Gas industry figures defend chief executive

Figures in the gas industry have leapt to the defence of the Energy and Utilities Alliance chief executive, following his comments about the flexibility and affordability of gas.

Writing for Utility Week, Mike Foster argued that the gas industry is “charting a viable way forward to meet the energy trilemma” which “doesn’t fit the out-dated narrative or fundamentalist view of our detractors”.

Foster added that gas can be stored cheaply for when the demand is there and it is relatively cheap too.

“Gas is flexible as it can be stored cheaply for when demand is there. This benefit proved its value last year when the ‘Beast from the East’ hit,” he wrote.

“On 1 March [2018] local gas demand was 214GW; the day before, between 5am and 8am, consumption increased by 116GW. To put this number into perspective, peak electricity supply over the 2017/18 heating season was just 53GW with the highest 5am to 8am being a paltry 16GW. Peak energy demand should drive policy not obsessive devotion to unsuitable technologies.

“So, when the all-renewable electric zealots talk down gas in favour of electricity, one word is all that is needed (with added sarcasm for effect), ‘really?’.

“I find it amusing when I hear energy supplier CEOs suggesting gas has a limited future. To paraphrase a well-known put down, ‘what was it about supplying electricity at 15p per kWh, compared to gas at 4p that first attracted you to an all-electric future?’”

In response to his comments, the chief executive of UKLPG, which represents the liquefied petroleum gas (LPG) industry in the UK, George Webb says 16 per cent of British households plus thousands of businesses are based off the gas grid, for whom access to a variety of heating fuels such as LPG is key.

“The age, style and fabric of these homes makes them hard to heat, and difficult and expensive to treat,” says Webb.

“Constructing blanket policies or hunting for silver bullets is not going to enable the effective decarbonisation of homes in rural areas, but supporting a mix of technologies will help homeowners to decarbonise in an affordable way.

“For many off-grid properties electrification is neither practical, affordable or convenient, therefore it is vital that the UK and devolved governments recognise this significant factor when shaping future heat policy,” added Webb.

Terry Noble, a consultant in the energy and utilities practice at Odgers Interim told Utility Week he believes that the Energy and Utilities Alliance’s position on this matter is “justified”.

“There will always be a place for gas as a highly versatile and accessible source of energy,” said Noble.

“However, whilst gas can be readily utilised, enabling suppliers to switch seamlessly from mass storage to meeting peak demand, the energy market is shifting and renewable energy is now a viable contender. Infrastructure costs are reducing and technology is continuously improving in the renewables space. The advent of battery storage that can store renewable energy is a matter of ‘when’ not ‘if’. There is also a strong appetite for renewable energy amongst consumers.”

But the Renewable Energy Association’s policy and external affairs director, James Court, said Foster appears to be “kicking at a strawman who does not exist”.

“The ‘electric everything’ lobby has not been a thing for the last few years,” he told Utility Week. “Some of his comments around the trilemma are fine, but gas is not zero carbon and will need to be phased out both in power and in heat.

“The replacements for gas in terms of power are a lot more obvious. The real problem with heat is not a single person can go to BEIS [the Department for Business Energy and Industrial Strategy] and say here is a plan on how you can decarbonise the gas grid by 2050.”