Centrica, the owner of British Gas, has issued a warning that the surging gas prices could lead to increased household bills and potentially force energy-intensive businesses in the UK and Europe to reduce their activity during the winter.
As gas demand typically peaks in the winter, concerns have arisen due to lower gas storage replenishment rates throughout the summer. Centrica highlights that a prolonged or particularly cold winter would drive prices even higher, leading to potential production cuts by energy-intensive companies.
While some analysts believe that such a scenario would only materialize during the peak of winter demand, the Department of Business, Energy, and Industrial Strategy (BEIS) has acknowledged the UK’s diverse gas supply sources but also emphasized the importance of building a robust domestic renewable energy sector to counterbalance the country’s exposure to volatile global gas prices. While the daily demand for gas can be met, the limited gas storage facilities pose a significant risk, particularly in the event of an extended period of cold weather.
In addition to concerns about household bills, large manufacturers and energy-intensive industries have also expressed worries about the impact of high gas prices on electricity price
