Gas price rises prompt urgent government talks

EU bans Russian energy investments image- Wikipedia

The Business Secretary will hold talks with representatives of the energy industry over increasing concerns about the rise in wholesale gas prices.

The Business Secretary, Kwasi Kwarteng, will hold talks with representatives of the energy industry over increasing concerns about the rise in wholesale gas prices in the UK.

The meetings will be held today, September 18, with senior executives from Ofgem, Centrica, National Grid, Energy UK, Octopus, Ovo, SSE, EDF, ScottishPower, Shell Energy, E.ON, Bulb and SGN.

Former Ofgem chief executive Dermot Nolan warns that the UK may face increased energy prices for the rest of this year.

“It is not obvious to me what can be done in the very short run. Britain does have secure relatively diverse sources of gas, so I think the lights will stay on,” he told the BBC Radio 4 Today programme.

“But I am afraid it is likely in my view that high gas and high electricity prices will be sustained for the next three to four months.”

Government sources have apparently said that the UK’s gas supply is not under threat, however, the potential impact on small energy companies that are most at risk are being monitored.

Meat producers are urging the government to protect the food supply chain following a steep increase in the price of gas that has resulted in a decrease in the supply of carbon dioxide (CO2) to the industry.

C02 is a byproduct of fertiliser, which is an important component when producing and transporting a variety of products such as meat, bread, fizzy drink and beer.

A government spokesperson told the BBC: “The UK benefits from having access to highly diverse sources of gas supply to ensure households, businesses and heavy industry get the energy they need at a fair price.

“We are monitoring this situation closely and are in regular contact with the food and farming organisations and industry, to help them manage the current situation.”

OGUK, which represents the nation’s offshore oil and gas industry, said wholesale prices for gas have increased by250 per cent since January and 70 per cent since August alone.


Thank you for reading, and don’t forget to check The Euro Weekly News for all your up-to-date local and international news stories.

FacebookTwitterRedditWhatsAppTelegramLinkedInEmailCopy Link
Go Back
Written by

Laura Kemp

Originally from UK, Laura is based in Axarquia and is a writer for the Euro Weekly News covering news and features. Got a news story you want to share? Then get in touch at [email protected]

Comments


    Leave a comment

    Your email address will not be published.