Gas prices hit record high as industry calls for emergency help

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Surging wholesale energy prices add to inflation pressures as firms call for emergency help

are blamed for the increase in gas and electricity prices - which is a Europe-wide phenomenon - including lower production levels, higher demand for liquefied natural gas in Asia, and a lack of wind to power the turbines upon which the grid increasingly lies.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said electricity and gas futures prices now pointed to Ofgem having to increase its default energy price tariff by 33% in April. But it was set at its latest level back in August and the surge in wholesale prices since then looks certain to mean it will go up again when it is next reviewed in February."Will it be tenable for the government simply to do nothing?"An industry body representing energy intensive sectors including steel, chemicals and fertilisers called for more help from the government to ensure they could continue to operate this winter.

 

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