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Winter fuel supplies ‘uncertain’

British Gas, Energy News, Monday, August 28th, 2006

The owners of British Gas have warned of possible winter fuel shortages, saying that supplies are set to be ‘uncertain’.

The last few years have seen pressure on UK supplies, leading to higher prices, as the country’s own reserves were used up more quickly than expected, and supplies from Europe not operating at full capacity as continental energy firms held back gas despite the UK’s higher prices.

Two new pipelines are nearing completion to bring in gas from Norway and Holland, but BG’s owners Centrica said that on past performance the infrastructure may go underused.

Shortages in supply would almost certainly lead to higher wholesale prices, in turn putting pressure on domestic and commercial prices.

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