The price of gas has rocketed in recent weeks, putting several energy suppliers out of business and prompting warnings of food shortages in UK supermarkets.
Wholesale gas prices have soared by 250% since the beginning of the year, including a 70% rise since August, according to the Oil & Gas UK trade body.
So why is this happening and how is it disrupting the country’s food supplies?
Image: Wholesale gas prices have soared by 250% since January
How reliant is the UK on gas?
The gas market is crucial to the UK’s energy supply because of its role in heating, industry and power generation.
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More than 22 million households are connected to the gas grid, the UK government says.
In 2020, 38% of the country’s gas demand was used for domestic heating, 29% for electricity generation and 11% for industrial and commercial use.
So why have wholesale gas prices increased?
One of the main reasons is an “uptick” in global gas demand as economies reopen after COVID lockdowns, according to the government.
It says this, combined with a cold winter in 2020-21 which prompted higher demand, has led to a “much tighter gas market with less spare capacity”.
Speaking on a visit to New York, Prime Minister Boris Johnson admitted there were “a lot of short-term problems” caused by gas supply shortages, but he added: “This is really a function of the world economy waking up after COVID.
“This will get better as the market starts to sort itself out, as the world economy gets back on its feet.”
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Energy boss: It’s ‘crunch time’ for many small providers
Russia accused of acting to push up gas prices
The European Commission has been asked to investigate the role of Russia’s state-backed gas company Gazprom in soaring gas prices across the continent.
A group of 40 MEPs has said the company’s behaviour had made them suspect market manipulation to push up gas prices.
In a letter, the MEPs said they were suspicious of Gazprom’s “effort to pressure” Europe to agree a fast launch to its Nord Stream 2 gas pipeline, which still has to clear regulatory hurdles that could take months to complete.
Image: Workers at the construction site of the Nord Stream 2 gas pipeline
The MEPs cited incidents including recent shut-ins of some of Gazprom’s production and said the company had refused to book gas transport capacities through existing pipelines.
“All these factors allow to suspect that the record natural gas price surge in Europe in the recent weeks may be a direct result of Gazprom’s deliberate market manipulation,” the letter said.
In response to the accusations, Gazprom said it supplied its customers with gas in full compliance with existing contracts.
The European Commission said it had received the letter and would reply in due course.
UK’s wind power hit by calmer weather
Calm weather over the past two weeks has cut output from the UK’s 11,000 wind turbines, which account for more than 20% of electricity generation, according to Bloomberg.
It has meant that demand for natural gas to produce electricity has increased and Britain has turned to coal-burning stations to fill the energy shortfall.
Image: Calm weather has reduced the UK’s wind power in recent weeks
Are there other reasons behind the gas price rise?
Other factors include high demand in Asia for liquified natural gas which has meant less than expected has reached Europe.
In the UK, several gas platforms in the North Sea have also closed for maintenance that was paused during the pandemic.
Meanwhile, cables that import electricity from France were damaged last week following a fire.
The National Grid said its site at Sellindge in Kent was evacuated following the blaze on Wednesday morning.
The fire and planned maintenance means it will be offline until 25 September and only half of its two gigawatt capacity available until March 2022.
Image: A fire broke out at the National Grid site in Sellindge, Kent
Why have food suppliers been hit?
The steep rise in gas prices has caused two large fertiliser plants in Teesside and Cheshire which produce carbon dioxide (CO2) as a by-product to shut, hitting supply to the food industry.
CO2 is used in the humane slaughter of livestock and to extend the shelf-life of products. It is also vital to cooling systems for refrigeration purposes, industry leaders have said.
Producers have warned that supplies of meat, poultry and fizzy drinks could all be hit due to the shortage of CO2.
Nick Allen, chief executive of the British Meat Processors Association, has said the country could be two weeks away from British meat disappearing from supermarket shelves.
Image: An empty freezer section at a Sainsbury’s supermarket in Durham
He told Sky News: “The meat industry, in particular the pig and poultry industry, use CO2 for humane slaughter. Eighty per cent of pigs and poultry are slaughtered using that process.
“CO2 is a by-product of fertiliser. Those plants closed, and they account for about 60% of the CO2 produced in this country. They closed at very short notice with no warning. It really hit us cold.”
Mr Allen said meat manufacturers have said they have between five and 15 days’ supply left.
He added: “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.”
Image: CO2 is used in the humane slaughter of livestock
“I’d say the last two years people are just – they just don’t care anymore, they are using knives and doing all sorts.”
PC Maguire, 28, speaks with the authority of experience: experience that comes from working in Greater Manchester’s most high-crime areas.
“I remember when I was a teenager,” she says, “you’d never really hear of people carrying a knife or anything. But now it’s the normal thing to do.”
“It’s mad,” she adds.
