According to the company’s owner, if the UK experiences a long or particularly cold winter, record natural gas prices may rise further. British Gas
In the past six months, energy costs have increased by more than 50%, and natural gas prices have reached new highs due to supply problems and increased inflation. gem Say.
Cassim Mangerah, responsible for energy trading U.K Gas owner Centrica Said that during the ongoing winter, restrictions on the amount of global available natural gas could have a significant impact on British consumers.
If the price is really high, some companies in the UK and Europe that rely on natural gas may decide not to produce
“We have never seen such a price situation before. If you cannot attract supply, the only option is to reduce demand to balance the market,” Mr. Mangla told the Financial Times.
“If we do see a supply shortage this winter, another way to balance the market is through economic activity.
“If the price is really high, then some companies in the UK that rely on natural gas and Europe It may just be decided not to produce,” he added.
Earlier, two major energy suppliers confirmed autumn price increases for millions of households last month to coincide with Ofgem’s price ceiling increase.
The standard tariff prices of E.On and Scottish Power will increase by approximately £139 per year, which is the highest level allowed by the regulator Ofgem from October 1.
Other companies are expected to follow up.
In early August, Ofgem confirmed that it allowed suppliers to increase the bills of approximately 15 million households by at least £139, a record high due to the increase in wholesale prices.
The regulator said that energy customers who pay default tariffs through direct debit will see the largest price increase since the introduction of the cap, with an average bill of £1,277.
Ofgem reviews the price caps every six months and changes them based on the costs that suppliers must pay for their energy, policy costs, and operating costs.
