By Saeed Shah
http://news.independent.co.uk/business/ ... 323808.ece
The British chemicals group Ineos has warned a parliamentary inquiry that business in this country faces a "devastating energy crunch" this winter.
The company said that a cold winter would lead to "massive" rises in the price of gas, which "is very likely to put many manufacturers out of business for good".
"Following this, we expect the UK to be short of gas leading to a gas deficit emergency. This will have consequences such as 'three day weeks', wide-scale power cuts, loss of essential services such as water and sewerage and further business closure," Ineos said in written evidence to the Trade and Industry Select Committee Inquiry into security of gas supply.
According to forecasters, including the Meteorological Office, there is a 67 per cent chance this winter will be among the coldest on record. The prediction is based on measuring sea temperatures in the Atlantic.
Ineos said: "We are faced with the nightmare scenario that, in the event of very cold winter weather conditions, the UK will essentially be 'closed for business'. Much of this business will not recover and is unlikely to operate again."
The company, which is headquartered in Southampton, calculated that the "competitive gap" between the UK and European energy prices is costing the UK economy £24bn a year. Ineos said that the price disparity is "already having a devastating impact on UK manufacturing". The British government recently said it wants to see other energy markets in Europe liberalised.
Ineos continued: "We consider it untenable that as the EU's largest and the world's fourth-largest gas producer, we have nearly the world's highest prices and the severe risk of energy rationing in anything other than an average winter. It is not being overly dramatic to warn that in the event of below-average temperatures, the UK will be thrown into crisis."
Ineos complained about both government and gas industry inaction. It said that it was almost too late to do anything for this winter but it outlined a series of measures that could still ease the situation. These included making gas-fired electricity power stations test and demonstrate their ability to useother fuels.
Ineos has sales of about ⚬5bn (£3.4bn) a year. The private company is in the process of buying BP's Innovene business for $9bn (£5bn). The protest over gas prices is led by the Ineos plant at Runcorn, a former ICI facility, where products such as caustic soda are made. The site uses enough electricity every day to power a city the size of Liverpool.
The Trade and Industry Committee also took oral evidence from the energy minister Malcolm Wicks yesterday. He conceded there was "concern" about electricity rationing this winter. "I am concerned that companies get the energy they need. But that does not mean that we talk in exaggerated ways. That would be irresponsible," he said.
Mr Wicks has already described a warning about shortages from the director-general of the CBI, Sir Digby Jones, as "scare-mongering".
The British chemicals group Ineos has warned a parliamentary inquiry that business in this country faces a "devastating energy crunch" this winter.
The company said that a cold winter would lead to "massive" rises in the price of gas, which "is very likely to put many manufacturers out of business for good".
"Following this, we expect the UK to be short of gas leading to a gas deficit emergency. This will have consequences such as 'three day weeks', wide-scale power cuts, loss of essential services such as water and sewerage and further business closure," Ineos said in written evidence to the Trade and Industry Select Committee Inquiry into security of gas supply.
According to forecasters, including the Meteorological Office, there is a 67 per cent chance this winter will be among the coldest on record. The prediction is based on measuring sea temperatures in the Atlantic.
Ineos said: "We are faced with the nightmare scenario that, in the event of very cold winter weather conditions, the UK will essentially be 'closed for business'. Much of this business will not recover and is unlikely to operate again."
The company, which is headquartered in Southampton, calculated that the "competitive gap" between the UK and European energy prices is costing the UK economy £24bn a year. Ineos said that the price disparity is "already having a devastating impact on UK manufacturing". The British government recently said it wants to see other energy markets in Europe liberalised.
Ineos continued: "We consider it untenable that as the EU's largest and the world's fourth-largest gas producer, we have nearly the world's highest prices and the severe risk of energy rationing in anything other than an average winter. It is not being overly dramatic to warn that in the event of below-average temperatures, the UK will be thrown into crisis."
Ineos complained about both government and gas industry inaction. It said that it was almost too late to do anything for this winter but it outlined a series of measures that could still ease the situation. These included making gas-fired electricity power stations test and demonstrate their ability to useother fuels.
