Review launched on UK’s energy security
Tony Blair has today helped open a new gas pipeline to Norway, as the government begins a consultation on how to secure Britain’s energy supply.
The proposals put out for responses include a legal obligation for energy suppliers to have enough gas for households and industrial use even in the coldest winters, and new measures to help individuals use gas more efficiently.
Britain is becoming increasingly reliant on imported gas – by 2020, 80 to 90 per cent of all gas used in the country will be from overseas, primarily from Norway, Algeria and Qatar but also increasingly Russia, the Caspian sea and Nigeria.
This summer’s energy review warned that although there was a minimal risk of this supply being disrupted in the near future, after 2012 this risk became “significant” and could have a “very high” cost to the economy.
Ministers are currently pushing for greater liberalisation of the European energy market to ensure companies across the company were able to sell energy when and where it was needed, at a competitive price.
The review also outlined how Britain could diversify its energy use, including greater use of renewables and nuclear energy, as well as proposals on efficiency to ensure people and companies make the best use of the energy they use.
In addition, it paved the way for a further review of how secure Britain’s existing energy supplies were – not only is the country dependent on imported gas, but also imported coal, which last year made up three-quarters of all coal used.
Announcing this consultation today, energy minister Malcolm Wicks said: “It is for the energy industry to deliver security of supply and we’re already seeing investment to the tune of £10 billion in new gas infrastructure.
“But, as a government, we need to make sure the regulatory framework remains the right one and that the incentives are the most effective.
“We’re consulting on possible changes to the energy market and want to hear views and see evidence of whether these, or other approaches, are needed to make sure the gas keeps flowing.”
Today Mr Blair attended the official opening ceremony for the Norwegian Langeled pipeline, which is set to deliver 20 per cent of the UK’s average winter gas needs and which he said would ensure “a new stable and secure supply” of energy.
“We need energy to heat and light our homes, to power our businesses, and to transport people and goods. Without it, we could not function as an economy or as a modern society,” the prime minister said.
He added: “Without action to ensure reliable supplies and replace power plants, there will be a dramatic shortfall in our energy capacity and risks to our energy security over the next few decades.”
However, shadow energy spokesman Alan Duncan warned that ministers should stop announcing energy reviews and publish the promised white paper that would set out exactly what it intends to do.
“The government have said for ages that urgent decisions need to be taken, but clearly they are not going to do anything until Tony Blair has gone,” he said.
