Gas firms fail to pass price cuts

Consumers are being denied the benefits of a sudden collapse in the price of natural gas that is bringing a profits surge to gas utilities.

Margins in the gas industry are reaching record levels, experts claim, because of an emerging glut of fuel in the wholesale markets caused by the recession and new supplies.

But utilities are failing to pass on the benefit of a fall, by two thirds, in the wholesale price. The gap between the retail price and the wholesale cost is expected to boost the profits of the residential business of British Gas by more than 50 per cent this year.

Wholesale prices are tumbling and are expected to fall further, says Niall Trimble, director of The Energy Contract Company, a gas consultancy.
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