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Russian crisis could force up British gas bills, says minister
Nicholas Cecil, Chief Political Correspondent8 Jan 2009
GAS bills could rise in Britain if the row between Russia and Ukraine drags on, a Cabinet minister admitted today.
Energy Secretary Ed Miliband said Britain imports only two per cent of its gas from Russia.
But traders are starting to export gas through the interconnector to the Continent as they can get a better price in countries hit by Russia's halting of supplies to Europe via Ukraine.
Mr Miliband told BBC Radio 4's Today programme: "What we want to avoid is the risk that prices might go up in Britain or might not go down as quickly as they should because this dispute drags on.
"That's why we need to get it resolved."
He played down any immediate threat to British households, saying they should not be "alarmed" by any threat of shortages, and insisted that Britain still gets most of its gas from the North Sea.
But Conservatives demanded today that energy giants - which promised to cut bills as the cost of wholesale gas fell by about a third from last year's peak - be referred to the competition watchdog for failing to cut bills quickly enough.
They urged Mr Miliband to intervene amid fears that the cost of gas in the UK may be kept unfairly high because of the dispute between Ukraine and Russia.
Shadow energy secretary Greg Clark said: "In October Ed Miliband gave energy companies an ultimatum, warning that unless they dropped their prices within a month he would take urgent action. Three months later they have ignored his call."
Diverting supplies to the Continent will reignite worries that the buy-out of large sections of Britain's energy industry by foreign companies has left millions of customers here vulnerable to receiving a poorer service than in other EU countries.
EDF of France has been accused of raising prices in Britain faster than in France.
Meanwhile, Russia, Ukraine, and the European Union were today seeking to end the crisis.
Talks were due to take place in Moscow between Russia's state-controlled Gazprom gas company and Ukraine's Naftogaz.
Russia turned off the gas to Europe via Ukraine yesterday accusing Kiev of stealing supplies in transit. The row centres on unpaid bills.
So far seven EU countries - Austria, Greece, Hungary, Romania, the Czech Republic, Slovakia and Bulgaria - have reported a total stoppage of gas supplies.
Reader views (3)
Surely it won't? Energy prices have been dropping over the last year, although none of the savings were passed on to the consumer, so even if they do rise currently they'll only move back up to where they were beforehand thus no actual consumer rise is neccesary.
Sorry, did I say that out loud? I was daydreaming again.
- Bob, Cheam, 08/01/2009 14:20
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Every bloody winter!!
- Eddy, London, 08/01/2009 13:12
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Just what we needed ever higher energy bills...
- Peteo, London, NW1, 08/01/2009 11:04
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