<p>High prices are undermining the competitiveness of energy intensive industries, forcing some businesses to close altogether, the lobby group said in a statement. EIUG's comments come in response to proposals set to be unveiled by trade secretary Alistair Darling that should loosen planning rules, making new gas storage facilities easier to build.<br /><br />Britain came perilously close to running out of gas in March this year. Without reforms, we face greater risks during the winter ahead. <br /><br />EIUG welcomes news of government proposals to boost gas storage – and its commitment to addressing long term supply issues through the Energy Review – but notes that action arising from these initiatives, though welcome, will not arrive soon enough to reduce the threat to industrial supplies this winter, the statement reads.<br /><br />EIUG has identified five areas where action needs to be taken 'well before the coming winter': <br /><br />- Improve the use of import infrastructure (to ensure existing capacity is fully utilized) <br /><br />- Improve the use of gas storage (ensuring storage is priced at a cost-reflective level) <br /><br />- Implement common commercial terms (ensuring equitable terms with respect to European industry) <br /><br />- Improve access to market information (to improve market efficiency) <br /><br />- Increase demand side response (compensating users for reducing demand when supplies are tight).</p>
