Demand in Britain has risen due to freezing conditions, but traders switched from importing to exporting gas as many continental European countries run short because of the row between Russia and Ukraine. The move means Britons are likely to be denied long-awaited cuts in fuel prices. The wholesale cost of gas has increased by 26 per cent in three days, hitting 73p a therm.

Energy consultants Inenco said there was now little hope of providers dropping their charges. Spokesman Ian Parrett said: “We are not experiencing supply shortfalls in the UK but the markets are already responding with higher prices. “With future dependence on imported gas, Britain needs to make energy security a key priority or risk being held to ransom.”

Ukraine’s gas company Naftogaz said Russia’s Gazprom has cut natural gas supplies to Europe by about two-thirds. Poland, Germany and Hungry were all expected to be hit by the shortage. E.ON, which has almost 3 million gas customers in Britain and part-owns the interconnector pipeline between Britain and the continent, said the pipeline had turned from being a net importer to a net exporter of gas due to the shortages in Europe.

• In the UK our gas storage capacity is woefully inadequate, currently allowing us to provide for only 15-20 days. By comparison, France’s capability is 122 days and Germany’s is 99 days.
• The current spat between Russia and the Ukraine over gas supplies should raise alarm bells in the UK. Although we import minimal gas supplies from Russia (2-3%), dependency on imports is likely to grow and our own reserves die out.
• The ongoing Ukraine Russian issue with regards to the exportation of gas to the European market has moved ahead this evening with traders pushing up the price of UK gas as a means of filling the growing shortage across Europe. This will mean that UK energy providers will need to pay more for their gas in the wholesale market and effectively kill stone dead any chance of reductions in UK gas bills in the short to medium term.

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