Energy prices will keep on rising - British Gas chief
Energy prices will keep on rising in the UK regardless of government intervention because the price of gas is increasing on international markets, the boss of British Gas has warned.
Speaking on the day an energy pricing summit meeting between the government, regulators and suppliers starts at Westminster, the firm's managing director Phil Bentley suggested the "inconvenient truth" is that energy prices will continue to creep up.
"We are importing 50 per cent of the gas that comes into Britain and we are having to compete for sources from the Middle East - Japan is importing huge amounts of gas on ships and that was gas that used to come into the UK market," he told the BBC.
"In my opinion unit prices will only go one way unless someone discovers huge amounts of gas and imports it into the UK. The international price for gas, I am afraid, is going up," Mr Bentley added.
His comments come as British Gas announced a new £100 million package of measures designed to reduce winter bills.
This includes a commitment not to raise energy prices this winter, a discount for low income customers, a free insulation offer and flexible payment plans.
British Gas added that it plans to communicate with all of its customers to ensure they are aware of the best deals available to them.
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