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.”
Notes:
- 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.
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