Government ministers will undertake a fresh review of the UK’s gas supplies after major disruptions late last year ripped through the market, driving prices to multi-year highs. The UK gas price rose to its highest level since 2011 after an explosion in Austria compounded disruption following outages in Norway and a crack in the country’s main North Sea pipeline system. Energy ministers and regulators have since faced growing industry calls to review their stance against building new gas storage sites amid warnings that price shocks are likely to worsen as the country’s gas reserves dwindle. In a letter, seen by The Sunday Telegraph, energy minister Richard Harrington assured a group of concerned energy companies and trade unions that the Government would turn its attention to concerns over the recent gas market shocks. The fresh approach to gas security is a major step-change for the Government, which in the past has focused on the country’s ability to import gas when needed, but has ignored the crippling cost of relying on foreign sources when market prices spike. The regulator has also doggedly countered concerns over the UK’s gas supply security by focusing on physical gas flows into the British gas grid rather than the price shouldered by consumers.
Telegraph 27th Jan 2018 read more »