British Gas: About Gas and Electricity

British Gas: About Gas and Electricity

As the largest domestic energy supplier in the UK, with over 11 million gas customers and 6 million electricity customers, British Gas works hard to provide all their clients with competitive energy prices.

Energy Prices and the Changing Global Economy

British Gas is aware that customers are concerned with rising energy costs. The higher rates charged to customers are a direct reflection of increasing costs for wholesale gas.

Over the past 4 years the cost of wholesale gas has risen by 266%
Wholesale gas prices have risen by 71% in the last 12 months

Compounding the situation is the fact;

The UK has become highly reliant on importing gas from other nations
By 2015 the UK will be importing 75% of the gas it consumes

What factors are creating this new market approach?

According to the European Commission the following factors are responsible for artificially inflating wholesale energy prices.

International gas prices are being altered by record oil prices and speculative concerns over the European energy market.
A shortfall in gas supplies entering the UK due to the lack of open access across energy markets

Our Changing Economy and You, the Customer

British Gas understands the costs associated with your home energy bill. Research by Global Insight found these market changes could cost UK consumers up to an additional £186 per household, per year.

Centrica and British Gas: Leading the UK to Protect Our Customers

Unless decisive action is taken, UK consumers will continue to pay premium prices. Centrica and British Gas understand that in order for wholesale and consumer prices to fall, an investment is needed to create new pipelines, new LNG facilities, and new forms of generation. Centrica has committed to the following investments:

An £18 billion investment into creating and bringing new gas supplies to the UK
Laying the foundation for new construction of pipelines from the Netherlands and Norway
Constructing a LNG terminal at Milford Haven

British Gas and Centrica Work Hard to Save You Money

These investments will mean more money in your pocket. You can rest easy knowing that Centrica and British Gas are working hard for your home and gas bill.

News

18 January 2008: Centrica Retail Price Statement

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