THE UK will wargame a gas supply crisis, to test how resilient the energy system is in the case of emergency shortages this winter.

The National Grid is readying critical stress tests with a specific focus on potential shortages caused by Russia's war on Ukraine.

City A.M. understands the tests will take place over two days next month, and over two further days in October.

It will be carried out by the government, regulators and major energy companies The "National Grid Exercise Degree" has taken place annually for the past 26 years.

This time, it will take into account historic volatility in the energy markets, with Kremlin-backed gas giant Gazprom cutting gas flows via the key Nord Stream pipeline to just 20 per cent last month.

With growing fears Russia will entirely halt gas supplies into Europe in retaliation to western sanctions imposed on the country following its invasion of Ukraine, the prospect of shortages feels more realistic this year.

If it is determined there are inade- quate supplies, the National Grid will trigger a gas supply deficit warning and hold emergency talks with heavy industry.

The National Grid is currently in negotiations with domestic heavy industry over possible factory shutdowns if there are severe disruptions to supplies this winter, It has warned factory owners could suffer energy rationing if they do not accept payments to switch off machiner y.

City A.M. understands industry groups have told the National Grid they could use diesel to power some sites but that local authorities would need to agree to waive environmental permits.

Large industrial operators have called for more advanced notice of a gas supply crunch than in previous emergencies. They have argued they need at least two or three days' notice to make adjustments, rather than a requirement to shut off operations within 24 hours.

The order of priority for supplies is households, followed by power generators and then refineries.

The story was first reported in The Sunday Telegraph.

(c) 2022 City A.M., source Newspaper