This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-43229297

The article has changed 9 times. There is an RSS feed of changes available.

Version 4 Version 5
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 due to the extreme weather conditions and supply issues.
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. It issued a "gas deficit warning" early on Thursday following "significant supply losses".
Consumers will only be asked to use less gas as a last resort if these measures do not work. Shortages could affect industrial users as the Grid tries to balance supply and demand by buying in more gas if needed.
Demand for gas on Wednesday hit a six-year high as cold weather swept the UK. Despite the shortfall of about 50 million cubic metres, household gas supplies should not be affected.
"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.
"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."
Why is demand for gas outstripping supply?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 biggest factor is the weather. The "beast from the east" is bringing sub-zero temperatures to the UK and with heavy snow, boosting demand for gas from both households 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. The weather has also affected gas supplies, creating problems for pipelines from Norway, 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. Energy analyst David Hunter of Schneider Electric said the industry no longer has access to the Rough gas storage facility in the North Sea that was closed by Centrica last year due to 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. These issues, along with 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. Demand is also higher due to the number 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%. Can people still use their gas central heating and cookers?
Will people still be able to use their gas central heating and cookers? Yes. As energy analyst Peter Atherton says: "The last to get cut off is the domestic consumer."
"It doesn't look as if domestic consumers will be affected" by any gas supply deficit, Mr Hunter said. If suppliers are not able to meet demand, certain users will be asked to stop using gas, he explains.
Energy analyst Peter Atherton agreed. "The last to get cut off is the domestic consumer," he said. First gas-fired power stations will be asked to scale down gas use, followed by large industrial and business users.
If suppliers are not able to meet demand, "they will ask certain people to stop using gas", Mr Atherton said. A Department for Business spokesperson said "domestic households should not notice any disruption to their supply".
First in line would be gas-fired power stations, then large industrial and business users. Will my gas bill rise?
How have companies been affected? A short-term increase in on-the-day wholesale prices is not likely to feed into household bills, the spokesperson added.
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 cold snap has increased the number of requests for call-outs for engineers, British Gas said, which is having difficulty coping with the volume of customer queries.
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. Two of the company's call centres in Scotland have closed due to staff shortages following the cold weather.
Are companies being affected?
Chemical company Ineos told the BBC it is likely to cut gas usage at its Runcorn plant by a fifth 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.
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.