APPENDIX 1
CORRESPONDENCE BETWEEN THE COMMITTEE AND
ENERGY COMPANIES OVER RETAIL PRICES
Letter from the Chairman of the Trade
and Industry Committee sent to the six major energy suppliers
You are doubtless aware that the Trade and Industry
Committee has had a longstanding interest in the effect of the
wholesale gas price increases on the retail cost of gas and electricity
to UK businesses and vulnerable domestic customers. We last reported
on this subject in December 2005—since when, there have
been further sharp increases in retail energy prices.
We will shortly complete our inquiry into UK
dependence on gas and coal imports, part of our wider-ranging
look at the Government's Energy Review. Given the fact that this
will coincide with the annual reappraisal of prospects for both
gas delivery over the winter and prices over the next year or
so, the Committee would like to invite you to comment on the price
increases since December 2005 and to give your assessment of how
gas wholesale prices are likely to move over the next year and
the prospect for decreases in retail prices to both I&C and
domestic customers.
We shall take oral evidence from the Energy
Minister on 10 October, and this issue is certain to feature in
that meeting. It would therefore be very helpful to receive any
comments you may wish to make by the end of this month.
19 September 2006
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