UK users face 50% hike in power prices: analysts

London (Platts)--6Sep2004

UK commercial electricity customers face price increases of up to 50% as they
renew their long-term contracts, energy procurement analysts Energyquote said
Monday. "Surging wholesale prices continue to make the market a torrid one for
customers," Energyquote said. 

Many UK customers renegotiate their contracts
over the summer ahead of the traditional October contract round. Energyquote
said prices had abated since early July but had then recovered, with fixed
price offer levels at their highest this year. Typical delivered end-user
prices currently range from 3.78p/kWh for large industrial users to 6.67p/kWh
for small commercial customers. But Energyquote said many customers were
struggling to even get quotes. "Exceptional price volatility has deterred both
customers and suppliers from participating fully in the market in recent days.
Some significant volumes remain to be renewed for Oct 1 and pressure on these
customers is increasing," Energyquote said.

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