Gas prices could rise as market tightens
Gas prices could rise as market tightens
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Age: 29
Position: Midfield
Country: Germany
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Previous clubs: Chemnitzer, Kaiserslautern, Bayer Leverkusen, Bayern Munich
In his own words: It's all or nothing, but that's what we've been expecting all along. |  |
Wednesday, 17, May 2006 09:13
Gas supplies to the British economy next winter could be tighter year on year, according to regulator Ofgem.
Ofgem is urging big consumers "to act with caution", as concerns grow that the British gas market will struggle to cope.
Last year output from North Sea fields dropped more rapidly than predicted, causing major supply problems.
Now Ofgem says voluntary cuts in consumption by industry gas users will play a key role in balancing supply and demand, basing its analysis on data from the National Grid.
The energy regulator warned of possible higher energy prices ahead, as chief executive Alistair Buchanan explained.
"National Grid's report shows we potentially face another winter of tight gas supplies," he said.
"Industry should adopt a cautious approach, as there is no room for complacency."
The new trade and industry secretary Alistair Darling recently announced contingency plans for gas storage and import projects.
In a statement, Mr Darling said there was a "compelling" case to speed up planning.
The government is currently undertaking an urgent review of energy policy.
