4 April 2008
Gas prices in the UK are being hiked as firms in Europe are buying energy in the summer and then keeping hold of this supply during the winter months, it has been claimed.
Centrica Energy suggested that European firms have pushed up the price of gas in recent times because of this development, reports the Guardian.
Demand for energy from the continent often means that gas is taken directly from the UK, Managing Director of the firm Jake Ulrich noted, something that has led to a 45% rise in wholesale prices.
The UK and economy could be in real trouble if this continues to be the case, he said, as other European companies may not be willing to give gas back.
He stated at a recent meeting: "The UK faces becoming the gas lender of last resort and we are alert to the very real threats that this poses to the UK economy and prices."
The outfit also estimated that five times the amount of gas was taken out of the UK in the last year than the level pumped back into the area.
Recently, uSwitch.com argued that energy switching figures released by Ofgem are not proof that everyone is benefiting from cheaper deals.
© 2008 Adfero Ltd
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