Key Sentence:
- The government will hold urgent talks with energy industry officials amid growing concerns about rising wholesale gas prices.
- Economic Minister Quasi Quarteng spoke with gas suppliers and others on Saturday to find out how significant the price spike would be.
High demand worldwide, problems with maintenance Government Discussions of some gas systems, and lack of solar and wind power are causing the increase. High prices have led to the closure of two of the UK’s major fertilizer plants.
Government sources said there was no threat to gas supplies to the UK. And there was an impact on small energy companies who may be most exposed. However, they were told that staff considered whether rare products such as fertilizer might be imported from abroad. Natural gas prices are at record highs as the global economy begins to recover from the Covid crisis.
Mr. Kwarteng will speak with executives from gas producer National Grid, suppliers such as Scottish Power. EON, EDF, and regulator Ofgem to learn the extent of the impact of the price spike. High prices have led to the closure of fertilizer plants in Teesside and Cheshire. Resulting in a significant reduction in the supply of carbon dioxide – a by-product of fertilizer production – used in many industries. Meat processors are also negotiating with the government on this carbon shortfall due to its use in meat production.
The gas is used to electrocute pigs and chickens before slaughter and also during the packaging process.
A government source said supplying CO2 to nuclear power plants and hospitals would be a priority. A government spokesman said: “The UK uses access to many different gas sources to ensure that households. Businesses, and heavy industry get the energy they need at a fair price.
“We are closely monitoring the situation and are in regular contact with food and agriculture organizations and industries to help them cope with the current situation.”