Newspaper Article

Brussels warns of clampdown on European energy giants

Michael Harrison Business Editor and Stephen Castle in Brussels

2006

Overview

The EU's hard-hitting stance opens up the possibility that big, vertically integrated energy companies on the Continent, such as Germany's E.ON, Gaz de France and Distrigas of Belgium, which transport and supply gas, may be forced to break themselves up. This could make it easier for companies to import gas into the UK and ease the pressure on UK prices, which have shot up in the winter months to levels far above those seen on the Continent. UK wholesale gas prices surged 40 per cent yesterday to 70p a therm, although this was blamed on a fire on the Bravo platform in the North Sea which forced Centrica to close down its Rough gas storage facility, which can supply about 10 per cent of the UK's peak demand. Centrica warned the additional cost for UK gas users this year could be pounds 10bn. Sir Roy Gardner, its chief executive, said: \"UK consumers are paying a very high price for the failure of member state governments to end the closed shop Europe's energy markets.\"

• Publisher: Independent Digital News & Media