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| Version 2 | Version 3 |
|---|---|
| Gas supply fears as cold snap continues | Gas supply fears as cold snap continues |
| (35 minutes later) | |
| National Grid has warned it may not have enough gas to meet UK demand on Thursday and has asked suppliers to provide more. | National Grid has warned it may not have enough gas to meet UK demand on Thursday and has asked suppliers to provide more. |
| In the event that there is still a deficit, large gas users such as industry and large businesses will be asked to use less gas. | In the event that there is still a deficit, large gas users such as industry and large businesses will be asked to use less gas. |
| Consumers will only be asked to use less gas as a last resort if these measures do not work. | Consumers will only be asked to use less gas as a last resort if these measures do not work. |
| Demand for gas on Wednesday hit a six-year high as cold weather swept the UK. | Demand for gas on Wednesday hit a six-year high as cold weather swept the UK. |
| "This warning has been issued in response to a series of significant supply losses resulting in a forecast end of day supply deficit," the National Grid posted on an energy data site. | "This warning has been issued in response to a series of significant supply losses resulting in a forecast end of day supply deficit," the National Grid posted on an energy data site. |
| Some pipelines carrying gas from the Netherlands and Belgium have had problems this week. | Some pipelines carrying gas from the Netherlands and Belgium have had problems this week. |
| A National Grid spokeswoman said: "National gas demand today is high and due to the extreme weather conditions, there have been gas supply losses overnight. | |
| "At 5.45am this morning we issued a 'Gas Deficit Warning' to the market. This is an indication to the market that we'd like more gas to be made available to ensure the safe and reliable operation of the national gas network. | |
| "We are in communication with industry partners and are closely monitoring the situation." | |
| Chemical company Ineos has told the BBC it is likely to cut gas usage at its Runcorn plant by 20% in response to the National Grid's request. | |
| However, the company said it did not expect the move to make a material difference, as it gets most of the heat it needs from its own energy-from-waste plant. | |
| Price spike | |
| Energy analyst Peter Atherton said the supply shortage was "potentially quite significant". | |
| If suppliers are not able to meet demand, "they will ask certain people to stop using gas", he said. | If suppliers are not able to meet demand, "they will ask certain people to stop using gas", he said. |
| First in line would be gas-fired power stations, then large industrial and business users. | First in line would be gas-fired power stations, then large industrial and business users. |
| "The last to get cut off is the domestic consumer." | |
| The amount that gas-fired power stations can scale back may be limited by a reduction in the number UK coal-fired power stations, Mr Atherton said. | |
| There was a large spike in trading prices for gas bought on the day on Wednesday, but prices for gas bought a month ahead declined slightly. | There was a large spike in trading prices for gas bought on the day on Wednesday, but prices for gas bought a month ahead declined slightly. |
| Large energy suppliers mostly buy a month ahead so they can work out pricing for consumers and cut risks to their business. | Large energy suppliers mostly buy a month ahead so they can work out pricing for consumers and cut risks to their business. |
| However, they also buy a day ahead, as do large energy users, and smaller energy suppliers. | However, they also buy a day ahead, as do large energy users, and smaller energy suppliers. |
| In addition, the cold snap has also increased the number of requests for call-outs, British Gas said, which is having difficulty answering customer queries. | |
| Two of of the company's call centres in Scotland have had to be closed due to the cold weather. |