§ Mr. Bill O'BrienTo ask the Secretary of State for Trade and Industry if he will discuss with the suppliers of gas to industry measures to offset major price increases of gas in the near future, which will have an effect on manufacturing industry; and if he will make a statement. [135264]
§ Mrs. LiddellSince the spring, the wholesale price of gas has risen sharply and this has had an effect on many industrial and commercial customers, especially those who have contracts tied to the spot price. The main reason for this rise has been increased trade across the GB-Belgium interconnector reflecting high oil-related gas prices, particularly in north-west Europe.
The Government are concerned about this rise. Work is already in hand to boost liberalisation and competition in Europe and thus break the link between gas and oil prices which keeps European prices higher than would otherwise generally be the case. This is the most effective long-term means of ensuring the competitive gas prices industry seeks. However, it is likely to take some time.
Meanwhile, the Government are already in dialogue with participants in the industry about the gas price rise and this is being intensified. However, it is not the role of the Government to influence the prices charged by individual companies.