Firms in London study SA as power shortages loom
Some of the world’s largest banks are dusting off their lockdown contingency plans to guard against possible power cuts in London this winter.
The financial institutions are holding regular joint talks and revisiting plans to use off-site locations or encourage home working, according to trade body UK Finance, which is co-ordinating the discussions.
Companies are also studying the experience of SA, where rolling power cuts are part of daily life.
“All firms, regardless of size, are paying close attention,” said Andrew Rogan, director of operational resilience at UK Finance. “There is no sense of panic, just everyone is making sure their ducks are in a row.”
The renewed focus comes as a result of a global energy crisis, prompting concern that outages could occur as temperatures drop.
The UK has been planning for several days when cold weather may combine with gas shortages, leading to organised blackouts.
France is expected to ask households, businesses and local governments to reduce energy consumption to avoid rotational power cuts, while Germany nationalised gas giant Uniper earlier this week to avert a collapse of its energy sector.
The situation means the biggest finance firms need continent-wide contingency plans.
An executive at JPMorgan Chase said this month the investment bank has contingency plans for all its locations. Big offices have backup generators, and there’s also the possibility to move staff between countries temporarily in case there’s an emergency in one, said Germany head Stefan Behr.
There is no sense of panic. Everyone is merely ensuring their ducks are in a row
In the UK, lenders, building societies and branch officers of overseas banks are taking part in the discussions, according to UK Finance.
Many big firms have generators and additional power sources that can supply them for at least 72 hours. They are also looking to off-site locations in London, Essex, Surrey and elsewhere that could potentially escape localised blackouts.
The experience of dealing with Covid and potential adverse weather means companies are well prepared, said Rogan.
The crisis is also pushing banks to try to cut dependency on fossil fuel. eEnergy Group, which manages energy strategy for several hundred buildings in London, has seen a “huge increase” in the past three months of financial institutions seeking to get to net zero, given the problems in the energy market, said group CEO Harvey Sinclair.
In Switzerland, UBS Group is letting temperatures in its offices fluctuate more strongly in a bid to cut power consumption. Danish banks are handing out blankets to help staff cope with lower office temperatures, while Deutsche Bank told employees this summer it was cutting back on air conditioning and turning off hot water in its German offices.
Data centres, a core element of financial plumbing, are also making sure they’re protected. Telehouse Europe, which holds servers for more than 800 customers, including banks and insurers across five sites at London Docklands, is bolstering its levels of crisis management and communicating constantly with fuel suppliers.