Addressing the House of Lords economic affairs committee, Chancellor George Osborne explained that although he and Prime Minister David Cameron were supporters of fracking, it was unlikely to cut bills by 40% as it has done in some areas in the USA.
The main reason for this is that the UK is part of a European energy market and as such a single country fracking is unlikely to dramatically affect energy prices. The situation is different in the USA which operates within a closed energy market.
Fracking is not ‘the solution to all of this country’s economic problems’
Speaking on the potential of hydraulic fracturing or fracking in the UK, Osborne said: “I just don’t want to over-promise.
“I don’t want to go out there and say this is the solution to all of this country’s economic problems.
“I think we more closely track the worldwide gas price than the US does and we have less ability to detach ourselves from the worldwide gas price,” he added.
Cuadrilla aiming to drill at two sites by 2015
The news follows yesterday’s reports that energy firm Cuadrilla is in the process of applying for permission to frack in two locations in Lancashire.
The company has said it will aim to be a ‘good neighbour’ and will closely monitor any seismic activity in the region should the drilling be given the green light.