Image: PC Maguire on patrol – her face is blurred because she also does undercover work for the unit
PC Maguire is part of Operation Venture, an elite policing unit within Greater Manchester Police set up to tackle serious violence and knife crime.
Over the past two months, we’ve been given exclusive access to watch them work.
Moped chase
We’re on a Friday afternoon vehicle patrol in south Manchester with another member of the Venture team, Sgt Mohammed Waqas, when his radio, and that of fellow officer PC Hodge, who’s driving, starts pinging.
Their plain clothes team has spotted two youths in balaclavas, on a moped, weaving in and out of traffic.
“We suspect they are involved in some sort of knife-point robberies,” Sgt Waqas says.
The moped has also had its registration plates pulled off – officers suspect it’s been stolen.
The team starts searching the streets and is flagged down by a passing driver who says he’s just had to swerve to avoid hitting a moped.
Image: One of the GMP officers during the hunt for the moped which was suspected to have been stolen
“They’re little idiots, up there!” the driver says, visibly angry. “There are kids around.
“I swear to god I felt like f*****g chasing them down, and kicking them up the arse.”
Meanwhile, the unit’s covert officers are waiting where the moped has been previously spotted.
When it returns, a short while later, there are three youths onboard.
The team detain one, a 16-year-old who is known to them, but the two other youths get away.
Image: The youths on the moped filming themselves escaping from police – suspects filming escapes and incidents and then posting it online has grown increasingly common
Sgt Waqas and PC Hodge take up the chase, following the moped at speed as it runs red lights.
Incredibly, we see one of the moped riders filming it all on their mobile phone.
Later, the officers tell us: “They’ll probably post it online.”
But right now, they are focused on trying to catch them, which, in rush hour traffic, proves impossible.
They lose them – “yeah, total loss”, Sgt Waqas reports via his radio to the comms operator.
“Just to log as well,” he adds, “two males, white males, both got balaclavas on.”
“One of them has possibly got something in his jacket. Can’t tell what it is, just the way that he was holding himself.”
It’s extremely frustrating for the team.
Image: The elite unit has taken 250 knives off of Manchester’s streets – an officer holds one of the knives recovered that he describes as a ‘rambo’ blade
A baby buggy, a knife and £50,000 cash
A few hours later, during a patrol in Salford, we see the sorts of weapons they are up against.
We’re with PC Maguire again, on vehicle patrol, when a police camera flags a car with links to suspected drug supply.
Along with another of the unit’s patrol cars, PC Maguire works to get into a formation to box in the suspect’s vehicle.
“XR2, show me as Car two,” PC Maguire tells a radio operator, having quickly made ground to get the vehicle in her sights.
“You want to get a stop on, before they have an opportunity to get away,” she explains.
But, after a brief pursuit through the dark streets, the car they are following pulls over of its own accord.
The driver, who’s in his 20s, is searched – as is his vehicle.
Inside, along with baby buggies and car seats, officers find a knife in the glovebox and a shoebox full of cash.
Image: One of the knives officers recovered during the elite unit’s work
Image: The car pulled over by the officers was full of baby equipment, as well as a knife and cash
Image: The cash recovered by officers from car – thought to be around £50,000
After brief questioning on site, the man tells officers that he’s been staying at a house nearby and admits there’s another weapon in there.
A few minutes later, PC Ben Cartledge – another Operation Venture officer – comes out holding what looks like a huge knife.
“It’s a machete,” he says, “it was in the bedroom.”
It’s extremely heavy and looks terrifying.
Image: The machete recovered by officers in Greater Manchester Police’s Operation Venture unit from the bedroom of a suspect they pulled over
Image: One of Operation Venture’s officers minutes before they pull over a car with £50,000 cash and a knife
“I’m not going to lie to you, mate, it’s for protection only,” the arrested man says, when PC Cartledge arrests him on a further offence of having an offensive weapon in a private place.
It’s a line officers have heard before.
“There’s that social media side of it,” a senior officers says.
“Sometimes they’ll film themselves doing the robbery and sharing it around, and that becomes the normality.
“So then people will sometimes carry weapons to protect themselves.”
The unit uses a combination of proactive stop and search, intelligence-led policing and undercover tactics.
It’s why we can name officers but sometimes not show faces.
The government will give ‘recognition’ payments to Post Office Capture victims before they receive full compensation.
Former sub-postmasters and their families who are entitled to redress have been told the initial amount, which is yet to be finalised, could be £10,000.
Capture was a faulty computer system used by sub postmasters in the 1990s – before the Horizon scandal.
A report last year found the software is likely to have caused errors in accounting.
A redress scheme is currently being set up for those affected and could possibly be introduced by the end of the summer.
Steve Marston, a Capture user who was convicted of stealing from his Post Office in 1996, describes “quite a lot of progress” at a government meeting but raised concerns over pace.
