“Energy prices are likely to remain at historically high levels, and in fact increase as non-commodity costs rise ever upwards” that is the view of British Gas Managing Director Phil Bentley. This gloomy outlook isn’t unexpected as the facts of diminishing fossil fuels, possible blackouts and increasing demand paints a poor picture of the future without renewable technology. “There’s a grim predictability about Britain’s energy suppliers,” independent watchdog Consumer Focus said today in an e-mailed statement. “In spite of increased margins and lower wholesale gas prices, there is the inevitable talk of higher domestic bills.” Meanwhile Centrica Plc and Scottish Power Ltd are among U.K. energy suppliers studying possible price increases for households next year as higher costs counter a decline in wholesale market rates.
“There are no immediate signals that would indicate a fall in retail prices for this winter,” Nick Horler, the chief executive officer of Scottish Power, said in a letter to the U.K. energy regulator Ofgem published today. There are “risks of an increase next year.”
Source: Bloomberg.com (hyperlink to http://www.bloomberg.com/apps/news?pid=20601102&sid=aejoMrjc3bvk)
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