Energy Minister Charles Hendry has stressed the importance of maintaining a secure gas supply as it continues “to play a vital role in keeping the lights on.”
Mr Hendry said: “As we become increasingly dependent on imported gas, we are making it a priority to take steps to maximise our gas security of supply- we will be legislating on gas security in the forthcoming Energy Security & Green Economy Bill to give Ofgem new powers to sharpen the commercial incentives for gas companies to reduce the likelihood, duration, or severity of a gas shortage.”
The report by Redpoint, ‘Gas Future Scenarios’, was commissioned by the Energy Networks Association the industry association for Gas and electric networks, and shows that gas is key to the UK economy.
ENA chief executive David Smith said: “Compared with scenarios that phase gas out of the energy mix, under certain circumstances, there could be savings of up to £700 billion.”
Mr Smith added: “Redpoint’s report clearly shows that by strengthening our gas supply and network, it can play a major role in the solution to our energy needs and achieving climate change targets.”
Gas is currently delivered to nearly 60 million people in the UK and latest figures show that gas provides over half of the UK’s energy demand.