The latest Quarterly Energy Prices report, published by the UKs DTI, revealed average industrial gas prices were over 65 per cent higher in the first quarter of 2006 than in the first quarter of 2005.
The report also demonstrated how average industrial electricity prices have been pushed around 50 per cent higher over the same period, due to the use of gas in electricity generation. Industrial users have thus seen far greater rises in costs than those suffered by domestic consumers.
The DTI’s European Union data for January 2006 showed that for the most energy intensive electricity users, only Italy had higher electricity prices than the UK; similarly for gas prices, only Germany and Austria, by a small margin, experienced higher gas prices.
The Chemical Industries Association (CIA) supports the work by Ofgem and DTI to minimize the economic damage caused by possible gas shortages, reflected in high forward prices. It emphasizes the benefit of Ofgem and DTI continuing to work with the EU Commission to ensure that UK consumers can have access to the same contractual terms as their European competitors.
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