A new report from National Gas that reveals a decline in Britain’s gas storage capacity, driven by the shutdown of the Rough site which is owned by Centrica, increases the UK’s reliance on imported liquefied natural gas (LNG) during periods of high demand.
Recent deals struck by Centrica means the firm controls c.10% of gas needs and also now owns the Grain LNG import facility in Kent.
The National Energy System Operator’s winter outlook report suggests that electricity supplies for the winter looked mostly healthy, but with a risk of some “tight days”.
A spokesperson for the End Fuel Poverty Coalition commented:
“Britain’s energy security should never depend on the commercial decisions of one private company. Yet with Centrica controlling vital gas infrastructure and imports, the country is now exposed to their boardroom choices.
“By refusing to refill Rough ahead of winter, Centrica has effectively weakened one of Britain’s key defences against cold snaps and price spikes. This leaves households more reliant on expensive imported gas and more vulnerable to market volatility.
“This also highlights that, even if new gas fields are approved, the North Sea will be unable to produce enough gas to cover our home heating needs by 2027 – leaving the country reliant on imports.
“The Government must not leave our energy security to chance.
“Alongside treating gas storage as critical national infrastructure, we also need to continue the shift away from gas by investing in homegrown renewable power – so we’re no longer at the mercy of fossil fuel markets.
“But to support this shift, we must also ensure the electricity system is ready and reform electricity pricing. While National Grid expects sufficient capacity this winter, there will still be tight days where supply and demand are finely balanced. Expanding renewables and electricity supply is essential if we are to meet future demand from cleaner heating and ensure a secure, affordable energy system for all.”