Displaying items by tag: gas crisis

Rising gas prices caused fertiliser factories to close on 20 September, cutting 60% of the supply of carbon dioxide (CO2) to the food and drinks industry. There were warnings of supermarket shortages, because CO2 extends the shelf life of packaged fresh foods and keeps transported food fresh as dry ice. There were also concerns that the UK may have to close its six advanced gas-cooled nuclear reactors which use CO2 . Big meat suppliers were prioritising how they use CO2 as they had just three days' supply, while supermarkets had ‘limited stock’ of frozen items. On 22 September the Government promised to give tens of millions of pounds to restart production of CO2 at a fertiliser factory for three weeks ‘whilst the market adapts to global prices’. There will be a cap to the overall cost. The Food and Drink Federation said shortages may be felt through to the end of the year.

Avro Energy and Green Supplier collapsed on 22 September, and the sector's regulator warned ‘well above’ hundreds of thousands of customers will have to be moved to new suppliers whose tariff may be more expensive. Avro Energy has 580,000 customers, Green Supplier 250,000. Customers will still receive energy while a new supplier is appointed. They are the latest providers to go bust following a sharp rise in wholesale gas prices. Ofgem warned the price rise was ‘something not seen before’ and more firms would fold. A six-fold rise in wholesale gas prices since last year meant several domestic energy suppliers had hit financial trouble. The Joseph Rowntree Foundation charity warned that millions of low-income households will face a squeeze on their finances from October, when energy companies will be allowed to lift the maximum amount they charge for gas and electricity by as much as 12%. Also from next month, Universal Credit claimants will lose £20 a week.