The National Grid, responsible for running Britain's gas and
electricity pipes and wires, yesterday issued an unprecedented warning
that the country was in danger of not having enough gas to meet demand.
t issued its first-ever "gas balancing alert" to the market, telling
traders that gas demand might have to be reduced, initially for
businesses. The move sent wholesale prices spiralling up fourfold.
The British gas supply market has been caught out by unexpectedly cold
weather and a technical problem: the country's only significant gas
storage facility on the Rough offshore field in the North Sea is out of
action due to a fire. Centrica, which operates Rough and runs the
British Gas residential supply firm, said it could not be sure when it
would get the emergency supply facility back into action.
Wholesale gas prices have risen to their highest level in four months,
increasing the likelihood of further hikes in domestic gas bills which
have already increased by a quarter in recent weeks.
The gas crisis will restart the political debate in the European Union
about the continental energy market. Despite a pending shortage of gas
in Britain which could lead to some manufacturing companies having
their supplies cut off, there has been little help from France, Germany
or the Netherlands where supplies are still plentiful.
The price of wholesale gas in Britain hit 250p a therm yesterday, three
times more than in the Netherlands. Despite this, London gas traders
said they were struggling to source new supplies. The newly-enlarged
Interconnector pipeline from continental Europes was running only
half-full, they said.
National Grid confirmed it had posted a gas balancing alert but
insisted that this did not mean the country was about to run out of
gas. "It is just a signal to the market that there is an increased
possibility that there might need to be a reduction in gas demand,"
said a spokesman. He added that some large industrial users might have
to forego supplies.
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Complete article The Guardian
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