Leading energy users met officials from the Department for Business, Enterprise and Regulatory Reform yesterday to discuss supplies for the coming winter. The meeting took place as seven of Britain’s sixteen nuclear reactors were out of action, raising concerns that energy supply could be tight again this winter.

Two years ago many heavy energy users, including ceramic tile makers and chemical plants, were forced to stop production for short spells after threefold increases in the price of gas.

Jeremy Nicholson, spokesman for the Major Energy Users’ Council, said that, while the situation this winter should not be as critical as in 2005, there was already evidence that forward gas prices were 10 per cent higher than last month.

This week, forward gas prices soared 30 per cent as it became clear that British Energy would have to close two further reactors - leaving the country more reliant on imports.

The meeting between energy users, business groups and consumer champions is taking place the day after the Government released its first comprehensive Energy Markets Outlook for the year.

The Government promised to make more information on security of supply available in its Energy White Paper, published in May. Mr Nicholson said that the Energy Markets Outlookprovided no surprises but was welcome in that it promised a new era of openness between Whitehall, the energy industry and its biggest customers.

“Previously, the department was naive about the likely costs and security of supply. This report shows more realism coming in. They are becoming more evidence-based and less ideological,” Mr Nicholson said.

Charles Hendry, the Shadow Energy Minister, said that the greatest risk to Britain’s long-term energy security was the Government’s failure to make big decisions.

“Around 30 per cent of our electricity generation capacity will come out of production in the next 20 years and decisions need to be made now about investment in new generation capacity if we are to keep the lights on,” Mr Hendry said. “Business needs much greater clarity and information to be able to invest in new generation capacity.

“Our energy security is one of the most important priorities for any government, but by failing to take the important decisions this Government is directly putting our future energy security at risk.”

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