Record gas price threatens new rises in bills

Wholesale gas prices soared to a new record today as expectations mounted that power suppliers could hit UK households with a fresh round of price increases later this month. UK forward gas prices for delivery in January 2009 touched a high of £1.13 per therm earlier today, up from 50p per therm a year ago. The price of gas is closely linked to oil which yesterday rose to a new record of nearly $144 a barrel. Andrew Horstead, energy analyst at Utilyx, said gas prices were also being driven higher by concerns about a shortage of supplies from the North Sea this winter. Industry sources say the continued rally in gas prices was fuelling expectations that some of Britain’s big six power suppliers could implement a fresh round of domestic price increases as soon as this month. Centrica-owner British Gas, which has the largest... [read full story]