Energy News

UK gas prices rise in Japan earthquake aftermath

Tuesday 15 March, 2011

By Becca Talbot - becca@consumerchoices.co.uk

British households could soon see their gas bills soar again, after energy experts warn that the Japanese earthquake has pushed up natural gas prices.

The nuclear crisis in Japan following the earthquake last Friday has sent natural gas prices to their highest level in more than two years, according to energy experts.

The nuclear crisis in Japan following the earthquake last Friday has sent natural gas prices to their highest level in more than two years, according to energy experts.

The earthquake and subsequent tsunami caused explosions at the Fukushima Daiichi nuclear plant, one of the largest power plants in the world, stopping production.

Other reactors were halted because of fears of further explosions and radiation leaks, however Japan is now looking for alternative energy supplies, as the country is expected to be left with gas shortages.

It is now feared that the imported gas that Britain relies on may be diverted to Japan, pushing the price of natural gas up to 64p a therm - a 7% increase since Friday.

Speaking to the Guardian, Adam Forsyth, analyst at Matrix Group, said: “If the price rises and is consistently at a high level then it has to come through to people’s gas bills eventually.”

Natural gas is now the highest it’s been since October 2008. Last month it was 57.8p per therm.