Trade union Unite urges Labour to contemplate nationalising ‘important’ Rough gasoline storage facility
Trade union Unite has urged Labour to consider nationalising Britain’s Rough storage facility saying its closure would hit hundreds of jobs and make it harder to keep the lights on.
In a significant intervention by one of the party’s major backers, Unite called on the government to consider all options to help keep the North Sea facility open.
It comes after a minister this week dismissed the latest appeal for support for the site from the boss of Rough’s owner Centrica, which is also the parent company of British Gas.
Rough represents about half of Britain’s gas storage capacity. Centrica’s bosses have warned it could close by next April without government help, damaging Britain’s resilience should it need to call on domestic reserves at times of high demand.
It comes as fears are growing over an energy crunch in coming months after supplies of gas from the Middle East were choked off by the Iran war.
Unite said there was growing anxiety about Rough’s future unless the government agrees to a new funding formula.
The North Sea facility represents about half of UK gas storage capacity
General secretary Sharon Graham said: ‘The Rough storage facility is essential to the energy security of the UK.
‘Threats of closure are endangering jobs and our ability to keep the lights on and heat homes.
‘The general public will not forgive the government or Centrica if this facility is allowed to close and our energy supply becomes even more risky in an increasingly uncertain world.’
Unite said the closure of the Rough platform would see 100 jobs lost and a further 350 affected in the supply chain.
The union said that Rough was part of the UK’s critical infrastructure and that ‘all options need to be considered in ensuring it remains open and fully operational’ including ‘the possibility of bringing it into public ownership’.
Centrica has been in talks with the government over a mechanism to help fund a £2 billion investment into the facility, which the company would supply upfront but would be underwritten by a guaranteed minimum price at which energy is purchased.
Earlier this week, Centrica boss Chris O’Shea told the BBC: ‘The future of Rough is too important to the UK to be dismissed as simply a “commercial decision”.
‘The UK’s energy security cannot be taken for granted, and Rough is an opportunity to strengthen our national security and resilience, safeguard existing jobs, create new ones and drive investment and growth in the UK – delivering on the Government’s own ambition to reindustrialise Britain.’
But defence minister Luke Pollard swiftly rejected the appeal, saying: ‘Centrica are a big company with deep pockets. They can choose their investments that they want to make.’
A spokesperson for the Department for Energy Security and Net Zero said: ‘UK gas supply is diverse and highly resilient. Gas storage was only 5 per cent of our supply last winter.
‘We have plans in place to maintain our energy security, whilst ensuring value for money for consumers and continuing the transition to clean power.’
