Britain’s biggest energy users are calling on the government to address gas security after the closure of the country’s biggest storage facility. In a letter to Greg Clark, the energy secretary, a group of trade associations, unions and energy storage companies ask the government to look at the risk of a supply crunch leading to a severe price rise because of Britain’s dependence on imported gas and lack of storage capacity. The letter, signed by the leaders of the Major Energy Users Council and the Energy & Utilities Alliance, argues that Brexit “poses a clear problem” because it could make it harder to lean on imports from other members of the European Economic Area. In October the European Union introduced a “solidarity mechanism” to prevent individual countries suffering from acute shortages in gas, particularly in light of potential disruption to critical supplies from Russia. “This rising level of exposure to the vagaries of the international gas market, combined with an inadequate level of UK gas storage, will increase both the likelihood and impact of short-term demand-supply imbalances on both gas and electricity price volatility, to the detriment of all consumers,” the letter states, calling for an inquiry.
Times 16th Nov 2017 read more »