§ Lord Moynihanasked Her Majesty's Government:
Following the publication of the energy review of the Performance Surveillance Unit, whether they will detail their proposed contingency plans and gas supply obligations in the event of a gas supply emergency when the United Kingdom becomes a significant gas importer, in order to cover the obligations which should be placed on market players so that they can maintain minimum level of supply and capacity in the event of a security incident; and where the costs associated with such obligations should be borne. [HL3237]
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)We are looking at all these issues. We have set up the Gas Industry Emergency Committee. Its aim is to ensure that in the event of a gas supply emergency in the UK, plans arc in place for a rapid and safe restoration of supplies to consumers. The plans, which will be reviewed and tested regularly, are developed to address emergencies whether they are caused by supply shortages or through infrastructual faults on the UK network. We will publish these plans in April.
Future patterns of gas demand and supply, including import forecasts, are being examined by DTI and Ofgem through a joint working group on security of energy supply. This was set up in July last year. The group will make its first report to Ministers and the Gas and Electricity Markets Authority shortly. Its remit is to monitor security of supply issues and assess any risks to supplies in the future.
The PIU Energy Review and the recent report of the Trade and Industry Committee on security of energy supply raise specific points about whether obligations should be placed on players in the gas market. The Government will address these questions in responding to these reports.