Introduction

2022 has been a turbulent year for energy. According to a report by IEA, in the first half of 2022 gas prices in Europe increased fourfold and coal more than threefold from the same period in 2021. This resulted in wholesale electricity prices more than tripling in many markets, including the UK electricity market which sources its electricity supply from large coal and gas power stations. The following blog will detail the electricity consumption statistics for the first two quarters of 2022, breaking it down by sector. We will also detail a predicted forecast of the electricity market in 2023.

2022 Electricity Consumption Statistics

The electricity consumption data below is from a report looking at UK April to June 2022 energy consumption, provided by the Department for Business, Energy and Industrial Strategy.

Domestic Electricity Consumption

The consumption of electricity from the domestic sector decreased substantially in Quarter 2 of 2022, decreased from 15.8 per cent to 21.7 TWh, the lowest value since Quarter 3 in 2019. This decrease reflects the ease of COVID-19 restrictions in place during the same months in 2021, which meant that people spent less time at home and were comparatively using less electricity. 2022 also saw warmer temperatures in April and May, which reduced the electricity demand for heating. This decrease in 2022 may also reflect customers’ efforts to reduce consumption because of the soaring electricity prices.

Non-Domestic Electricity Consumption

Both non-domestic sectors saw a slight increase in consumption levels in Quarter 2 2022 compared to the same period in 2021. The lifting of COVID-19 restrictions meant that businesses and industries could return to normal operations during this period, however the increase in demand was partially offset by the warmer than average temperatures.

The industrial sector consumed 0.8 percent more electricity compared to Quarter 2 2021 and comparably, the consumption by the other final users, including the commercial sector, increased by 0.6 per cent in Quarter 2 2022 compared to the same 2021 period.

Total Electricity Consumption

The total consumption seen by Quarter 2 of 2022 increased by 8.2 percent compared to the same period in 2021, in contrast to a 5.5 percent decrease in total demand. This resulted from the UK becoming a net exporter of electricity in Quarter 2, with net exports of 4.0 TWh.

What does all this mean?

In 2022, the UK saw rising costs of energy combined with warmer-than-average temperatures, resulting in a decrease in domestic energy consumption. On the other hand, the UK saw business re-open fully after COVID-19 in 2022, which alongside the UK becoming a net exporter of electricity, resulted in an increase of total energy consumption.

This overall increase in consumption is one reason why regions across the UK have been warned about potential blackouts or power cuts in the 2022/23 winter season, as the National Grid may struggle to meet energy demands.  

Electricity Market Forecast for 2023

With the ongoing conflict with Russia and Ukraine, Europe is preparing to reduce its reliance on Russian fossil fuel imports by hastening its clean energy transition heading into the new year. The continued energy price crisis is fuelling debate on wholesale electricity market design, while governments are trying to cushion high electricity prices with diverse support schemes.

The Economist Intelligence Unit or EIU have predicted in their Energy Outlook 2023 report that global energy consumption will increase by only 1.3% in 2023 amid a slowing economy. Despite decarbonisation targets, coal consumption could grow marginally to compensate for gaps in gas supplies, and more extreme weather events could force many countries to fall back on fossil fuels, delaying the energy transition.

However, EIU also predicted that renewable energy consumption will surge by about 11% and the energy crisis will prompt some governments to backtrack on efforts to phase out the use of nuclear power.

There are large uncertainties about electricity in 2023. The International Energy Agency’s report detail that the main uncertainties affecting this forecast for electricity demand are primarily related to fossil fuel prices and potential economic growth. As of mid-2022, the global electricity demand growth in 2023 is expected to remain on a similar direction as this year. Strong renewable energy growth of 8% and recovering nuclear generation could also displace some gas and coal power, resulting in the electricity sector’s CO2 emissions declining by around 1%.

Conclusion

With the National Grid’s warning about potential power cuts this winter, many homes and businesses are worried about losing power, as well as the financial impact of rising gas and electricity prices heading into the new year. The recent cold snap this month has already started to test the UK’s efforts to prevent winter power cuts, and many are looking for ways to cut energy costs. The National Grid are providing an Off Peak Energy rebate Scheme from November to March to help prevent power outages and ensure energy sustainability while helping homes and businesses save money.

Your business shouldn’t be left in the dark this winter! We have provided reliable backup power solutions to a variety of sectors across the UK. Shenton Group designs, supplies, installs and maintains reliable backup power solutions, and offers 360 degree support.

To ensure your business operations remain unaffected by electrical outages, get in touch with the UK’s leading technical experts today for peace-of-mind through even the chilliest months ahead.

Back in October, the National Grid warned that businesses and households in the UK could experience three-hour power cuts this winter due to the energy crisis and gas shortages. These strategic cuts would be an ‘unlikely’ scenario but would be carried out at peak times in the morning, or more likely between 4pm and 9pm in an effort to reduce the total energy consumption by around 5%.

In response to this, the National Grid launched a new off peak energy rebate scheme, Demand Flexibility Scheme, at the start of this month in response to the risk of blackouts this winter and the energy crisis. This scheme can help reduce energy consumption over peak times when the demand for energy is high, but how does it work and how much money could eligible homes and businesses save on bills if they sign up?

How Does the Demand Flexibility Scheme Work? 

This scheme is set to run from November to March 2023 and works by predicting when there will be a shortfall of energy. Participating energy suppliers will get 24 hours’ notice of a predicted shortfall and will then ask customers to curb their energy use at a certain time.

One way to lower your energy consumption is to avoid using appliances and products that use a lot of power, for example running dishwashers and tumble dryers earlier or later in the day or if you have an electric car, charging it outside the peak times.

You won’t need to switch off your heating or lighting and you can still use your oven to cook food but reducing your overall energy use wherever possible will help save power and will shave money off your bills in the long run.

Who is Eligible for the Scheme?

Currently, this scheme is being rolled out and implemented by energy suppliers and will be monitored using a smart meter, so only customers with smart meters will be able to take part in the scheme. Find out more about the suppliers that are known to be running the scheme and how much you could save on bills below.

British Gas

More than 3.5 million of its customers should be qualified, but the firm hasn’t provided any information on how to apply or how much you could be eligible to receive back. Please keep a watch on your emails and the British Gas website as registration should be up soon.

Ovo Energy

Ovo Energy, which is running its own trial version of the scheme, said that a typical household uses a fifth of their daily energy between 4pm and 7pm and customers could make a saving of up to £100 if they signed up to use energy at greener times of the day. Sadly, this version of the scheme isn’t a part of the Demand Flexibility Scheme and only 5,000 OVO customers will be able to participate in the trial. Those able to sign up will be informed by the company.

Octopus Energy Saving Sessions

According to the business, all Octopus smart meter users (about 1.4 million consumers) are eligible and can earn up to £100 in total by saving £4 per kWh compared to their average usage. Users are able to sign up on the energy supplier’s website.

Both E. On and EDF haven’t announced details of their schemes yet but have said they will run them. If you are interested in learning more about the scheme and your eligibility, it is best to check with your energy provider and their website for further updates.

Preparing for Potential Blackouts

The National Grid anticipates that this plan will prevent the need for blackout warnings this winter by reducing demand by around two gigawatts, or enough to power about 600,000 homes. However, blackouts could still be a possibility.

If you are worried about power outages affecting your business this winter, we can help. At the Shenton Group, we provide a complete generator rental service to commercial clients. Renting a diesel backup generator is a fantastic choice to explore if your organisation needs to maintain crucial operations, but don’t wait until the last minute. Read our guide on generator rental for your business here.

Speak to the UK’s Leading Technical Experts right away to hire a backup generator or to learn how to safeguard your company from power disruptions this winter.

Over the past 24 months, Shenton Group has been heavily recruiting sales, operations, and engineering staff across the UK to meet the increasing demands in the power industry. It was just last week that we welcomed four new engineers to the team.

Stuart, one of our new Generator Rental Engineers, said;

“I was surprised by the amount of thought and care that had been put into our onboarding. We were made to feel very welcome and was introduced to everyone in the office and given a tour of the facilities. We were all given new phones, laptops, branded merchandise and even a bottle of wine; every detail had been thought of.”

Dedicated Team

In the kitchen sits our long service board, which celebrates our employees’ hard work and dedication. Photos hang pegged on a clothesline like display, gathered in five, ten and fifteen-year milestones, all the way up to thirty years plus! 

“I really feel the family vibe here, and that employees are valued. It feels like a great place to work”. “I can see myself working here for a long time too!” – Luke, newly recruited CHP Engineer.

Roland Taylor, one of our Technical Support Engineers, has been with the company for over 31 years! He was one of the original team that started with Richard Meek, our founder. As a result, Roland has experienced first-hand the company going from strength to strength. 

“It has been rewarding to see the company grow. I remember when we worked on small scale 3kw generators out the back of a cow shed down in Orchid Hill, Andover. There was only about 6 of us then, and now there is nearly 100! I love what I do and have done for the last 30 years!”

Shenton Group Technical Team Recruits

Shenton Group’s in house tech team has expanded. We are pleased to welcome Andrew, a fully qualified Mechanical Engineer with nearly eight years of industry experience. Andrew has hit the ground running and is producing technical designs to client’s specifications.

“I enjoy problem-solving, and every project’s requirements are different. I have been really welcomed into the team. It is a nice place to be.”

Delivering the very best power solutions to the nation carries tremendous responsibility, technical challenges, and great variety. Therefore, we are always on the lookout for high calibre personnel. The work that we do is niche and highly specialist. Below is a list of roles that we are on the lookout for:

• Generator service engineers
• Generator installation engineers
• Generator commissioning engineers
• Generator controls engineers
• UPS service engineers
• UPS installation engineers
• UPS commissioning engineers
• CHP service engineers
• CHP installation engineers
• CHP commissioning engineers
• CHP controls engineers
• Electricians
• Gas engineers
• Project managers
• Estimators

Join Us

Shenton Group is a corporate business with people at heart. We work hard to build a culture where our employees feel happy and supported. Would you like to join the Shenon Group family? To view a full list of our current vacancies and job perks, please visit our careers page.