UPDATE 1-UK gas demand falls as recession bites

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LONDON, Feb 17 (Reuters) - Demand for gas in Britain has fallen by four percent so far this winter, compared with the same period last year, as recession cuts energy use, according to energy network operator National Grid (NG.L).

Increased exports to continental Europe have mopped up some of the gas in the network since the start of October and there has been a slight increase in demand for power generation.

But overall demand for gas in Britain from October to mid-February is still down from the same period last year.

"If you take out exports there has been a four percent drop in gas demand," a National grid spokesman said, adding the recession was probably the cause.

"That's what we think is driving it," he said.

"Across the winter so far, if you correct for weather, we have seen local distribution zone demand down 6 percent compared to last year."

This winter has been one of the coldest in decades, which should have supported demand for gas for heating British homes and businesses.

The fall in industrial activity because of the economic downturn led National Grid in November last year to revise down its forecasts for electricity demand and further trim its outlook in January.

According to the grid operator's latest analysis of winter gas consumption, updated on Tuesday, the country's appetite for gas has also fallen markedly, with many industries in Britain which use gas as a raw material, cutting back because of falling demand for their own goods.

A lot of the fuel that was pumped into the British network from the North Sea was exported to Belgium in January when parts of continental Europe were starved of Russian gas. [ID:nLK301311] (Reporting by Daniel Fineren, editing by Anthony Barker and Guy Dresser)