Energy supply

Overview

Energy needs are different across our operating markets. With the UK becoming a net importer of energy as North Sea gas reserves decline, the issue of energy security is paramount. North America faces different energy issues, with the US and Canada seeking to capitalise on domestic energy reserves and to reduce reliance on foreign energy imports. Explore our page on energy security to learn more about the issue.

The role of gas in a low carbon future

Alternatives to fossil fuels must be explored to realise the low carbon future, however, gas will continue to have a significant role to play in the years ahead. Gas still heats over 80% of Britain's homes whereas electricity heats less than 10% and at more than double the price of gas. Gas also currently provides more primary energy to the UK than coal, nuclear and renewables put together. The UK Government's Electricity Market Reform and Gas Strategy both indicate a long-term role for gas-fired power generation.

In order to reduce our dependency on gas, Government, industry and consumers have a role to play in supporting alternative forms of energy supply to heat and power our homes and businesses. While gas consumption will continue to decline over the long term, our expertise in gas exploration and production will ensure that we remain the UK's leading supplier of gas. In turn, this will mean that we can continue to supply our customers with the affordable energy that they need.

Our energy supply mix

We source energy through a diverse portfolio. We continue to procure gas from a range of sources, including liquefied natural gas (LNG). Our new corporate strategy sets out our ambitions to continue to invest in both conventional and unconventional gas sources, including shale with North America as a particular focus.

We operate seven gas-fired power stations in the UK and three in Texas for our US customers. We are continuing to expand our offshore wind portfolio in the UK, and our Lincs wind farm generated its first power in 2012. We see nuclear as an important part of the energy mix, as it provides a secure, low carbon source of baseload power. We own a 20% interest in eight nuclear power stations in the UK; however we do not operate any nuclear stations. View more information about our UK power generation assets.

Sourcing and supplying energy responsibly

There is a need across all regions to manage the social and environmental impacts that can come from supplying energy. New forms of energy, such as shale gas, present opportunities for energy security. However, they also raise significant concerns if operations are not planned or conducted in a responsible and sustainable manner. We aim to minimise the social and environmental impacts of our operations through consultation with communities, carrying out environmental impact assessments and managing our operations responsibly.

2012 Performance Review

Read a strategic update on our energy supply activities in the 2012 CR Performance Review.

• Download 2012 Performance Review PDF (3.80Mb)

Data

Find 2012 data for our energy supply performance indicators in our interactive data centre.

• View our energy supply indicators