· Shortages could last until next year, says user group
· Cross-Channel suppliers put local customers first
The price of gas hit a record yesterday, leading to warnings
from the business community that it faced a potential "emergency" and
another major political row over government energy policies.
Alan Johnson, the trade and industry secretary, was forced to make an
unscheduled appearance in parliament where he insisted the gas pipeline
operator, National Grid, could cope "even were there to be an emergency
situation".
The minister accepted the problems were serious and hurting industrial
users but said there were signs of demand easing in response to the
weather-induced price spike. "We must not be relaxed about the
situation [but] it is equally important that we do not cause
unnecessary panic. The present situation does not threaten domestic or
the vast majority of commercial and industrial supply," he said.
But Edward Davey, the Liberal Democrat industry spokesman, accused the
government of incompetence. "Only last November the energy minister
told the house that Britain was 'awash with gas'. Yesterday British
industry was warned to expect its gas power supplies to be shut off ...
Labour's incompetence and inability to support British industry's basic
needs is astonishing," he said.
The price of gas hit 255p a therm in early trading yesterday - more
than four times last Friday's level. The Grid issued an unprecedented
warning on Monday that demand was outstripping supply.