Ineos has sales of about ⚬5bn (£3.4bn) a year. The private company is in the process of buying BP's Innovene business for $9bn (£5bn). The protest over gas prices is led by the Ineos plant at Runcorn, a former ICI facility, where products such as caustic soda are made. The site uses enough electricity every day to power a city the size of Liverpool.
The Trade and Industry Committee also took oral evidence from the energy minister Malcolm Wicks yesterday. He conceded there was "concern" about electricity rationing this winter. "I am concerned that companies get the energy they need. But that does not mean that we talk in exaggerated ways. That would be irresponsible," he said.
Mr Wicks has already described a warning about shortages from the director-general of the CBI, Sir Digby Jones, as "scare-mongering".
'Devastating' UK winter ahead, says chemicals giant
'Devastating' UK winter ahead, says chemicals giant
Blame Maggie Thatcher. twenty years ago when the decision was taken to switch electricity generation to gas powered generating plants it was pointed out thyat the supply in the north sea was only reckoned to be about twenty years supply at which point we would have to start importing from countries that would be in a position to hold us to ransom, and that developing more efficient coal burning technology or investing in nuclear power was a better option. It is now twenty years later and we are going to be paying the price of such short term political thinking. Most politicians don't care beyond their own immediate time in office, and when they know they are on the way out they care even less.
Having de-nationalised our energy industries we now have the ludicrous situation where large chunks of it are owned by a nationalised energy induatry-except it's the french one.
Having de-nationalised our energy industries we now have the ludicrous situation where large chunks of it are owned by a nationalised energy induatry-except it's the french one.
'Devastating' UK winter ahead, says chemicals giant
Welcome to Europe.
~Quoth the Raven, Nevermore!~
'Devastating' UK winter ahead, says chemicals giant
posted by raven
Welcome to Europe.
This is nothing to do with europe it's UK all the way. the US has the same problems coming as does china ans everywhere else.
Welcome to Europe.
This is nothing to do with europe it's UK all the way. the US has the same problems coming as does china ans everywhere else.
'Devastating' UK winter ahead, says chemicals giant
Raven;158944 wrote: Welcome to Europe.
Don't blame europe for problems caused by our own government. If we had the foresight of the french we wouldn't be in this position now.
Don't blame europe for problems caused by our own government. If we had the foresight of the french we wouldn't be in this position now.
'Devastating' UK winter ahead, says chemicals giant
Scrat;493423 wrote: I thought England was a major gas producer. Is it more of a lack of capacity than a lack of resources? You can't get it fast enough?
Thatcher did screw up by not allowing you to build Nukes. America did the same thing and on top of that we have all kinds of restrictions on where we can drill ect. Enviornmental regulations.
Do you have any working Nuclear Reactors?
We are getting into wind power now, it seems to be working pretty well and has great promise. The French also have them along with reactors.
Actually it's mainly scottish waters the gas comes from. We were major producers but instead of using the "dividend" from north sea oil to reinvest it was used for tax cuts and to support the unemployed with little regard for the future. Twenty years ago we knew the gas was going to run out and gas from russia would be our only source and hust to make sure we had no choice the coal industry was shut down more for pliotical reasons than for economic ones, so now we import that as well. A lot of political decisions are taken for short term results with very little thought on long term the effect. It's like iiraq it's as if politicians can;'t think more than six months in advance and are surprised when the predictable outcome actually happens.
Thatcher did screw up by not allowing you to build Nukes. America did the same thing and on top of that we have all kinds of restrictions on where we can drill ect. Enviornmental regulations.
Do you have any working Nuclear Reactors?
We are getting into wind power now, it seems to be working pretty well and has great promise. The French also have them along with reactors.
Actually it's mainly scottish waters the gas comes from. We were major producers but instead of using the "dividend" from north sea oil to reinvest it was used for tax cuts and to support the unemployed with little regard for the future. Twenty years ago we knew the gas was going to run out and gas from russia would be our only source and hust to make sure we had no choice the coal industry was shut down more for pliotical reasons than for economic ones, so now we import that as well. A lot of political decisions are taken for short term results with very little thought on long term the effect. It's like iiraq it's as if politicians can;'t think more than six months in advance and are surprised when the predictable outcome actually happens.