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Fears grew today that consumers will be hit with a fresh round of hikes to their fuel bills this winter after energy regulator Ofgem gave warning that gas supplies to Britain could be squeezed over the coming months.
With the UK becoming increasingly dependent on imported gas, the Department for Trade and Industry also said there was a "compelling" case for speeding up planning decisions on building new storage facilities in Britain, capable of importing and maintaining the fuel.
The DTi, which today set up a Business Energy Forum to be chaired by energy minister Malcolm Wicks, said it wanted to encourage local town planners to consider the national interest when deciding whether to approve new schemes.
Alastair Darling, the secretary of state for trade and industry, said; "Supplies of gas were maintained by the market throughout the past winter, there were no power cuts, the lights remained on. But this is cold comfort, not least to energy-intensive businesses and low-income househoulds who have faced price hikes."
Ofgem, as it began an in-depth consultation exercise taking in industry and the energy markets, said it had been told by National Grid that gas supplies may be "tighter" during the winter season.
The regulator pointed to wholesale gas prices being higher than last winter as a result of uncertainty over supplies, amid concern about whether Rough, Britain's largest gas storage facility, will be filled again in time for the beginning of the colder period.
Rough's owner, Centrica Storage, was forced to close the facility - which accounts for more than 80 per cent of Britain's gas storage - following a fire in February. It hopes to have Rough full again by the beginning of June.
But with prices soaring on the wholesale markets amid continued uncertainty over the outlook for supply, Alistair Buchanan, Ofgem's chief executive, urged gas importers in Europe and elsewhere to provide more details of any expected shortages. He said the response from gas-fired power stations and industry would be "crucial".
"While there is a possibility that supplies will increase if the new import projects are built on time, Ofgem believes that industry should adopt a cautious approach, as there is no room for complacency," Mr Buchanan said.
"Lack of transparent information about gas supplies and storage from Europe and elsewhere in the world remains a significant problem. This makes it very difficult to predict the level of gas imports into Britain."
Mr Buchanan added that it was "vital" that industry and the energy markets play an active part in National Grid's consultation period on winter energy - expected to be concluded in September - in order to minimise both shortages and potential price increases.
The UK imports gas from a growing number of countries, including continental Europe, Russia and Norway.
The British consumer has already been hit by one big round of price rises earlier in the year, with companies such as British Gas bumping up prices by up to 25 per cent.
But concern over potential higher fuel bills also comes as suppliers across the continent come under the microscope over potentially anticompetitive practices that restrict supplies to Britain and could be pushing up gas costs by as much as £10 billion.
The European Union has already threatened to clampdown on any practices that impede competition.
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