Expert warns uncertain gas supply could threaten cheap energy - 20/02/2009
An expert has warned that an uncertain gas supply in Europe could threaten cheap energy rates in the future, reports the BBC.
Ian Parrett, of Inenco, warned that both domestic and business gas and electricity prices could begin to rise as the economic situation improves.
Other experts have suggested that energy suppliers will reduce their prices in the coming months as a result of sustained low costs in the wholesale market.
Mr Parrett told the organisation: "The economic situation has resulted in reduced demand for gas, which obviously has an implication on profitability for the energy supply companies. One possible way of maintaining profitability is by keeping the prices up."
He added that if the UK remained dependent on foreign imports then consumer prices could rise if overseas supplies became less stable.
The UK's major energy suppliers have been criticised for failing to pass on cheap energy rates as quickly as prices were raised last year.
Russia cut off the gas supply for several days in January this year, prompting fears that the development would increase wholesale costs.
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