British Gas owner Centrica: UK has less than a week’s worth of demand for gas in store
UK gas stores have fallen to “concerningly low” levels amid freezing cold temperatures, the owner of British Gas has said.
Centrica said the UK now has less than a week’s worth of demand for gas in store.
On Thursday, stocks at UK gas storage sites were 26 per cent lower than the same period last year, leaving them about half full, the energy giant said.
Gas inventory levels have come under pressure from the cold weather conditions and the end of Russian gas pipeline supplies through Ukraine at the end of last month.
Natural gas accounted for 53 per cent of power in the UK on Friday, according to National Grid data, with renewables meeting just 16 per cent of the country’s needs.
The UK has among the smallest amount of gas storage of any major European countries, with capacity to hold enough gas for 12 average days or 7.5 peak winter days.
Germany has enough for 89 days, France has 103 days and the Netherlands 123 days.
Centrica boss Chris O’Shea said storage levels are “concerningly low”.
He said the clean energy transition would mean the UK needs to use more energy storage systems to help meet demand.
“We are an outlier from the rest of Europe when it comes to the role of storage in our energy system and we are now seeing the implications of that.
Energy storage is what keeps the lights on and homes warm when the sun doesn’t shine and the wind doesn’t blow, so investing in our storage capacity makes perfect economic sense.
“We need to think of storage as a very valuable insurance policy.”
Centrica operates the country’s largest gas storage site, Rough, a facility under the North Sea off the east coast of England.
Despite being full ahead of winter, current gas inventory at Rough is about 20 per cent lower than at the same time last year, the company said.
Centrica is looking for fresh help from the Government to fund a multibillion-pound investment to increase the site’s capacity.
Number 10 ‘confident’ of supply
It comes as the UK recorded its coldest night of this winter so far on Thursday, with more freezing temperatures expected in the coming days.
The Met Office has said Friday will see “the start of a change to our weather”, but this is expected to make only “limited progress” and patchy rain, sleet and snow is expected across parts of south-west Britain.
A No 10 spokesman said: “We are confident we will have a sufficient gas supply and electricity capacity to meet demand this winter, due to our diverse and resilient energy system.
We speak regularly with the national energy system operator to monitor our energy security, and ensure they have all tools at their disposal if needed to secure our supply.
“Our mission to deliver clean power by 2030 will replace our dependency on unstable fossil fuel markets with clean, homegrown power controlled in Britain, which is the best way to protect bill payers and boost our energy independence.”
Reports the UK has been on the verge of an energy blackout are “not true”, the spokesman added.
Jess Ralston, head of energy at the Energy and Climate Intelligence Unit thinktank, said the Government should focus on cutting demand for gas amid volatile international prices.
She said: “Unless the UK starts to reduce its demand for gas then we’ll just become more dependent on imports from abroad, with prices set by the international markets.
“When gas prices rise in Europe and across the world, they rise in the UK too; more drilling in the North Sea is a red herring solution.
“Energy independence and stabilised bills will come from insulating houses, moving away from gas boilers to electric heat pumps and building out more renewables so that we aren’t as reliant on gas for power.”
Alex Daniel – Press Association