Bill Rises Blamed On Overseas 'Rationing'

High UK gas and electricity bills have partly resulted in foreign suppliers "rationing" domestically-produced gas, the Daily Mail reports.

The allegations emerged in comments from the Energy Intensive Users Group to a parliamentary committee yesterday. Jeremy Nicholson at the body - which represents many of Britain's heaviest gas and electricity users - said that the foreign companies were deliberately refusing to sell the fuel at times of peak demand, boosting prices for businesses and consumers alike. Ironically, much of this gas was originally produced from the UK's own North Sea resources, and was then sold on to the overseas firms.

"That [refusal to sell] leaves us very vulnerable," Mr Nicholson commented. Chris Tane at the Chemical Industries Association agreed, saying that just six of 19 overseas companies approached by the firm last year replied to its request to sell it gas based on Continental prices. All refused.

The problem is compounded, the experts claimed, by the allegedly anti-competitive behaviour of large UK energy suppliers including British Gas. These firms have been accused by some analysts of operating as a closed cartel, synchronising price rises in order to limit consumer choice.

In order to solve the problem, the experts recommended that the UK improve its fuel storage reserves in order to negate the need to negotiate with foreign firms to buy back gas. However, Britain currently has just 13 days worth of gas stored, compared to 99 days in Germany.

The comments come as figures are released from the Organisation for Economic Co-operation and Development, showing that UK energy prices have grown by almost 14 per cent over the past year. In Germany, the figure is just 9.5 per cent.
 

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