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| Version 3 | Version 4 |
|---|---|
| Gas supply fears as cold snap continues | Gas supply fears as cold snap continues |
| (about 1 hour 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. |
| 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. | 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. | "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." | "We are in communication with industry partners and are closely monitoring the situation." |
| Why is demand for gas outstripping supply? | |
| The biggest factor is the weather. The so-called "Beast from the East" is bringing temperatures well below freezing to the UK, plus extreme weather such as blizzards, boosting demand for gas from consumers and businesses. | |
| The weather has also affected gas supplies. There have been problems with pipelines from Norway and the North Sea, and in recent days, problems with pipelines from the Netherlands and Belgium. | |
| Energy analyst David Hunter of Schneider Electric said the industry used to have access to a major gas storage facility called Rough in the North Sea, but Centrica closed the site - which was more than 30 years old - last year over safety issues. | |
| This - together with other factors such as declining supplies from North Sea fields - means the UK is now more reliant on gas imports. | |
| Demand for gas is also higher due to the increased of gas-fired power stations in the UK as coal-fired power stations are decommissioned. | |
| However, at the time of writing wind turbines account for the largest share of UK energy production, at about 26%, ahead of coal at 24%. | |
| Will people still be able to use their gas central heating and cookers? | |
| "It doesn't look as if domestic consumers will be affected" by any gas supply deficit, Mr Hunter said. | |
| Energy analyst Peter Atherton agreed. "The last to get cut off is the domestic consumer," he said. | |
| If suppliers are not able to meet demand, "they will ask certain people to stop using gas", Mr Atherton said. | |
| First in line would be gas-fired power stations, then large industrial and business users. | |
| How have companies been affected? | |
| 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. | 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. | 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. |
| 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. |
| The cold snap has 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. | Two of of the company's call centres in Scotland have had to be closed due to the cold weather. |