Lack of incentives for gas storage threatens jobs and investment says BPF President

The President of the British Plastics Federation has said that the lack of Government incentives for the provision of gas storage in the UK “threatens jobs and investment plans” in the plastics industry.

Mike Boswell made the comments after the Federation expressed its concerns that the Government has decided against introducing subsidies to build new UK gas storage facilities. 

“The Plastics Industry needs affordable and secure energy supplies. With over 50 percent of our gas supplies imported it is vital we have a lot more gas storage, which takes five years to build.  The Government not incentivising the building of this storage threatens jobs and investment plans in our industry and brings the risk of black-outs closer,” Boswell said.

In June, the UK’s energy regulator, OFGEM, warned the risk of blackouts has doubled in less than a year because not enough power stations were being built to replace old coal and gas plants. Earlier in the year, in March, freezing weather saw wholesales gas prices triple in a week due to the resultant closure of a gas import pipeline.

In January the BPF wrote to DECC Secretary of State, Ed Davey MP, and proposed three key actions from Government in order to ensure the long-term provision of gas to UK industry and alleviate the threat of blackouts.