Ofgas forces prices to level
15 Jan 2000
The price of gas has levelled out after a 23.2 per cent rise in 1997. Due to Transco's reduced transmission costs, a 2.7 per cent drop was recorded by the National Utility Services (NUS) survey over 1998, leaving gas prices at a European low of 0.72 pence per kWh.
Apart from reduced transportation costs after much wrangling between Transco and the gas regulator (Ofgas), there has been little change in actual UK gas prices.
The NUS predicts the halt will be temporary, and costs will continue to climb over the next year once the European gas interconnector comes on-line. Andrew Johns of the NUS believes this link will allow UK suppliers to sell gas in Europe at higher prices, gradually driving up prices at home.
Spain has enjoyed the largest price drop of 12.5 per cent but follows the general European trend of price reduction after 1997's large gains. Only France saw price rises, with a 0.8 per cent increase. Swedish prices remain the highest in Europe.
