UK staring at blackouts and gas cuts amid extreme cold in January

Predicting several days of winter where the colder weather could be coupled with gas shortages, the UK will reportedly undergo organized blackouts for industry and homes in January, Bloomberg reported. The country is expected to face a power crunch totaling about a sixth of peak demand even after emergency coal plants are online, the government's latest “appropriate worst-case scenario” suggests.

The UK is expected to set in motion emergency measures for four days in January to conserve gas because of below-average temperatures and reduced electricity imports from Norway and France, Bloomberg reported.

An extremely cold winter would lead the UK to approach Europe for pipeline shipments of gas. However, the problem here is that the continent is already facing low supply due to curbs by Russia.

One option that the country has is to restore its biggest natural gas storage site, Rough. Owner Centrica Plc says its return might translate to 10 LNG cargoes which will make hardly any difference.

Further, the situation in Britain mightdeteriorate if electricity supply along cables connecting to France, Norway, Belgium and the Netherlands is curtailed. Norway is also looking to cut down on power exports to avoid domestic shortages.

To make things worse, National Grid has already warned of an uptick in electricity prices this winter. The people of Britain are staring at average annual energy bills of above £4,200 ($5,086) in January, which currently stand at just under £2,000.

Prime ministerial candidate Rishi Sunak hadannounced a £400 discount on household tariffs earlier this year when he was Chancellor of the Exchequer. His opponent Liz Truss has promised immediate tax cuts and the dropping of green levy from energy bills.