Why gas prices have soared and left UK facing prospect of food shortages
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?
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.
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.
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.
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.
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.
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.”
CO2 is used in the humane slaughter of livestock
Ranjit Singh Boparan, the owner of Bernard Matthews and 2 Sisters Food Group, said supply issues, as well as a shortage of workers, will affect the supply of turkeys for Christmas.
He said the supply of turkeys was “already compromised” as he needed to find an extra 1,000 workers to process supplies.
“Now with no CO2 supply, Christmas will be cancelled,” he added.
“The CO2 issue is a massive body blow and puts us at breaking point, it really does – that’s poultry, beef, pork, as well as the wider food industry.”
Gatwick Airport’s South Terminal has been heavily disrupted after a “suspected prohibited item” was discovered in luggage, leaving passengers in limbo.
Some passengers were reportedly left on planes that weren’t taking off, while others were stranded in the airport for hours after Gatwick made the announcement this morning.
Sussex Police said the explosive ordnance disposal team was being sent in “as a precaution” and a security cordon was put in place.
It now says the incident has been resolved and cleared – but warned there were still “some delays and cancellations”.
Gatwick Airport latest updates
The airport, which is the UK’s second busiest, was set to see off some 316 departing flights today, according to aviation analytics website Cirium.
But what are the rights of passengers if their flights are delayed or cancelled?
Your rights during delays
Your flight is covered by UK law if it departs from a UK airport, arrives at a UK airport on a UK or EU airline, or arrives at an EU airport on a UK airline.
When it comes to significant delays, UK law says airlines must provide you with care and assistance.
Significant delays are classed as:
- More than two hours for short-haul flights of under 1,500km (932 miles)
- More than three hours for medium-haul flights of 1,500km-3,500km (932-2,175 miles)
- More than four hours for long-haul flights of over 3,500km
Here’s what the law says the airline must provide you with until it is able to fly you to your destination:
- A reasonable amount of food and drink
- A means for you to communicate (often by refunding the cost of your calls)
- Accommodation, if you are re-routed the next day
- Transport to and from the accommodation (or your home, if you are able to return there)
It says this must be provided for you for however long delays last, irrespective of what has caused them.
Passengers facing delays have been handed blankets by staff at the airport
Airlines may not always be able to arrange care and assistance for all passengers during major disruptions directly, but the UK Civil Aviation Authority (CAA) says you can organise the things listed for yourself and then claim the cost back from your airline later if you keep every receipt and do not spend more than is deemed reasonable.
In other words, don’t splash out on things like alcohol and luxury hotels during your wait and expect to claim your money back later.
What are your rights if your flight is cancelled?
If your flight is cancelled, the airline must either give you a refund or book you on an alternative flight.
You can get your money back for all parts of a ticket you haven’t used, the CAA says.
If you have booked a return flight and the outbound leg is cancelled, for example, you can get the full cost of the return ticket back from your airline.
“If you are a transfer passenger and you have already completed part of your journey, you are also entitled to a flight back to your original departure point when your connecting flight is cancelled and you decide not to continue your journey,” it adds.
If you still want to travel, your airline must find you an alternative flight – whether it is the next available one, or a flight at an alternative, later date.
If another airline is flying significantly sooner than yours is able to offer, you may have the right to be booked onto a rival airline’s flight, but this has to be negotiated with the company.
On last-minute cancellations, Naveen Dittakavi, founder and chief executive of Next Vacay, said: “If you’re already at the airport once the flight is cancelled, the best thing you can do is stay calm – you are protected against many things that might go wrong.
“Try calling the airline helpline rather than waiting to speak directly with the airport staff. The helpline is often more flexible and may provide you with an e-credit or voucher, or flexibility to change your travel dates quickly.”
Can you get compensation?
In some cases, airlines may have to provide compensation if your flight arrives at its destination more than three hours late – but that is only if the delay is deemed to be your airline’s fault.
Disruptions caused by things deemed “extraordinary circumstances” are not eligible for compensation, according to the CAA.
Downing Street has indicated Israeli Prime Minister Benjamin Netanyahu would be arrested if he arrived on British soil following an international arrest warrant being issued for him.
On Thursday, the International Criminal Court (ICC) issued arrest warrants for Netanyahu and former Israeli defence secretary Yoav Gallant for alleged war crimes and crimes against humanity related to the war in Gaza.
The UK government was reluctant to commit to saying Netanyahu would be arrested if he came to the UK but Sir Keir Starmer’s spokesman said the government would “fulfil its legal obligations” in relation to the arrest warrant.
“The UK will always comply with its legal obligations as set out by domestic law, and indeed international law,” he said.
He added the domestic process linked to ICC arrest warrants has never been used to date by the UK because the country has never been visited by anyone wanted by the international court.
Earlier on Friday, Home Secretary Yvette Cooper said it “wouldn’t be appropriate for me to comment” on the processes involved as the ICC is independent, although the UK is a member.
She told Sky News: “We’ve always respected the importance of international law, but in the majority of the cases that they pursue, they don’t become part of the British legal process.
“What I can say is that obviously, the UK government’s position remains that we believe the focus should be on getting a ceasefire in Gaza.”
However, Emily Thornberry, Labour chair of the foreign affairs committee in parliament, told Sky News: “If Netanyahu comes to Britain, our obligation under the Rome Convention would be to arrest him under the warrant from the ICC.
“Not really a question of should, we are required to because we are members of the ICC.”
After winning July’s election the government said it would not oppose the ICC’s right to issue the warrants.
Netanyahu and Gallant (right) have arrest warrants against them. File pic: Reuters
Ireland, France and Italy have signalled they would arrest Netanyahu if he came to their countries.
Asked if police would arrest the Israeli leader in Ireland, Irish Taoiseach Simon Harris said: “Yes, absolutely. We support international courts and we apply their warrants.”
Germany said it would make a decision if Netanyahu came to Germany but said it is one of the “biggest supporters of the ICC”, partly as a result of history.
A German government spokesman said: “At the same time, it is a consequence of German history that we share unique relations and a great responsibility with Israel.”
An ICC arrest warrant was also issued for Hamas leader Mohammed Diab Ibrahim al Masri, the mastermind behind the 7 October attacks in Israel, for alleged war crimes and crimes against humanity.
Israel claims Al Masri was killed earlier this year but the ICC said that has not been confirmed, so it was issuing the arrest warrant.
Netanyahu’s office said the warrants against him and Gallant were “antisemitic” and said Israel “rejects with disgust the absurd and false actions”.
Neither Israel nor the US are members of the ICC. Israel has rejected the court’s jurisdiction and denies committing war crimes in Gaza.
Read more:
What satellite images tell us about North Gaza
Hamas ready for Gaza ceasefire ‘immediately’
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Why have arrest warrants been issued?
US President Joe Biden described the warrants against Israeli leaders as “outrageous”, adding: “Whatever the ICC might imply, there is no equivalence – none – between Israel and Hamas.”
Former Israeli prime minister Naftali Bennett said the warrants for Netanyahu and Gallant were a “mark of shame” for the ICC.
The Board of Deputies of British Jews said the ICC’s decision sent a “terrible message”.
Hungarian Prime Minister Viktor Orban said on Friday he would invite Netanyahu to visit Hungary and he would guarantee the arrest warrant would “not be observed”.
The ICC originally said it was seeking arrest warrants for the three men in May for the alleged crimes and on Thursday announced that it had rejected challenges by Israel and issued warrants of arrest.
In its update, the ICC said it found “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for alleged crimes.
These, the court said, include “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.
It is the first time a sitting leader of a major Western ally has been accused of war crimes and crimes against humanity by a global court of justice.
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