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Highlights:
- Amid an imminent energy crisis, electricity producers may be allowed to exceed their usual limits on emissions.
- The Environment Agency is drawing plans to allow this if there are warnings of power cuts during the winter.
An energy crisis is looming over the UK due to supply chain challenges. The European Union's economic sanctions against Russia for invading Ukraine have forced it to halt natural gas supplies to the region. While the UK doesn't directly depend on Russia for its supplies, it may be impacted by the knock-off effects of the challenges in Europe.
Especially in the winter, when the demand rises, there are concerns that Brits may see power cuts in the worst situation. As part of the efforts to avoid blackouts, the Environment Agency is planning to relax some pollution rules for power stations if the country is hit by blackouts this winter. This will allow them to release more toxic pollutants into the air than the usual allowance.
Image source: Lumppini, Shutterstock.com
Under the plans, electricity generators using gas and diesel-powered generators will be allowed to exceed their usual yearly limits for pollutants like nitrogen oxide and carbon monoxide. This will be the case if more energy is required to deal with the imminent shortages. Notably, both these gases are harmful to health.
The current rules limit the number of hours non-renewable power generators can run to restrict emissions.
The Agency says that the limits will be allowed to be exceeded if there are warnings of tight supplies.
Kalkine Media® explores some of the energy stocks amid the recent energy crisis
National Grid Plc (LON: NG.)
One of the leading energy companies, National Grid, is planning to introduce a scheme that will incentivise consumers to reduce their electricity usage during peak hours this winter. An FTSE 100 constituent, the company boasts a market cap of £36,500.04 million, with an EPS of 0.65. Its share price has jumped 2.99% over the past year. Shares of NG. traded 0.98% higher at GBX 1,007.00 at 12:35 pm GMT.
Centrica Plc (LON: CNA)
Centrica is another major British energy supplier and belongs to the FTSE 100 index. Centrica's market cap presently stands at £4,862.09 million as of 14 November, and the EPS is 0.21. The CNA stock has given a one-year return of 26.27% to investors. It traded at GBX 83.26, up 1.17% at 12:32 pm GMT.
SSE Plc (LON: SSE)
SSE is another FTSE-100 listed energy supplier and offers both non-renewable and renewable electricity. Its market cap stood at £17,617.01 million as of 14 November, while the EPS is 2.87. The stock's one-year return currently stands in the negative territory at -1.15%. CAN shares were trading 0.22% higher at GBX 1,631.00 as of 12:49 pm GMT.
