GAS shortages could lead to power cuts which would cripple industry this winter, it emerged yesterday.

As an official study highlighted the shortage, business leaders warned that a harsh winter could mean there is not enough gas to maintain supplies to both homes and businesses.

With the Met Office warning that the country faces a colder than average winter this year, this could mean factory closures and thousands of workers being sent home.

Fears arose after a National Grid study identified emergency measures designed to ensure that power for heating and lighting is maintained to domestic users.

These involve asking or forcing major industries such as chemical producers to stop using gas. They also include dimming the lights by turning down the voltage in the mains supplies.

Gas is used to fuel around 40 per cent of the country's power stations, which is why electricity supplies are under threat.

Energy Minister Malcolm Wicks, who has admitted there is a problem, said businesses would be first in the firing line if gas and electricity run short.

'We could have a tight winter,' he added. 'It's not about switching off the domestic customers but there could be problems for industry.' The National Grid has not been forced to take compulsory measures to conserve power supplies since the blackouts caused by the miners' strikes of the 1970s.

Asked whether cuts may be needed this winter, a spokesman said: 'We never say never.

We plan for any eventuality.

We cannot speculate.' Business leaders condemned the situation.

Andrew Bainbridge, chief executive of the Major Energy Users Council, said: 'We have previously been told that there is plenty of gas, but it now seems the powers that be are not so sure. The situation is chaotic. My members have been shaken rigid by current events.

'The energy industry is in a crisis state. You have spiralling prices and a question over supplies.' The problem has arisen because Britain is no longer self-sufficient in gas.

At the same time there is a shortage of stored gas which could see the country through a period of high demand only 11 days of supply, compared with 55 days in some European nations.

As a result, the country will be reliant on gas imported from Europe via a pipeline under the North Sea and will also rely on substantial imports of electricity from France via cables.

But there is no guarantee that either the gas or electricity will be available in sufficient quantities.

The Confederation of British Industry criticised the Government and planning authorities for failing to ensure enough gas storage facilities have been built.

Michael Roberts, the CBI's director of business environment, said: 'It is not certain there will be a catastrophe.

But if we get a harsh winter that could have severe consequences.

'Either businesses will have to find ways to reduce demand, perhaps by switching to other sources of energy, or it could mean closing plants for a period of time.' MPs on the Trade and Industry Select Committee have announced an inquiry into the concerns.

Concerns about shortages have sent gas prices rocketing. The average household bill has risen by more than a third in the last three years.

s.poulter@dailymail.co.uk

Where does our gas come from?

MOST comes from the North Sea. However, these gas wells are running dry and, as of this year, the UK is no longer self- sufficient.

How will the shortfall between supply and demand be made up?

THIS year the UK is more reliant than ever on gas held in storage and supplies imported through a pipe under the English Channel, which runs between Zeebrugge, in Belgium, and Bacton, Norfolk.

Why is there a risk of a shortage?

UK gas storage facilities are too small.

They hold the equivalent of around 11 days supply for the country, compared to up to 55 days in some European states. The Government has failed to prioritise the building of new storage to cope with the fall in North Sea supplies.

There are also concerns that European gas suppliers will not send gas to the UK this Winter through the Channel pipe in the quantities required. They are under no obligation to do so and

may decide the gas is needed in their home markets.

Why does a shortage of gas threaten electricity supplies?

AROUND 40per cent of the country's power stations burn gas to generate electricity. These stations could find they do not have the gas they need to function.

Britain will also rely on importing substantial quantities of electricity from France, via cable.

What conditions will trigger the gas shortage feared?

A MILD winter will mean low demand for heating and there will be enough gas for all. An average one will probably mean a few industrial customers and power stations having gas supplies cut off on a voluntary basis. A harsh winter a one in 50-year occurence last seen in 1963 would bring widespread disruption to power supplies to industry.

Cuts could be forced on firms. The mains voltage could be turned down, so dimming the lights.