CRISIS? WATT CRISIS?
EMERGENCY TALKS... YET MINISTER PLAYS DOWN ENERGY THREAT
A CABINET minister has insisted there’s no need to panic as an energy crisis sends gas and electricity bills soaring – and threatens supplies of festive food, drink and even turkeys this Christmas.
Rocketing gas prices have led to a shutdown of plants that create CO2 – carbon dioxide – used by the food industry to stun animals at abattoirs, keep food chilled, prolong shelf life and make drinks fizzy.
Despite planned emergency talks today between business secretary Kwasi Kwarteng and industry leaders, cabinet minister Alok Sharma insisted: ‘There’s no immediate concern in terms of supply – we don’t see any risks going into winter. But of course we are not complacent about
this.’ Told the mixed messaging felt like Dad’s Army character Cpl Jones, shouting ‘Don’t panic! Don’t panic!’ Cabinet Office minister Mr Sharma replied: ‘It certainly isn’t that. I mean, I’m a dad, but just to be clear it’s nothing to do with Dad’s Army.’
The Europe-wide gas shortage has put wholesale prices up, forcing some smaller suppliers out of business. It has also led to record electricity prices as the UK uses gas-fired turbine plants to generate nearly half its electricity.
And US-owned CF Industries has shut two plants, in Teesside and Cheshire, which use gas to make fertiliser then sell its CO2 by-product to the food industry.
The British Meat Processors’ Association warned it had just two weeks of capacity left. Chief executive Nick Allen said: ‘Everyone is outraged fertiliser plants can shut down without warning and take something so essential to the supply chain off-stream just like that.’
Grocery delivery firm Ocado warned customers there would be a ‘limited stock’ of frozen products. Some supermarkets have already put Christmas products on shelves, reportedly to help calm fears over festive supplies.
The issue adds pressure to the supply chain hit by a shortage of HGV drivers due to the pandemic and Brexit changes.
Bernard Matthews poultry owner Ranjit Singh Boparan said: ‘The CO2 issue puts us at breaking point. The supply of turkeys this Christmas was already compromised as I need to find 1,000 extra workers. Now, with no CO2 supply, Christmas will be cancelled.’
Last night, after talks with the energy regulator, Mr Kwarteng tweeted: ‘If a supplier fails, Ofgem will ensure customers’ gas and electricity supply will continue uninterrupted.’
He said he had also met with the chief executive of CF Industries, responsible for 60 per cent of Britain’s industrial CO2, adding: ‘We explored possible ways to secure vital supplies.’