Manufacturers are warning the DTI that Britain may run out of gas this winter. Sylvia Pfeifer examines why they are so concerned
It may have been glorious summer in Whitehall last Wednesday, but when
a bunch of manufacturers met Malcolm Wicks, the energy minister, they
were all bellyaching about what the coming winter will do to their
companies.
The businessmen, led by Kevin Farrell, the chairman of
the Energy Intensive Users Group, that represents industries such as
glass and steel, had come to warn Wicks that soaring wholesale gas
prices could force members to shut down their operations this winter.
And that Britain could run out of gas if there was a particularly acute
cold snap.
"It was an urgent meeting", says Jeremy
Nicholson, the director of the lobby group. "The pricing environment
has deteriorated rapidly in recent months and we need to act before the
next round of energy supply contracts are agreed in October."
Industry's
main concerns are twofold, Nicholson says. Soaring gas prices are
undermining the competitiveness of British manufacturers compared with
European rivals and ensuring that Britain has enough gas to maintain
supply during a cold winter.
