UK: Running Out of Gas

Britain is in danger of running out of gas. Yesterday, the National Grid that is responsible for Britain’s gas and electricity network, issued an unprecedented warning – called a “gas balancing alert” – warning that there was not enough gas to meet demand. Gas supplies to some businesses might have to be reduced. Not surprisingly, the move sent wholesale prices spiralling up fourfold.

But it is not just businesses that are suffering. Consumers have been hit by massive increases in gas prices recently. British Gas, which has 53% of the residential gas market, raised prices 22% from March 1. This followed a 14% increase in September last year and a 12% hike 12 months earlier. PowerGen, another major gas supplier, has just raised its gas prices for domestic customers by 24.4%.

Consumers are left wondering not so much whether it is time for an Oil Change, but a Gas Change. Maybe its time to switch to renewable energy.