LONDON (Pakistan Point News / Sputnik - 28th September, 2021) Investment in renewable energy is the only long-term solution to the issue of high gas prices, Kwasi Kwarteng, the UK secretary of state for business, energy and industrial strategy, said Monday.
"The Business Secretary also spoke about the issue of high global gas prices. He reiterated the government's commitment to continue investment in renewable energy projects and getting unreliable gas off our grid as the only long-term solution to bringing down costs for consumers and strengthening Britain's energy security, whilst boosting the country's competitive advantage in green technologies," the department said in a statement following Kwarteng's meeting with business representatives.
Natural gas prices in Europe have been on the rise over the past few months, hitting a historical record of over $960 per thousand cubic meters in September, as opposed to the expected $500.
Gas remains critical to Britain's energy supply as more than 22 million households are connected to the gas grid. In 2020, 38% of the country's gas demand was used for residential heating, 29% for electricity generation and 11% for industrial and commercial use.
British energy companies are experiencing difficulties due to soaring global gas prices, and some of them have announced that they cannot fulfill their obligations to consumers. The situation threatens to further affect the country's industry and food security, as several major fertilizer producers have introduced production cuts.
The UK is currently struggling with another energy crisis as several national companies announced they were having problems with fuel supplies due to a shortage of tanker drivers, leading to panic buying of petroleum and queuing in front of gas stations in London.
