For the last few weeks the gas headlines have belonged to Sir Digby Jones of the CBI who has been warning that Britain faces the prospect of a 3-day week. The debate widened yesterday, with the government saying gas prices in the UK are amongst the lowest in Europe and that there will be no switch-off. But others warned the opposite, with Martin Temple, director-general of the Engineering Employers Federation saying the government was “in denial,” USwitch saying that gas prices were 44% cheaper in Latvia, while elsewhere it was argued that the high prices of gas in the UK would affect our exports.
On the government’s side, Alan Johnson, Secretary of State for Trade and Industry said “This is a winter when myself and the Energy Minister will be getting up every morning and if there is a frost we will worry. In future years we will not be so worried…Those that predicted the lights would go out this winter unnecessarily worried some very vulnerable and elderly people and that is not going to happen under any scenario whatsoever.”
The Energy Minister Malcolm Wicks was more bullish. He said the UK was “awash” with gas and talk of spot gas prices “was irrational.” Then Mr Wicks went into the politician-mode and speaking factually - but at the same time missing the point - said “The facts are that so far this winter there have been no gas shortages and supply and demand have remained in balance.” We say he misses the point simply because the troublesome period is ahead of us, and it really is irrelevant to talk about this winter so far - which actually seems to be about a week old.
On the other side, Mr Temple from the EEF had said of government statements, “Far from having the cheapest energy prices in the EU, UK companies are facing the highest gas prices. These remarks smack of complacency and we are now at the stage where we can only conclude that government is in denial over this issue and it is industry which is now paying the price.”
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