UK Credit

Russia-Ukraine and British energy: fact sheet

FAQs: Russia-Ukraine and UK Energy

Is the government convinced that the gas supply will not be interrupted?

Yes. The current situation in the UK is not a question of security of gas supply, but of high gas prices set by international markets.

Unlike other countries in Europe, the UK is in no way dependent on Russian gas supplies. Our main source of gas comes from the UK continental shelf and the vast majority of imports come from reliable suppliers such as Norway.

There are no gas pipelines directly linking the UK to Russia and imports from Russia accounted for less than 4% of the UK’s total gas supply in 2021.

Britain’s wide-ranging sources of supply include continental shelf pipelines from the UK and Norway, interconnections with the continent and three liquefied natural gas (LNG) terminals, providing Britain with the one of the largest LNG import infrastructures in Europe. Germany, for example, has no LNG import terminals.

What are you doing to diversify the offer?

The UK’s exposure to global gas price volatility highlights the importance of our plan to generate more renewable energy and cheap, clean nuclear power in the UK to reduce our dependence on fuels expensive fossils.

Thanks to the £90 billion we have invested in renewables since 2012, we already have one of the most reliable and diverse energy systems in the world.

As the Business and Energy Secretary has said, the more clean, cheap and safe electricity we produce at home, the less we will be exposed to the high gas prices set by international markets.

It is vital that European countries on the continent reduce their dependence on Russian gas both through alternative supplies, including the global liquefied natural gas (LNG) market – an increasingly important part of the supply chain global energy supply – and accelerating the transition to net zero.

This is a priority for our engagement with key international partners and we continue to work with them to achieve it.

What is the government doing to mitigate any further increases in consumers’ energy bills?

The energy price cap has insulated millions of customers from global gas price volatility over the winter months and will continue to do so.

We’re taking decisive action to help more than 27 million households cope with rising energy costs, with a £200 cut on bills this autumn and a £150 non-refundable cut on council tax bills from April. The £9.1billion support package means the majority of households will receive a £350 boost to cope with the financial pressures families across the country will feel next year.

This comes on top of the existing £12 billion support we have already put in place to help families with the cost of living.

What is the government doing to mitigate any further price increases for industry and business?

We remain absolutely committed to securing a competitive future for our energy-intensive industries and over the past few years we have provided significant support, including over £2 billion to help meet energy costs and protect jobs.

Ministers and officials continue to engage constructively and regularly with industry and our priority is to ensure cost management.

Unlike other countries in Europe, the UK is in no way dependent on Russian gas supplies. We secure around half of our annual gas supply from domestic production and the vast majority of imports come from reliable suppliers such as Norway.

There are no gas pipelines directly linking the UK to Russia. Our main source of gas comes from the UK continental shelf and the vast majority of imports come from reliable suppliers such as Norway. There are no gas pipelines directly linking the UK to Russia and imports from Russia accounted for less than 4% of the UK’s total gas supply in 2021.

Should the public expect fuel prices at the pump to rise?

The global price of crude oil has risen sharply over the past year, driving up gasoline prices in countries around the world. It’s a global trend and not just in the UK.

But we will do everything we can to alleviate this and to help the people of this country, but this is one of the reasons why the whole of Western Europe must end its dependence on oil and Russian gas.

The £12billion support we’ve already announced to help lower the cost of living includes a fuel tax freeze for the twelfth consecutive year – the longest freeze in British history.

Crude oil price changes are the primary driver of fuel price changes and our own analysis shows that crude oil price changes gradually trickle down over a 6-7 week period.

We are in regular contact with the industry and make it clear that the industry should not take advantage of increased demand to raise prices sooner than necessary.

Can we expect to see disruptions at UK fuel refineries due to sanctions or the disruption of importing fuel into the UK?

The UK is a major producer of crude oil and petroleum products.

In the case of diesel, UK demand is met by a combination of domestic production and imports from a wide range of reliable suppliers beyond Russia, including the Netherlands, Saudi Arabia and the United States. -United.

Like other countries, the UK holds oil stocks in the unlikely event of a major oil supply disruption.

The level of oil stocks prescribed by the International Energy Agency (IEA) is accepted and adopted around the world as sufficient to provide resilience in the event of a major disruption in global supply.

The UK’s oil reserves are well above the 90 days required by the IEA.

What else is the government doing to help reduce the cost of living?

We recently confirmed our intention to move forward with existing proposals to expand Warm Home Discount eligibility by almost a third so that three million vulnerable households now benefit, as well as the planned increase from £10 to £150 from October.

We are providing around £12 billion worth of aid this financial year and next to help families with the cost of living. We’re reducing the Universal Credit cut to make sure work pays, freezing alcohol and fuel taxes to cut costs, and providing targeted support to help households pay their energy bills.

The additional £12 billion support we are providing includes:

  • The National Living Wage will rise to £9.50 an hour in April, providing an additional £1,000 in pay for a full-time worker – this amount has increased every year since it was introduced in 2016.
  • A fuel tax freeze for the twelfth consecutive year, meaning the average driver has saved £1,900 since 2010.
  • Cuts to the Universal Credit taper rate and increased Working Allowance will put an extra £1,000 a year in the pockets of two million low-income families.
  • The £500million household support fund is supporting millions of households in England with essentials over the next few months.
  • The Cold Weather Payment which provides an additional £25 per week to poorer households when the temperature is consistently below zero.