UK wholesale gas prices for this winter are the highest in the world & are set to rise further, increasing the likelihood that British energy groups will be forced to increase bills further. Wholesale gas to be delivered in January is trading at more than 80p/therm, which is about 25% higher than prices on the Continent & in the US & a quarter above prices in the UK for the same period this year. New gas pipelines from Norway & Holland, due to become operational this winter, will ease the pressure on prices, many analysts fear the new supplies will arrive too late to make a significant difference this winter. "Until these projects are delivered, there is a lot of anxiety premium in forward wholesale gas prices," said J.Nicholson, director of the Energy Intensive Users Group. The shortfall has been accentuated by falling gas deliveries from the North Sea & the failure of the interconnector - an existing gas pipeline between Belgium and the UK - to transmit gas at maximum capacity throughout last winter. Recently, British Gas, owned by Centrica, said it was increasing gas prices from September by 12.4% and electricity prices by 9.4%. This is the second rise from the UK's largest gas supplier this year.
