The gas price crisis is continuing to grow, and the spectre of food shortages is beginning to loom, according to industry experts.
Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng tried to reassure MPs in the House of Commons on Monday, September 20.
“There is absolutely no question of the lights going out or people being unable to heat their homes,” he said, and described suggestions that a three-day week could be introduced to conserve supplies as “alarmist”.
However, there is still huge disquiet about how difficult winter could be as prices rise at the same time as the government has ended the £20-a-week Universal Credit uplift.
This is why gas prices are climbing so steeply, and how it could leave supermarket shelves empty of meat within two weeks.
Why is there a gas price rise?
The wholesale price of gas has shot up since the start of 2021: it’s up 250 per cent, and up 50 per cent since August.
There are a few reasons why this is happening. One is that a cold winter last year depleted gas stocks, another that the devastation left by Hurricane Ida in the United States shut down refineries.
The reopening of economies following the coronavirus lockdowns has meant a sudden jump in demand. Supplies of gas from Russia have dropped while demand from Asia has increased, putting further strain on the gas supply.
As Britain relies on imports for two-thirds of its gas supply, those global price swings have a big effect on British prices.
What does the gas price rise mean for food supply?
The price rises have forced two big fertiliser plants in Teesside and Cheshire to shut, and these plants also produce carbon dioxide as a by-product.
CO2 is used in a lot of different processes in the food industry, from slaughtering animals to cooling fridges and keeping food fresh for longer.
Without it, the meat and poultry industries could be severely affected. Nick Allen, chief executive of the British Meat Processors Association, told Sky News that the industry has between five and 15 days of supplies left.
"Then they will have to stop. That means animals will have to stay on farms. That will cause farmers huge animal welfare problems and British pork and poultry will stay off the shelves. We're two weeks away from seeing some real impact on the shelves."
How dependent is the UK on gas?
Very. Natural gas currently accounts for a third of the electricity produced in the UK. It is burned to produce steam which turns turbines, and which is then converted into electricity.
The calm weather over the last few weeks has cut wind-generated electricity supply too, making the shortfall even more pronounced
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