INDUSTRIAL plants in the North-East last night faced cuts to their gas supply amid shortages caused by the freezing weather conditions.

National Grid, which operates Britain’s gas network, issued an alert asking gas companies to turn off supply to some business customers.

It hopes the move will safeguard supplies to homes and offices.

The alert followed a drop in pressure along a pipeline bringing gas from Norway to Easington, County Durham.

It comes as the Arctic conditions push UK demand for gas to record levels.

Ross Smith, head of policy and research at the North East Chamber of Commerce, said the shortages highlighted the need for more gas storage capacity in Britain.

He added: “We would urge these measures to be used only as a last resort.

“In 2010 what we need is economic recovery, but that can only happen if businesses are allowed to be successful.”

The cuts affect firms that have special “interruptible”

contracts.

The contracts are often signed by firms with a high energy use – such as chemical and steel plants – in exchange for a cheaper rate.

Although the cuts hit companies in the North-West and East Midlands yesterday, the Tories said last night that there was a high risk that North-East firms would also be affected.

Greg Clark, shadow energy and climate change secretary, and shadow minister for Teesside, blamed “Labour’s negligence” for the shortages.

He said: “Gas supply shortages are already being predicted and at today’s level of demand we only have enough stored gas for another eight days’ worth of supply.

“The Government has had its head in the sand on this issue for 12 years.

“When will the Government understand we need more storage capacity and the ability to get gas to consumers so nobody has to face the possibility of going without gas during cold snaps like this one?”

Statoil, the Norwegian state energy company, said its giant offshore gasfield suffered a minor technical problem which forced it to shut down production for one hour yesterday.

The stoppage caused pressure to plunge in the pipeline to Easington, prompting National Grid to issue the National Balancing Alert – the second such warning in three days.