The business, energy and industrial strategy parliamentary committee heard evidence today from experts from within the gas industry about the increasingly high gas prices seen over the past month.
Emma Pinchbeck, chief executive officer for Energy UK, said: “We’re not just in a situation where we have regular market failure, where companies that in the traditional market win or lose. We’ve got companies that are very well run, that are well hedged, who are worried.”
Outlining some of the reasons behind the shock, Jonathan Brearley, chief executive officer for Ofgem, said: “Two thirds of all the gas that the UK uses has been added to the amount that we thought we would need in the market.”
“A marginal shift in a market this tight creates the kind of price spikes that we’re seeing.”