U.K. could suffer forced power cuts this winter, National Grid warns

Oct. 06, 2022 9:54 AM ETNational Grid plc (NGG)By: Carl Surran, SA News Editor

Power lines and sunset landscape

Gargolas/iStock via Getty Images

National Grid (NYSE:NGG) -1.9% in Thursday's trading after warning the U.K. could face planned power cuts to homes and businesses this winter if it is unable to import electricity from Europe.

In a worst case scenario, British households could lose power for as long as three hours at a time this winter if gas supplies run extremely low, but homes would face no problems as a "base case," the utility said.

The U.K. is heavily reliant on gas to produce electricity, with gas-fired power stations generating more than 40% of the country's electricity, and it imports electricity from continental Europe.

Russia has all but completely cut off gas flows to Europe, and while Russia meets just ~4% of the U.K.'s gas needs, the disruption in supply to Europe has helped drive up British prices and makes it harder for the country to secure gas from others.

National Grid (NGG) could be "good for your portfolio due to high recession resistance and non-cyclical cash flows," Wolf Report writes in an analysis published on Seeking Alpha.

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.