High Gas Prices Could Last Two Years, Centrica CEO Warns
Centrica chief executive Chris O’Shea has warned consumers that the energy crisis could last for up to two years.
“The market suggests the high gas prices will be here for the next 18 months to two years,” O’Shea told the BBC, going on to explain that high demand for gas was in part being driven by society’s shift away from coal and oil.
“As we move towards net zero, gas is a big transition fuel,” O’Shea said. “And so as you turn off coal-fired power stations in other countries, there isn’t an abundance of gas that you can just turn on quickly.”
O’Shea’s warning comes after industry leaders attached the label of “flimsy sticking plaster” to a taxpayer-backed support package for energy-intensive businesses affected by surging gas prices.
Business Secretary Kwasi Kwarteng is developing a plan for state loans to businesses threatened with closure over the winter, reportedly backed by Prime Minister Boris Johnson. This comes despite the Treasury denying the Government has any plans to take action.