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British Gas parent company Centrica has shut a major gas field which supplies cheap gas to the UK.
The energy supplier had threatened to stop operating from the South Morecambe gas field after the government announced a tax hike on production from 20 per cent to 32 per cent.
Centrica said this increase would add an extra £300 million in costs and noted it will now be easier to import gas from other countries.
Sir Roger Carr, chair of Centrica, commented at the recent AGM: "It's probable that these changes will affect our plans to invest in the UK North Sea, which will have an impact on jobs and North Sea investment."
As yet, none of the 400 staff who work at Morecambe Bay have been laid off, the North West Evening Mail reported.
Meanwhile, the first constructed turbine at Scottish and Southern Energy's Clyde onshore wind farm in South Lanarkshire has begun generating green electricity for the national grid.
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