§ 32. Mr. ShawTo ask the Secretary of State for Trade and Industry what assessment she has made of the impact of increased non-domestic gas prices upon UK manufacturing. [2066]
§ Ms HewittThe Government are very much aware that, despite the recent easing of wholesale gas prices, many manufacturing companies have seen a substantial increase in their gas bills over the past year. We consider that the main reason behind this price increase is arbitrage across the UK-Belgian interconnector with high oil related gas prices in Europe. This has been made worse by the lack of liberalisation in Europe and the consequent absence of competition between gas suppliers.
The Government are pressing a three-point strategy to address this issue—working for greater liberalisation in Europe, improving the GB market, and taking action against any anti-competitive behaviour.