Gas crisis - made worse by Goverment Decision 2017

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Reading an interesting article today from 2017. Looks like the government decided that the “Rough” gas facility near Easington East Yorkshire could be closed, effectively meaning the UK had virtually no gas storage. Apparently they are looking to try & partially reopen at the moment & we’re granted a license to reopen in July. Would it be reasonable to assume that if the country had access to large gas storage that the price cap would have been lower? Why is no one talking about the government decisions leading to fuel poverty for so many people? Article attached here for those interested. Also the biggest nuclear power station in the UK also closed in July. Why didn’t the government intervene & keep it open through the winter & have it decommissioned next year? AIBU yes, the government should have intervened ? assets.publishing.service.gov.uk/media/5a30ff94ed915d2cf25281ac/rough-final-decision.pdf

I agree and I believe I read somewhere that Liz Truss was involved in this decision.

There's a long history of short-termist (including greenwashing) decision making by a long succession of governments on both sides of British politics. We've never had a long term energy vision and that makes planning susceptible to party-political interference where you rarely have to think more than 5-10 years ahead.

Germany has 3 months worth of storage, i don't really know what 10 days would do for UK gas prices? as 3 months worth hasn't helped reduced their bills or any other european country with significant storage.

UK energy production is all done via private business, its priced as a global commodity, either gas oil or electricity, suppliers like Octopus then buy it & sell it to us.

All this talk of new licences, nuclear power or more renewables makes little difference as its all priced globally.

Just a total lack of resilience- cutting everything and privatising everything with no thought for the future.

I think it was a bad decision, but doubt that it has had much, if any, effect on the price of gas. It could have smoothed out any irregularities in supply.

Yes I'm sure I read that too a few days ago.

Doesn't bode well does it

One of the reasons gas prices have been high is because European countries have been desperate to fill their storage capacity. They're now reaching full capacity, which means there is no longer as much pressure to keep buying gas at high prices, which is one of the reasons wholesale gas prices are starting to go down: www.reuters.com/article/europe-gas/europe-gas-price-slip-as-storage-fills-and-traders-take-profits-idINL8N3062AT

I might be wrong, but my understanding is that the UK has less room for manoeuvre this winter because it has limited storage. If prices continue to drop that's fine, but if prices increase again it will have no choice but to pay up whereas at least other countries have now built up decent reserves.

@Alaimo it does make sense for countries to fill up their storage facilities. It seems as though the rest of Europe have been doing so like you mentioned. It is crazy that we do not have any storage . Would be very likely that when Russia cut supplies in the winter the Eu will cover their own countries first & the UK will end up with black outs

The UK does not have anywhere near as much gas storage as many European countries and one of the main reasons is that the UK doesn't need anything like as much. About 50% of our gas comes from UK supplies in the North and Irish seas, whereas Germany has only 10% domestic supplies. Around 30% comes from Norway (under long term contracts so it is a secure source). So 80% of the gas we need is effectively "stored" in the North Sea and just has to be brought onshore.

Around 15% comes as LNG (mainly from Qatar and US. We no longer get LNG from Russia). Due to this LNG, and the fact that we have 3 LNG terminals and most European countries have none, through summer we have more gas than we need, so we export it, particularly to Belgium and Netherlands to fill up their storage. Agreements are in place so that on the UK's coldest winter days, this flow can be reversed and gas is sent from their storage back to the UK.

What @jcyclops said. Rough isn't as important as you think OP.

@DdraigGoch i really hope you are right

@jcyclops what would happen if the EU have issues and Norway has to divert supplies that were meant for the UK. Wouldn’t be out the realms of possibility in our current world. Declare a force majeur

I suppose they thought they could pinch a few pennies doing this, with nary a thought of future difficulties arising.

Typical Tory impulse based on knowing the price of everything but the value of nothing.

@jcyclops NS Gas is "sold" on global markets, its not for our exclusive use in that respect or we'd still be paying pre 2022 prices on half our gas use.

If your argument is correct, why did we have large storage facilities when NS gas production was much higher?

..and if it wasn't important, perhaps tell that to the Govt who are desperately trying to get Rough re opened asap.

The full privatisation of NS gas/oil/renewables has come back to really hit us, we are being effected by Putins actions as if we never had our own gas and the worlds largest amount of wind energy.

YANBU but there have been dozens of stupid short-sighted decisions by governments, because they are only worried about the next election, not long term strategy.

The total failure by any govt to create a programme for insulating the 50% of our housing stock that is over 50 years old.

Failure to ensure we have sufficient power stations. Relying on the French and the Japanese to build them (or not). Not building enough wind turbines, allowing reservoirs to be sold off.

The big one that's coming down the line, is idiotic building on agricultural land. The under-investment in food production. One small war like Ukraine can send the global price of grain & fertiliser soaring. We badly need to retain our ability to feed ourselves or we won't just be cold, but hungry too. Neither Labour not the Tories has supported farming for decades and it will bite us on the bum sooner or later.

See also fracking and nuclear.

Is this the strapline for the next Tory manifesto?!

Other examples: cutting ICU beds, not prepping for pandemic, cutting benefits to rock bottom, ultra low sick pay, cutting police, underfunding schools, cutting public health teams, cutting council funding, letting courts fall apart, low spend on flood defences...

Please will people vote ABC - Anything But Conservative.

There's virtually nothing left unruined in this country I love

Fracking and nuclear are nothing like this gas decision.

Both of those involve huge future costs. Renewables are cheaper, cleaner and safer.

There is nothing that has even stayed the same, let alone improved under the last 12 years of Tory Govt, they ve wrecked everything, immigration, crime, health, schools, roads, rail, public services... ALL worse under this lot.

Meanwhile the very wealthy have seen incomes and assets rocket.

Tory energy planning? there has been no policies, its all reactive, blame Labour seems to be all that they can come out with, even though it was Labour who first started the ball rolling with Hinkley C.

Anyone but Conservatives would have invested in more renewables more, given the green jobs potential of that sector.

The Tories never invest, just strip assets out.