§ Jonathan ShawTo ask the Secretary of State for Trade and Industry what assessment she has made of the relationship between changes in wholesale gas prices and oil prices. [189484]
§ Mr. Mike O'BrienIn Continental Europe, where the energy markets are not fully competitive, gas prices are contractually linked to oil prices. In comparison the UK has gas-to-gas competition. However, due to arbitrage across the interconnector, we are also importing Continental European prices. Our analysis suggests that though the link between oil and gas prices exists, it is complex and dynamic.
1851WOfgem launched a probe into the price movements of last autumn and more recently into forward gas prices. We await the conclusions of this probe.