EIUG Welcomes Ofgem Probe into 80% Rise in Gas Prices
Press release issued 14 November 2003
The Energy Intensive Users Group welcomes today’s announcement by Ofgem that it is investigating wholesale gas prices, which have surged in recent weeks. EIUG had written to Ofgem asking for an investigation to determine whether the price rises point to any evidence of fundamental problems in the market, drawing attention to the difference in UK and continental prices.
EIUG’s Director, Jeremy Nicholson, comments: “We hope Ofgem can speedily establish whether the market is operating satisfactorily or, if not, what action needs to be taken to put things right.”
- The EIUG represents the UK’s industrial sectors for whom secure, internationally competitive prices are a matter of commercial necessity.
- EIUG estimates an 80% increase in wholesale gas prices, if sustained, would add over £400m to its members’ annual production costs. Many large industrial consumers buy gas at spot-related prices and are therefore directly affected by any rise in wholesale prices.