Despite significant falls in the price of oil, wholesale gas and electricity prices have stayed close to record highs.
With North Sea production now falling, Britain imports half its gas requirements and continental gas prices are typically linked to oil prices with a lag of 6 months.
High demand for gas from the Asia-Pacific region means much liquified natural gas is being shipped there where prices are higher. This in turn drives up the price we pay in Europe.
Winter gas prices are expected to be in the 80p - 90p per therm region, down from highs of 100p but significantly more expensive than last winters 48p per therm.
Source: Financial Times