British households should prepare for a rise in energy prices in the New Year because power companies on the Continent are hoarding gas. Consumer group Energywatch warns consumers will be hit despite there being plentiful reserves of gas that could be piped to the UK. It is not the first time that some of Europe’s energy giants have been accused of holding on to gas that could otherwise be exported to Britain for a profit. The concern about supply shortages comes despite the building of new infrastructure to increase import capacity. “The amount of gas available is greater than for many years, but there is market manipulation which is creating winter scarcity,” said Allan Asher, Energywatch chief executive. Last Monday, as cold weather hit Britain, the demand for gas from households and power generators rose to its highest since March 2006. Such was the strength of demand that importers like British Gas were paying suppliers 3p a therm more than was being paid on the Continent. But the key Interconnector pipeline supplying gas from Zeebrugge, Belgium, to Bacton, Norfolk, was operating at only 12 per cent capacity. “This [low capacity] would not happen if there was an open and transparent market throughout Europe,” Asher said. “But there isn’t, and as a result British consumers are about to be stuffed again.”

Telegraph