During her Tory leadership campaign, Ms Truss had pledged that there would be no energy rationing in the UK under her leadership. Europe is facing a major fossil fuel energy crisis triggered by Russia’s invasion of Ukraine, which has sent prices soaring while threatening energy security. As Vladimir Putin recently cut off gas supplies flowing through Nord Stream 2, EU countries have begun rationing their gas in a desperate bid to keep the lights on during the winter.
In the face of such a nightmare scenario, Renaud Foucart, a Senior Lecturer in Economics at Lancaster University warned that “whether Liz Truss likes it or not”, British consumers should expect some form of energy rationing this winter.
The EU’s energy woes are primarily caused by the decreased supply from Russia, a major energy exporter to the bloc.
Even though the UK was not reliant on Russian gas, accounting for 4 percent of its supplies, Europe’s interconnected gas supplies, reliance on global gas markets and limited capacity to import and store means gas supply and demand changes affect every European country’s ability to secure enough energy.
Dr Foucart wrote: “We saw this recently when Germany announced it had filled its storage faster than expected and UK gas prices fell by a whopping 29 percent.
“Similarly, when Germany was on a buying spree to fill its storage, prices soared for everyone.
“As the UK has very limited storage capacity, it is particularly subject to such ups and downs.”
In a Twitter thread, he noted that in the UK, “there will be some form of rationing, either due to market prices, disorganised rationing, or organised one.
Looking at each of these three scenarios, he wrote the first form of rationing, through market prices is already taking place.
He said: “Bills so high firms stop producing. Households cut as much as possible.
READ MORE: Scholz’s energy plans torn apart as Germany to halt nuclear shutdown