Climate minister refuses to rule out energy rationing for Britons this winter

Energy companies have launched new schemes offering customers money for changing basic household routines, as consumer Editor Chris Choi explains

The government says it is not advising people to reduce their energy usage but has refused to rule out rationing energy supplies this winter.

Prime Minister Liz Truss was asked in August during her Tory leadership campaign whether she could rule out energy rationing, and she replied: “I do rule that out.”

However, on Friday, climate minister Graham Stuart declined to offer the same assurance when questioned by LBC on the subject.

He said: “The National Grid, we get to do it independently, and they do their assessment. They’ve said it’s very unlikely.”

Asked again, he said “it’s impossible to…”, before being interrupted and pressed over whether the government’s position is a U-turn on Ms Truss’s pledge during her leadership campaign.

“We are not planning to have that. It is not our intention to have it and we are doing everything possible to mean that it should not happen," he added.

'It's very unlikely that we will see blackouts or shortages'

Asked about the apparent change in language on the issue, Mr Stuart said: “Events move on, as you well know. We’ve seen all sorts of threats to our energy security.”

Mr Stuart, who was conducting a series of broadcast interviews, also said rather than looking at reducing overall use, the government is supporting the energy regulator to devise solutions to provide incentives for businesses and consumers to potentially cut peak-time energy demand if needed.

He referenced the National Grid's latest risk assessment for this winter, which outlined that energy blackouts are "very unlikely".

But he added that "as any sensible government would we plan for all scenarios".

The climate minister told ITV News that if blackouts were to be used then they would be "moved around so the same people wouldn't' be hit". Hospitals and the "most important" facilities would also be prioritised to avoid being affected, according to Mr Stuart.

"One of the things we're doing is working with Ofgem, who are talking to major commercial gas users for a voluntary scheme where they would be potentially paid to reduce their usage at peak moments because it's the peak that could potentially be a challenge for us," he added.

"And likewise using that technology so many of us have in our homes now, the smart meters, and potentially having a voluntary scheme there to pay people.

Mr Stuart said the government is 'not asking' UK residents to reduce their energy usage

"Make sure they don't use their dishwasher or washing machine in peak hours. So, we just add to the flex in the system."

Concerns around the possibility of blackouts have come about as Russia's invasion of Ukraine has forced the UK to search elsewhere for energy supplies.

In what it called an “unlikely” scenario, the National Grid Electricity System Operator (ESO) said that households and businesses might face planned three-hour outages to ensure that the grid does not collapse.

Labour has hit out at the government, claiming there should have been further investment in alterative energy supplies.

The shadow equalities minister, Anneliese Dodds, said: "The reality is that very many low income people have already cut back substantially on their energy use and it's very disturbing to hear that actually many people who were already living in cold homes are starting to think about cutting back for this winter."

In 1976 the government asked Delia Smith to front the "Save It" energy campaign to help reduce public consumption.

The advert saw the English cook emphasise the importance of cooking multiple meals together and use the phrase "nowadays I think a good cook is an economical cook".

Delia Smith fronted an energy saving campaign for the government in 1976

But Ms Truss has ruled out launching a similar energy-saving public information campaign, amid warnings planned blackouts could hit the UK if power plants cannot get enough gas.

The Times reported that despite support from Business Secretary Jacob Rees-Mogg for a £15 million campaign this winter, the prime minister was “ideologically opposed” to such an approach as it could be too interventionist.

A government source approached by the PA news agency said they were not denying the report contained in the Times.

Meanwhile, it's emerged that soaring energy bills are helping to push the number of companies going out of business to levels seen during the previous global financial crisis, according to new government data.

Figures from the Office for National Statistics (ONS) have shown that the number of firms, which entered insolvency in the second quarter of 2022 has now reached its highest point for 12 years.

According to the Business Insights and Conditions Survey (BICS), on average, almost 20% of respondents said energy prices were the main concern for their business.

Overall, 5,629 companies filed for insolvency - slightly lower than the peak seen during the global financial crisis in 2008.

In England and Wales, construction, manufacturing, accommodation and food service activities, and wholesale and retail trade industries together accounted for more than half of total business insolvencies in the first half of 2022.

The data also revealed that more than one in ten UK businesses reported a moderate-to-severe risk of insolvency in August.

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