Ofgem approves £147m deal to keep UK gas imports from Europe flowing this winter

Ofgem has approved a deal between Interconnector Limited and National Gas Transmission to reinforce gas import capability through the Great Britain–Belgium interconnector, which brings gas from Zeebrugge to Bacton in Norfolk. Announced on Thursday 22 October, it reverses a planned capacity cut after analysis showed Britain could otherwise face risks to security of supply. Ofgem is consulting on cost-recovery until 20 November. (Ofgem statement; The Times)

Ofgem warned that “without intervention, Great Britain could potentially face a negative supply margin in winter 2026-27” if an extremely cold day coincided with the failure of crucial gas infrastructure. (The Times)

The intervention is estimated to cost £147.2m over five years — about £1.19 per household per year, or around 10p a month on the average gas bill. (The Times; The Guardian)

“We have approved the agreement needed to maintain this important capability, and, as such, are consulting on the proposed regulatory mechanism for recovering its costs,” said Jack Presley Abbott, Ofgem’s director of energy systems management and security. (Reuters)

Glenn Bryn-Jacobsen, National Gas’s director of energy systems and resilience, called maintaining import capability “an important action to strengthen resilience”, warning of the need for “further co-ordinated action to maintain Britain’s security of supply”. (The Times)

Context: UK North Sea output is forecast to fall 6% this year, LNG imports to run about 5% higher than last winter, and Europe enters winter with gas storage at a 13-year low — even as the Jackdaw gas field was approved this week. (The Guardian; The Times)