delusionofgrandeur

UK gas prices and by proxy, electricity prices could rise by 40% by this winter.

The rising wholesale cost of gas has been cited as the leading cause for the price inflation. The increase would see a approximately £400 increase in the average UK energy bill.

Electricity prices are likely to be on the increase as well because the government of the 1990s chose to provide Britain’s electricity through gas powered generation instead of nuclear and the current government gave us 11 years of almost total inaction on base-load energy generation before finally making a decision in the last 6 months to build new nuclear power stations.

Unfortunately, new nuclear power stations look to be years away still and although the UK is not supplied with Russian gas, Gazprom’s levering of gas prices affects the entire EU market and has a knock-on effect for the UK.

This entry was posted on Thursday, June 19th, 2008 at 1:29 pm and is filed under Economy, News, Politics.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.