Households to pay 10p extra per month for new gas supply insurance deal

Energy regulators have finalised an emergency deal with the owner of a key pipeline from Belgium to guarantee gas flows into the UK during the winter months. This intervention ensures that the system can handle potential high-demand scenarios if critical infrastructure faces disruption.

The costs of this agreement will be shared by consumers through an addition to energy bills. Despite these measures, experts warn that the UK remains dependent on imports, which are currently predicted to be expensive due to international market pressures.

Why the deal was made

The arrangement with Interconnector Limited prevents a planned reduction in gas pipeline capacity. Without this, there was a risk that supplies might fall short during a worst-case scenario involving freezing temperatures and failing infrastructure.

Regulators described the agreement as an essential insurance policy. It serves as a temporary measure to keep gas-fired power stations running at full capacity when renewable energy output is low and demand is high.

The impact on energy prices

Households will see an extra 10p added to their monthly gas bills to cover the cost of the pipeline maintenance. This equates to an annual cost of roughly £1.19 per household.

Beyond this specific fee, energy experts anticipate that overall gas and electricity prices will remain elevated. Because the UK relies on importing energy, it must compete with European neighbours for supplies, often paying higher prices to secure these resources.