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Glass Industry

Answer

Government policy is not to intervene in the energy market except in extreme circumstances, such as a threat to safety. We take the issue of security of energy supplies, and rising energy prices, very seriously, and are leaving no stone unturned in finding ways to mitigate the impact on customers.The Department has been working with the Energy Intensive Users Group, of which British Glass is a member, and Ofgem through the Gas Prices Working Group (GPWG) to develop ideas for improving the operation of the wholesale gas market and ways to mitigate the effects of high wholesale prices. The GPWG has agreed an Action List of short to medium term measures, including maximising UK gas supplies, encouraging demand side response and pursuing energy market liberalisation in the EU.In particular, the Department has worked hard to smooth the regulatory path for the construction of major new pipelines from Norway and the Netherlands, as well as two further gas import terminals in Pembrokeshire, all of which will ease the supply situation. Ofgem's Demand Side Working Group is working closely with industry to ensure that any necessary demand-side response is delivered in an efficient, flexible and responsive way. Also, the Government has put a lot of effort into pressing for full liberalisation within the EU, including at the successful Energy Council on 1 December, which I chaired, and this remains one of our key energy objectives. More recently, I have held meetings with the operators of North Sea gas fields, companies using the Bacton-Zeebrugge interconnector and the Isle of Grain gas import terminal to impress on them personally the importance I attach to the facilities operating effectively this winter.

Secondary information

Type

Written question

Reference

38493; 440 c2781-2W

Session

2005-06

Subjects

Energy supply Glass Manufacturing industries Natural gas Prices

Link

View this Written question on www.publications.parliament.uk