In 2005 and 2006, information was prepared on understanding the UK’s gas supply:
This clarified issues relating to gas contracts, back up fuels and managing reduced demand, fuel switching (including help with environmental permits) and contingency arrangements for industrial users.
As part of the Energy review 2006: 'The energy challenge', the DTI looked at the security of our gas supplies. It concluded we needed to simplify the planning process for gas supply infrastructure projects and improve our security of gas supply arrangements.
The Energy white paper 2007: ‘Meeting the energy challenge’ announced DTI's intention to:
- encourage energy efficiency
- improve information arrangements and industry engagement through the new annual ‘Energy markets outlook’ (EMO) report
- promote open and competitive markets internationally
- improve the planning and licensing regime for gas infrastructure projects
- improve emergency planning arrangements
Progress has been made in implementing the measures set out in the 2007 white paper. The EMO report was published in 2007 and 2008, with the 2009 version scheduled for publication later this year, and the Energy Act 2008 and Planning Act 2008 reform the planning and consents regime for infrastructure both on- and offshore.
In Europe, the third package of EU internal market legislation covers data transparency on gas infrastructure capacities, flows, storage levels and access rights. This was agreed in June 2008 and will be implemented formally in 2010. The revised 2004 EU Gas Security of Supply Directive aims to improve emergency planning arrangements across EU member states.
Fuel switching
DECC is keen to ensure large users of gas can help reduce overall demand when prices are high by switching to alternative fuels. DECC is, of course, considering the environmental impacts of this very carefully.
In many cases, companies are already allowed to ‘switch’ away from natural gas for a limited period, under the terms of their environmental permits.
Companies should have already requested permit changes to allow them to switch. Those that have not and are interested in doing so, should contact their local office of the authority issuing their permit. This is typically the Environment Agency, Scottish Environment Protection Agency or the Northern Ireland Environment Agency, but it may be the local authority.
Here is a note on applying to the Environment Agency, including a summary of the process and criteria, and the role of permits: