UK industry comments on gas rationing plan — Analysis

Some industrial plants may not survive for two days if there are emergency measures taken by the government. The FT reports.

Gas rationing, which could be introduced under the UK government’s emergency plan, would lead to the closure of many factories, some of which would be unable to survive even two days, the Energy Intensive Users Group warned, according to the Financial Times (FT).

Kwasi Kwarteng (Business Secretary) is set to speak with industry representatives about the details of an emergency plan later in this week. An FT source says that ministers don’t expect gas rationing to be necessary this winter. This measure, one official said, is provided for the “Extreme” and “hugely unlikely”Imagine a scenario where Russia stops all gas supply to Europe. Norway follows suit by cutting off the supplies to Britain.

Although it seems unlikely that there will be a shortage of gas in current circumstances, winter could see things change.,” Dave Dalton, chair of the Energy Intensive Users Group, which represents the UK’s heaviest industrial energy users, said.

Dalton is the British Glass CEO. “a bit more honesty”The government has provided information on gas rationing.

“Glass is one of the most exposed [sectors]It is dependent heavily on gas as it is an ongoing process. We could only survive a matter of hours, maybe over a day but it wouldn’t be two days,”Dalton’s explanation, as reported by the FT.

European gas prices pushing higher

The British Ceramic Confederation cautioned against all forms of ceramics. “quick or short-notice shutdown”Gas supplies would not be available, as it would have a severe impact on the industry. “robust contingency plans”They are necessary.

The confederation previously expressed concerns over the soaring international energy prices, as well as the government’s policy of significant cap reductions on carbon emissions.

According to FT, other industries could be more adaptable to energy supply changes, however they called for contingency planning to avoid the risks of working on a “stop-start” basis.

European gas prices increased more than twice this year to $3,900 per 1000 cubic meters, a new record, following Russia’s invasion of Ukraine. Further price increases are likely amid reduced Russian supplies, and an impending strike by Norway, which is a key energy supplier to the continent.

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