Gas Storage Levels

Richard Foord Excerpts

Monday 13th January 2025 Commons Chamber

[Richard Foord (Honiton and Sidmouth) (LD)]

In 2022, following the full-scale invasion of Ukraine, we saw a huge Government subsidy for household energy bills and an extra £15 billion per year in additional support for households. I appreciate that gas is traded globally and that the gas price moves globally, but if storage had been greater in 2022, could any of that £15 billion have been saved for taxpayers?

[Michael Shanks]

That is a really interesting question that I asked myself when I came into this role. Logically, we might assume so, but we do not empty the gas storage and then wait to refill it; we refill it constantly. That topping up will be done at whatever the price in the market at the time. The main reason why we would have used the gas in storage is that there is such demand in the system that the price is likely to be higher anyway. The hon. Gentleman makes a really important point, but I do not think that gas storage would have been the issue. I reiterate the point I made at the beginning: part of the reason why we have less gas storage than other European countries is that we have a different mix of routes to get gas in, and far more reliable supply chains for it, so we do not need to store quite as much as our European neighbours.