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British Gas owner warns energy prices could rise further UK News

Energy bills could be even higher if the UK experiences a long or particularly cold winter, the owner of British Gas has said.

Natural gas prices have already hit an all-time high with over 50% increase in energy costs over the past six months, leading gas prices to new highs amid problems supply and increased inflation, Ofgem said.

Cassim Mangerah, who heads energy trading at Centrica, which owns British Gas, said restrictions on the amount of natural gas available around the world could have significant implications for UK consumers during a harsh winter.

“We’ve never seen a pricing situation like this before. If you can’t attract supply, the only alternative is to reduce demand to balance the market, ”Mangerah told the Financial Times.

“If we are seeing a tightening of supply this winter, the other way to balance the market is through economic activity.

“If the prices are really high, some gas-dependent companies in the UK and Europe may just decide not to produce,” he added.

British energy companies increase their prices

It comes after more than two million homes saw their British Gas energy bills increase by £ 97 a year in April.

The price hike came two weeks after industry regulator Ofgem announced it would raise the energy price cap by £ 96.

Subsequently, E.On and Scottish Power told customers standard tariffs would increase by around £ 139 per year, the maximum allowed by the regulator Ofgem from October 1.

Ofgem reviews the price cap once every six months and changes it based on the cost that suppliers have to pay for their energy, the cost of policies and operating costs, among others.

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This notice was published: 2021-09-03 06:08:04

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