Firms relieved as gas crisis eases

The number of firms told to shut off their gas has been reduced
12 April 2012

The number of major UK firms told to turn off their gas to help avert a crisis as demand soared amid the big freeze has been reduced to 27, the National Grid said.

Ninety five big companies and industrial manufacturers across the UK were told to switch from gas to alternative fuel such as coal and oil on Thursday.

Fifty-five firms were affected across the East Midlands, 39 in the North West and one in East Anglia.

But National Grid said the gas supply would be switched back on on Friday for many of those affected as the UK's critical gas position has eased - although 12 firms in the East Midlands and 15 in the North West will remain without gas, it added.

The company can invoke clauses in contracts that firms have with suppliers to ask them to switch to alternative sources of power when necessary.

Firms sign up to these contracts as they allow them access to cheaper gas.

National Grid, which did not reveal the companies affected, said this was the first time it has had to ask firms to do this since 2003 - and not on this scale for 11 years.

The operator of Britain's gas network was forced to issue its second gas alert in three days on Thursday as plunging temperatures saw demand surge and as supplies hit. It later sought to assure that the market had been "quick to respond", with supplies now coming in from liquefied natural gas terminals and from storage.

Its gas balancing alert came as gas demand was expected to hit 454 million cubic metres - higher than the all-time record of 449 million in January 2003.

A National Grid spokeswoman said technical problems had led to a 52 million cubic metres shortfall in supplies from the Langeled pipeline, which pumps in gas from Norway.

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