Gas storage failings stem from previous government decisions, says trade body
10th Mar 2026
Responding to reports that the UK’s gas storage levels have reached critically low levels, Mike Foster, CEO of EUA, has attributed the situation to decisions made by the former government.
Mr Foster highlighted discussions held in 2013 with then Energy Minister Michael Fallon regarding the planned closure of the Rough gas storage facility. At the time, consultancy Redpoint was commissioned to assess whether government support for a strategic gas reserve was justified. Although three of the four recommendations supported providing a subsidy, the government chose the only option that suggested a short-term cost saving.
Commenting on the current pressures on the UK’s gas system, Mr Foster said:
“In 2013 the government relied too heavily on a pure free-market approach, assuming higher prices would reduce demand in the event of a shortage. That approach was flawed then and is flawed now. The failure to invest has left the UK exposed, and responsibility lies with the previous administration.”
Despite the challenges, Mr Foster noted that the UK still benefits from significant North Sea gas supplies—both domestic and Norwegian—which together meet around 80% of national demand. He also acknowledged the advantages of entering spring with lower seasonal consumption and the resilience of the UK’s world‑class gas network.
“Strategic facilities like Rough provide essential insurance,” he added. “They absorb surplus gas when demand is low and release it when demand is high. Without them, the system is more vulnerable to global shocks such as the current instability in Ukraine and Iran.”
Mr Foster stressed that declining UK North Sea production makes renewed investment in storage even more important.
“To meet future clean‑power objectives and maintain energy security, the UK must expand its long‑term gas storage capacity, as many European neighbours already do,” he said. “The government should seize this opportunity to rebuild resilience and explore ways to maximise remaining North Sea resources.”
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