The Department for Business, Energy and Industrial Strategy (BEIS) is to launch an inquiry into the UK's gas storage strategy.

The BEIS Committee will examine issues around UK gas security and gas storage, the government’s approach to diversity of supply, and what action the government is taking to ensure the supply system is robust and secure.

The evidence session is likely to explore questions concerning the decision to close the rough gas storage facility and how the supply and availability of the UK’s gas supply is evaluated. The hearing is expected to examine issues around the potential for future provision of new gas storage facilities and whether the costs should be borne by the taxpayer or, ultimately, businesses and consumers.

Rachel Reeves MP, Chair of the BEIS Committee, said: "As winter approaches, we want to examine what action the government is taking to ensure we can have confidence in the security of our gas supplies. We will want to question industry experts and government on the future role for gas storage following the closure of the Rough gas storage facility and in the light of weather events such as the ‘Beast from the East’.

"Given our increased reliance on gas imports, we will also be asking what government is doing to guard against gas shortages and the potential knock-on effects of increased energy costs for businesses and domestic consumers".

The decision to carry out the inquiry was welcomed by the Energy & Utilities Alliance (EUA).

Roddy Monroe, independent Chair of the EUA's Gas Storage Operators Group and participant in the enquiry, said: “I firmly believe that there may be serious implications for UK energy security if policy makers rely solely on the market to deliver the right level of investment to meet broader government’s objectives including transiting to a low carbon economy and providing access to affordable energy.

"Energy security is underpinned by long life, capital intensive investments which require long term financial certainty; these are not characteristics found in our energy market today. We have seen that the government felt it necessary to intervene to help deliver positive changes to the electricity market, such intervention may now be necessary for the gas market if we are to provide the right level of gas security."