|
|
 |
| Ofgem Report
Fails to Explain Uncompetitive UK Gas Prices |
|
 |
Press release issued Tuesday 5th October 2004 –
13:00pm
After a year of work, Ofgem has failed to explain why
half of the recent surge in UK gas prices has occurred. Wholesale gas
prices in the UK have risen 70% over the last 18 months and are now 40% above
continental levels, where prices are indexed to fuel oils. UK
manufacturers have been left at a severe competitive disadvantage compared with
our European neighbours.
Rising oil prices provide no explanation for UK prices
being higher than those on the continent. Tightening UK gas supplies are
not an explanation either, since the UK produces more gas than it can
consume and, on an annual basis, remains a net exporter.
Commenting on today's report, EIUG's Director Jeremy
Nicholson said: "Consumers have every right to feel let down by the regulatory
regime. While UK manufacturers are getting a raw deal, Ofgem has failed
to appreciate the seriousness of the situation or to say why it
is happening."
Notes to editors:
- The EIUG represents the UK’s industrial sectors for
which secure internationally competitive prices are a matter of commercial
necessity.
- Industrial consumers are facing 30-40% increase in the
costs of their gas supplies over the year ahead, adding over £1bn to the
UK’s industrial production costs. Rising wholesale gas prices are
also a major contributor to the increase in wholesale electricity prices, which
have risen 50% over the last 12 months.
- For further information, please contact Jeremy Nicholson
(tel. 07785 280568).
|
|
