Friday, 24 December 2010

Gas prices could increase as cold snap continues

For the first time since the freezing weather once again took the UK by
surprise, the National Grid has issued a warning to some companies that they
will have to rely on generators so that stocks can be diverted to houses.
The 'gas balancing alert' was issued following Sunday's record demand for
460 million cubic meters of the fuel.

There are now serious concerns that households, which have already seen a
hike in their energy bills, will suffer further price rises in the new year.
The wholesale price of gas has already risen by 11 per cent, and this
increase may well get passed on to the consumer.

Although energy providers usually manage to keep costs down by purchasing
fuel on longer term contracts, the sudden demand for fuel means those firms
are now having to source gas for immediate delivery, which is far more

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