoming price limit periods.
Cornwall Insight says that the maximum will go up again in January to £3,616 per year and will stay above £3,000 until at least 2024.
Regarding the actions Rishi Sunak outlined in May, Mr Lowrey continued: “Our new figures show that even increasing support for October will not make much of a dent in what is likely to be a sustained period of high energy bills.”
Mr Sunak promised a £15 billion package of help for consumers when he was still the chancellor, promising that every home would get a £400 energy bill rebate for the price ceiling increase in October.
The value-added tax (VAT), which is presently applied to energy bills at a rate of 5%, would be temporarily eliminated, according to Mr Sunak, if he is elected leader.
Ms Truss, on the other hand, has declared that she would stop green levies on bills, which would result in a less than 8% reduction in costs.
Martin Lewis warned on Wednesday that certain fixed energy packages that seemed “sickeningly” costly could really be the best offers currently available.
On his MoneySavingExpert website, Mr Lewis wrote: “The UK energy market is broken. The theory is we’re meant to gain from competition, but there hasn’t been any – instead we have effectively regulatory-enforced high prices.
“Yet there are opportunities to take action to help, not because there are great deals out there, but because the latest analysis is the future looks even WORSE, with the prediction for the next price cap continuing to rise, so it’s now far higher than even a couple of months ago.
“This means some sickeningly costly fixes look like they may now be winners.”