http://www.thisismoney.co.uk/news/article.html?in_article_id=403952&in_page_id=2\
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Firms could shut in gas shortage

Tim Shipman and Sean Poulter, Evening Standard
27 September 2005

BRITISH industry is facing blackouts and thousands of
job losses this winter
because of gas shortages, it emerged yesterday.

The harsh winter which is forecast by the Met Office
could see gas and
electricity to some major industries simply cut off.

The situation has been condemned by business leaders
who yesterday accused the
Government of failing to make proper plans to head off
a gas crisis.

They believe there will not be enough to heat homes,
provide fuel for power
stations and ensure big business can operate.

North Sea supplies are fading and Britain will be
reliant this winter on gas
imported through a pipeline from Europe under the
Channel, and on supplies
held in storage tanks. There are fears that neither
the pipeline nor the
storage facilities will be able to cope with a cold
winter.

If supplies run low, business will be told to close to
ensure that lights and
heating stay on in homes, hospitals and schools.
Energy Minister Malcolm
Wicks admitted there was a problem and that businesses
would be first in the
firing line.

'We could have a tight winter,' he said. 'It's not
about switching off the
domestic customers but there could be problems for
industry.' The
Confederation of British Industry accused ministers of
putting the economy
and thousands of jobs at risk by failing to get to
grips with the problem of
energy shortages.

It claimed the country has just 11 days of gas held in
storage, while most
European nations have around 55 days. CBI
director-general Sir Digby Jones
said: 'I saw the long range weather forecast this
morning and it says it's
going to be a cold winter.

'If that happens they are going to throw the switch on
business.' He said the
Government had failed to take steps to ensure planning
permission for new
storage facilities was granted in recent years.

'The Government has known for years that we were
eventually going to have to
buy it in,' he said. 'But two years ago most local
authorities declined
planning permission for gas storage units.'

Sir Digby said the country needs to look at building a
new generation of
nuclear power stations. 'We have to have a proper
debate,' he added.

Fears over shortages of gas, coupled with the need to
import expensive
supplies from Europe have led to dramatic price rises
over the past two
years.



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