He told Sky News: “I’m more than happy that the compensation scheme is going to be put in place as quickly as possible.
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“None of us are guaranteed how long we’re going to be here. We just want people to see recognition as soon as possible.”
Image: Steve Marston with his wife Jan
Ken Tooby’s late wife June was a Capture victim. Ken is seriously ill in hospital so his family has sent a plea to the government to “sort this Capture business asap”.
June Tooby represented herself in court in 2003 and challenged the Post Office over its “faulty” software system.
The evidence she compiled led to the Kroll investigation into Capture concluding there was a “reasonable likelihood” the software caused accounting errors.
Another victim, who wanted to remain anonymous, told Sky News he was “frustrated” at the slow progress of redress, describing it as “like pulling teeth”.
He also raised concerns over interim payments potentially being “too low”, claiming the government may be trying to “keep people sweet”.
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3:19
PO miscarriages of justice cases ‘double’
The Criminal Cases Review Commission (CCRC), meanwhile, is currently investigating 28 convictions and it’s hoped decisions will be made over whether to refer cases to the Court of Appeal by the end of the year.
Neil Hudgell, lawyer for Capture victims, said there was a “positive dialogue” at the latest meeting between government officials and families.
“The real frustration is the time it takes because of the processes that are involved,” he said. “I can see why it would take as long as it has.
“But [victims] just want peace and to see the end of it… There’s a real acute need to bring matters to a close.”
On timescales, he said there were “no guarantees” but a “guesstimate” was that redress will start “to flow… in the second half of the year”.
Mr Hudgell said he would be “disappointed” if conviction cases have not been progressed by the CCRC by this autumn.
“I don’t under emphasise the amount of work they’ve got – it involves multiple cases… I think they’ve got enough evidence now to start to formulate a decision,” he said.
A Department for Business and Trade spokesperson said: “Postmasters have already endured immeasurable suffering, and we continue to listen to those who have been sharing their stories on the Capture system.
“Ensuring postmasters are treated with dignity and respect is our absolute priority.
“Officials met with postmasters [on Wednesday] as part of our commitment to develop an effective and fair redress process for those affected by Capture.
“We will continue to update on the development of the redress mechanism as it progresses.”
It was a welcome party of sorts, and it was assembled near arrivals at Heathrow’s Terminal 5.
A few people clutched flowers, others brought presents, while everyone carried a sense of relief.
Two children from Gaza had been given permission to enter Britain for specialist medical care and the pair would arrive on the evening flight from Cairo.
It was a significant moment – the first time UK visas had been granted to children from this war-ravaged enclave – and the product of months of struggle by a small group of British volunteers.
Image: Ghena Abed, five, needs urgent treatment to save the vision in her left eye
As those in attendance offered up a cheer, a five-year-old called Ghena Abed emerged shyly from behind the security gates. With fluid pressing on her optic nerve, she needs urgent treatment to save the vision in her left eye.
Also in this party was a 12-year-old girl called Rama Qudiah. She is weak and malnourished and suffers from incontinence. Medics think she requires an operation on her bowel.
Image: Medics think Rama Qudiah, 12, needs a bowel operation
Her mother, Rana, told us their arrival in Britian “is just a like a dream”.
Her daughter has certainly been fortunate. A small number of children from Gaza have benefited from medical evacuations, with the majority receiving care in countries in the Middle East, Europe, as well as the United States.
Image: Rama’s mother, Rana
In March, the Israelis signed a deal with Jordan which could allow 2,000 children to leave the enclave for treatment of war injuries and conditions like cancer. However, just 29 were allowed to go at first instance.
The process has not been easy
Until now, not a single child from Gaza has entered the UK for medical care since the start of the current conflict, and the process has not been an easy one for the volunteers at Project Pure Hope.
They told Sky News it has taken 17 months to arrange temporary visas for Ghena and Rama.
Image: Dr Farzana Rahman from Project Pure Hope
“A lot of us are health care workers and I think it’s in our DNA that when we see people who are suffering, particularly children, we want to try and do something and that’s what motivated us,” says Dr Farzana Rahman from Project Pure Hope.
When asked why she thinks it has taken so much time to secure their visas, Dr Rahman said: “I don’t know.”
Group argues it has no time to lose to help other children
But it is clear the arrival of children from Gaza is an issue of sensitivity. The British volunteers told us on a number of occasions that all costs would be met by private sources. The children will return to Gaza when the treatment is completed.
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Project Pure Hope is not finished, however – group members have drawn up a list of other children they can help, and argue they have no time to lose.
“One of the hardest parts of trying to make progress in this area is that delays cost lives. A number of children have died who we haven’t been able to help and this is an urgent situation and I think for all of us that’s the hardest part,” says Dr Rahman.