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Aug. 7, 2003 -- UK energy regulator Ofgem said on Wednesday it wanted gas producing companies to give more information on their operations to the market and to Transco, the operator of the national transmission network.
"Ofgem will be working with the DTI (Department for Trade and Industry) to improve the flow of information from the offshore industry to Transco and, where appropriate, to the market," Ofgem said in a statement.
The statement follows a probe into the causes of a gas shortage in June in southeast England which forced Transco, which is responsible for balancing the network, to cut supplies to interruptible customers such as hospitals and power plants.
The interruptions on June 17 and 18 were the first ever in the summer. Gas supplies are normally interrupted in the winter when demand is very high.
Ofgem said it would not launch an investigation into the case and that its report found that the interruptions were caused by a combination of offshore problems in the Bacton and Easington areas in the high-demand region of eastern England.
"There is currently no evidence to justify a formal investigation. But Ofgem will continue to closely monitor the gas market," it said.
It said it would hold talks with certain shippers to better understand their actions on June 17 and 18 as well as review the rules governing Britain's biggest gas storage site Rough, to ensure they enhance rather than hinder security of supply.
Ofgem said gas supplies have improved but that the interruptions this summer were a sign of the problems associated with Transco and the market receiving or not receiving information about outages and other offshore problems.
Some players in the market have expressed concerns shippers might have held back supplies to push up the price for gas during the shortages in June.
The shortages prompted Transco to cut customers' supplies, limited gas exports through the interconnector pipeline between Britain and Belgium and reduced gas injection into Rough in order to balance the system.
Large customers can either pay extra for firm gas supply, which cannot be interrupted, or buy cheaper gas which can be cut when demand is strong.
About 20 per cent of gas supplies are interruptible.
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