30 September 2005
Energy prices are to rise further and consumers are to face more discomfort over the following weeks, a new report has said.
According to news agency Reuters, high wholesale gas prices are to blame for the news, because almost half of the UK's power stations are gas-fired.
Also to blame is the European Union's emissions trading scheme of carbon dioxide allowances.
"We estimate the emissions trading scheme had added about five pounds a megawatt hour to power prices," said Matt Williamson of the Energy Information Centre.
Most analysts are pessimistic that things will improve in the short term.
"There could be at least one or two more suppliers putting up prices in 2005 and then more will happen in 2006," Andrew Hill of independent analysts Datamonitor told Reuters.
"The size and the magnitude of the increases will depend on the weather. The gas market is short, so the weather is even more likely to steer (wholesale) prices."
Jeremy Nicholson, director of lobby group Energy Intensive Users Group, added: "Prices certainly aren't going to come down next year. Year ahead prices (in the wholesale market) are slightly higher than this year."
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