The Executive Secretary said energy security was an “absolute priority” as he was preparing to meet with industry representatives amid concerns over rising wholesale gas prices.
Kwasi Kwarteng is currently in talks with CEOs of energy suppliers and operators to discuss the extent of the impact of rising prices.
This rise has been attributed to high global demand, maintenance issues, and low solar and wind energy output.
Ofgem, a former regulator chief, warned that Britain could face high energy prices for the rest of the year.
Former CEO of Ofgem, Dermot Nolan, said the increase was the result of inventory depletion following the cold winter of last year, reduced supply from Russia, and increased demand for liquefied natural gas from the Far East. Stated.
He told BBC Radio 4 today Program: “I don’t know what can be done in a very short period of time. The UK has a relatively diverse range of gas sources, so I think the lights will stay on.
“But in my view, high prices for gas and electricity are likely to continue for the next three to four months.
“It’s very difficult to know what the government can do directly in this regard.”
Meanwhile, the government is being called upon to intervene to protect the food supply chain from meat producers after soaring gas prices have reduced the supply of carbon dioxide (CO2) to the industry. Gas is essential in the manufacture and transportation of a variety of products such as meat, bread, beer and soft drinks.
Two large fertilizer plants in Teesside and Cheshire that produce CO2 as a by-product have been closed as a result of a sudden surge in wholesale gas prices.
Price increases could hurt food supply.
The British Meat Processors Association (BMPA) said a company’s carbon dioxide inventory could run out within two weeks. In other words, we need to “stop breeding animals and shut down production lines.”
A food retailer boss told The Times that it was a moment of national emergency and that prominent slaughterhouse customers had only four days’ worth of gas left. Gas is used to stun animals before slaughter.
Steverow, chief of M & S, said: “Meat and poultry suppliers are calling for urgent action and intervention by the government to ensure continuity of supply.”
Saturday morning, Mr. Quarten tweeted. “Today, we will talk to the UK’s largest energy supplier and CEO of the operator to discuss the global gas situation.
“The UK has a wide variety of gas sources and has enough capacity to meet demand.
“No supply emergencies are expected this winter.
“Energy security is an absolute priority. We work closely with ofgem and gas operators to monitor supply and demand.”
Kwarteng is understood to be meeting with senior executives from Ofgem, Centrica, National Grid, Energy UK, Octopus, Ovo, SSE, EDF, ScottishPower, Shell Energy, E.ON, Bulb and SGN on Saturday. ..
Nick Allen, CEO of the British Meat Processors Association, said CO2 is essential for both humane slaughter of livestock and extended shelf life of products.
He said today Program: “Packing side that shortens the shelf life of products on the shelves when there is no CO2 supply and you are really struggling with transportation problems.
“This was a big shock. It happened very quickly. I think everyone in the industry is indignant, but these fertilizer plants were closed without any warning, so for the downstream food supply chain. It can suddenly rob you of something very important.
“We really need the government to intervene now and actually do something.”
A government spokesperson said: “The UK benefits from access to a wide variety of gas sources to ensure that homes, businesses and heavy industries have the energy they need at the right price.
“We are closely monitoring this situation and are in regular contact with food and agricultural organizations and industries to control the current situation.”
Additional reporting by the Press Association.