Pilkington is to use oil rather than gas for its UK operations because of rising gas prices, according to a report in the Sunday Telegraph. The recent fall in temperatures has boosted the cost of natural gas, raising the day-ahead price from 0.36p/therm to 0.82p/ therm. David Workman, Director of British Glass, said his members were working at a disadvantage compared to their EU competitors. Gas prices for UK manufacturers are around 50% higher than for their rivals in Europe, & electricity is around 30% more expensive. With the UK Met Office forecasting a cold winter, industrial users are worried that their energy supplies could be disrupted in the event of severe weather. National Grid, which distributes gas throughout the country, has the right to cut off the gas of industrial users in order to ensure supplies to homes. Jeremy Nicholson, the director of the Energy Intensive Users Group, said the group was planning to write to the Government to ask for the setting up of some form of compensation system in case of such an event.
