Managers at a UK glass firm are lobbying the government for action to limit rises in the price of gas. A delegation from Rockware Glass in South Yorkshire visited the Department of Trade and Industry …
Managers at a UK glass firm are lobbying the government for action to limit rises in the price of gas. A delegation from Rockware Glass in South Yorkshire visited the Department of Trade and Industry to ask European competition officials to stop gas suppliers from taking unfair advantage of Britain“s de-regulated energy market while industries in other EU states enjoy subsidies. Another South Yorkshire glass firm, Rotherham-based Beatson Clark was forced to close a plant in Kent and sub-contract work to the Czech Republic as a direct result of gas price rises. “Unless gas prices come back into kilter, I do not think operating in heavy industry in the UK will be sustainable,” warned Beatson Clark Managing Director Alan Jones. He wants the government to help heavy industry by cutting the Climate Change Levy and by easing environmental restrictions. Mr. Jones also argues for an increase in UK gas storage capacity; at the start of November 2005 the UK was selling gas to Germany and France at GBP 0.30 a therm because it did not have the capacity to store it. Gas prices shot up to GBP 1.70 a therm by the end of the month, when the UK was forced to try to buy back the gas, by then stored in superior French and German facilities, he said. Adding insult to injury, the French and Germans refused to sell the gas, while providing cross-subisidies to their own heavy industry. UK firms following government advice to move from long to short-term contracts suffered a “double whammy”. The advice was based on a belief that companies would realise benefits from a de-regulated energy supply industry. But the failure to deregulate in other EU states mean the opposite has happened.