Study calls for cooperation on UK security of supply

London (Platts)--13Jun2005

The business world must work with the UK government on the issue of security
of energy supplies, according to a new report by consultants Ernst and Young.
There are growing concerns about security of supply, as the UK becomes an
importer of increasing amounts of gas. The consultants note that if there were
ever an interruption of energy supplies in the future, the energy industry
could attract "much criticism," especially given its current highly
consolidated structure. "There will be a search for the guilty and an industry
with oligopolistic tendencies is likely to be a strong candidate in the eyes
of the public and politicians, even if largely or completely innocent," the
report says. In the wake of such an event, attempts might be made to penalize
the industry by breaking up some of the energy giants. Industry should
therefore be proactive in joining with the government on security of supply
work, Ernst and Young recommends.

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.