5 September 2005
Utilities provider Centrica has warned that Britons will soon be paying too much for their gas, it emerged today.
In a study, Centrica says that the limited liberalisation of Europe's gas markets could cost British gas users up to £10 billion a year.
Liberalisation began in 2000 but so far there has been insufficient cross-border action to make a fully joined-up energy market a reality.
"There can be little doubt that UK consumers are paying the price for Europe's failure to sufficently open its energy markets as we become increasingly dependent on gas imports," the report said.
All gas suppliers have hiked prices sharply recently, with some experts estimating prices have risen by 21 per cent.
The report concluded: "Effective markets would not allow hyper-profits. Prices in a well functioning market are set by competition and are based on real costs, not on an artificial link to another commodity."
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