Gazprom fuels UK energy worries

London —Russian energy giant Gazprom’s arrival in the UK is one of the biggest threats to competitive pricing in the country’s energy supply market, according to the Major Energy Users’ Council Ltd (MEUC).

Gazprom recently took its first steps into the UK energy market with the acquisition of Pennine Natural Gas Ltd’s supply businesses. While PNLGL is a small independent player, it could provide the Russian company with a platform for expansion in the sector.

The diminishing number of suppliers and the likely takeover or merger of those that remain are key issues impacting the supply of affordable energy in the UK, according a 20 July statement from London-based MEUC.

“The main worry for the future could be that the Russian Gazprom which has taken over Pennine Gas, will presumably pump huge investment into this little company and use it to buy a significant market share,” said Andrew Bainbridge, MEUC director general.

Calling on the Government to address the situation, Bainbridge said: “There is no real competition in the market now. Suppliers’ prices are almost identical and many large customers are re-negotiating their existing contracts rather than going out to tender.

The MEUC director went on to welcome the emphasis on energy efficiency in the government’s Energy Review but noted that many businesses have failed to recruit high calibre engineers and reluctant to spend money on new systems and equipment.

“After years of expensive Government propaganda, UK management and staff are largely apathetic concerning energy waste. Unless there is a radical change in attitudes and habits, the Government’s targets will not be met,” said Bainbridge.