Gas Prices to Soar and Stay High

GAS prices are set to soar and then remain high for the foreseeable future, a report has revealed.

The independent report commissioned by Centrica, which owns British Gas, warns prices could increase by 70%.

Jake Ulrich, managing director of Centrica Energy, admitted that gas price rises were likely to lead to a “potentially significant” rise in the number of people in fuel poverty.

He also predicted people would have to change their habits to deal with higher prices.

He said: “I do think we will see people change their behaviour.

I hate to go back to the Jimmy Carter days in the US but maybe it’s two jumpers instead of one.”

He added: “I think people will change the temperature they keep the house, they’ll be more cognisant of energy waste, they’ll buy better appliances.”

Gas and electricity watchdog energy watch called on the Government to act now to reduce the pressure on wholesale gas prices and force the industry to deliver affordable energy for Britain’s poorest consumers.

Chief Executive Allan Asher said: “The Government is right to say that the link to oil is a cause of the problems but wrong to say there is nothing that can be done.

“Government can and should act in those areas where it can have an effect.

Action to cut to the price link between gas and oil, improve the working of the domestic market and to help those who can least afford to keep warm.”

(c) 2008 The Journal – Newcastle-upon-Tyne. Provided by ProQuest Information and Learning. All rights Reserved.