UK's energy regulator foresees threat to gas supplies

UK's energy regulator Ofgem foresees a looming threat to the country's gas supplies. It has warned t

A record cold spell in Europe, and declining gas reserves, are creating anxiety among many. Britain's gas production is down 40 per cent since 2000, and it is expected to decline further.

An increase in the number of gas-fired plants in Britain is also increasing fears of supply shortages.

As the country's gas production falls, Alistair Buchanan, chief executive of Ofgem, said that gas supplies from Russia and the Caspian region may also not be available to meet UK's demand.

He fears that Britain's competitive market is not effectively structured to guarantee security of supply. Big manufacturers and users are also worried about the security of UK's energy supply.

Ofgem's analysis of the outlook for energy security titled Project Discovery portrays the risk to Britain's gas supplies in severe winter.