Before discussing where the UK might get its gas supplies from in the future,it is important to emphasise that the UK operates a free-market system similar to that of the US.The principal drawback of this system is that there is no single company whose main responsibility is to ensure that the UK is well-supplied with natural gas,as there was in the days when British Gas was still a nationalised company.To sign a long-term supply contract a company usually needs totally or partially guaranteed sales prices.The wholesale price that companies get for selling their gas in the UK is determined by the National Balancing Point(NBP).When gas prices are high,as over the last year or so,there is little incentive for gas suppliers to enter into long-term supply agreements,as supplying'spot'will be more profitable.With no guaranteed price for the gas in the long term,they then sell within the UK market.Sellers cannot usually bare the risk of buying at high prices as a result of long-term supply contracts,and then having to sell low because of low prices on the NBP.
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