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[February 2002]
British Ceramic Industry Pushes Case for Improvements in the Gas Supply Market
The British Ceramic Confederation (BCC) has submitted a comprehensive response to the British Government's recently published Consultative Document on the Gas Supply Market.Manufacturers of ceramics being intensive users of energy in the firing of their products, have a vital interest in gas prices and possible improvements to market efficiency. The ceramic industry is keenly aware, says the BCC, of the lack of liberalisation in the EU which is distorting gas prices in the UK and is pressing the UK Government and the Commission to implement related European Directives with immediate effect.
BCC argues that there is evidence of insufficient competition between major suppliers and between major and small suppliers, and that regulation appears to have impaired rather than improved competition. The extent of apparent gaming, skewing or manipulation suggests to industry that a radical reappraisal is required.
In its submission, BCC states that further action is required to improve information flows as a prerequisite for a free, competitive and transparent market. It has drawn attention to the way in which spot market prices are used to create distortion and blunt competition. The BCC is calling on the Government to ensure greater competition by introducing more specific regulation if and when competition is insufficient, and to create the conditions necessary to encourage longer term commercial contracts. In addition to the formal response, BCC will be making its case to Government through its regular briefing meetings with Ministers, MPs and senior civil servants.
ENDS