Improved gas supplies but bills no lower

27 September 2007

Households face a winter of unchanged energy bills, despite improvements to the nation's gas supply.

According to a forecast by National Grid, Britain will have access to a higher volume of gas this winter than last, up 73 million cubic metres to 546 million cubic metres.

Norway's Orman Lange field will provide the extra gas, energy regulator Ofgem has explained, as a result of the opening of the Dragon import terminal at Milford Haven, South West Wales at the end of the year.

A new storage facility at Aldbrough in East Yorkshire will also help increase supplies after it opens later this year.

In the report, Alistair Buchanan, chief executive of Ofgem, said: "More investment means that we have the potential to import and store more gas this winter than last.

"While this is welcome news, we must not forget that we are vulnerable to fluctuations in global energy prices."

Speaking to the Financial Times, Adam Scorer, director of campaigns at consumer group energywatch, said: "You'd hope that this positive outlook might provide the assurance for some suppliers to compete again on price.

"But there is a much greater chance that suppliers will sit tight on their high consumer prices whatever the market conditions, whatever the improved supply outlook, indeed whatever the weather."

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