15 April 2008
The British gas market is fairly "volatile" and it is difficult for firms to compete and offer low prices, it has been claimed.
Chief Executive of Centrica Sam Laidlaw stated in the Guardian that wholesale gas prices can often fluctuate and that European countries can take gas from the UK and then not return it when required.
He wrote in the publication: "Current prices for summer 2008 are at unprecedented levels, more than 45% higher than this time last year - and yet despite this, gas has not been flowing into the UK when high prices should have attracted it in."
Moreover, he noted that the largest challenge is to "secure the provision" of gas, but at the same to generate deals that consumers can afford. His own firm, British Gas, would have lost money had prices not been hiked this year, he noted.
Mr Laidlaw, however, suggested that matters have been helped because UK customers are now looking at other ways to purchase their energy, with 4.2 million opting into services including online items.
Earlier this week, Energy Secretary John Hutton stated that a fresh agreement has been made between six energy firms and the government in an attempt to give more support to those in fuel poverty.
© 2008 Adfero Ltd
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