Fear of more increases as gas prices soar
17/03/2006
Domestic gas bills are set to rise yet again after a period of cold weather has heightened demand for the UK market.
Consumers have so far been hit by price increases of around 20 per cent from npower, British Gas and Powergen, increasing the average gas bill by £70 in the last three months.
A fire at Britain's main storage facility that helped constrict availability earlier this week and worldwide energy companies having to currently pay up to 250p per therm has brought government policies under scrutiny and, in some cases, criticism.
"The government appears to be blaming France and Germany for the UK's gas shortage," said Alex Salmond, the leader of the Scottish National party.
"The real culprit is the incompetence and short-sightedness of successive governments to secure supply and additional storage."
But energy ministers have responded by denying a threat existed to long term gas supplies.
The latest rise in gas prices reflects a longer term trend of reduced supply caused by declining reserves of gas in the North Sea, which has forced British energy companies to construct new pipelines across the Channel and pass increased wholesale costs onto consumers.
Consumers have so far been hit by price increases of around 20 per cent from npower, British Gas and Powergen, increasing the average gas bill by £70 in the last three months.
A fire at Britain's main storage facility that helped constrict availability earlier this week and worldwide energy companies having to currently pay up to 250p per therm has brought government policies under scrutiny and, in some cases, criticism.
"The government appears to be blaming France and Germany for the UK's gas shortage," said Alex Salmond, the leader of the Scottish National party.
"The real culprit is the incompetence and short-sightedness of successive governments to secure supply and additional storage."
But energy ministers have responded by denying a threat existed to long term gas supplies.
The latest rise in gas prices reflects a longer term trend of reduced supply caused by declining reserves of gas in the North Sea, which has forced British energy companies to construct new pipelines across the Channel and pass increased wholesale costs onto consumers.
