Meanwhile nearer to home, Centrica last week announced tough times ahead for the industry and customers alike as the rise in wholesale gas and electricity prices continues to bite. It reported a dip in profits on gas and power sales in the residential sector in the UK and warned it would closely monitor fuel bills in light of the wholesale situation. Between you and me, that sounds very much like a prediction for higher fuel bills this winter!

On 4^th December in this blog I wrote about the continued wrangling over the USA Energy Bill (‘Battle Continues over USA Energy Bill……….’). It was hoped it would include the first meaningful increase in fuel efficiency standards for vehicles in the US for decades and a boost in production of biofuels. However, I was disappointed to read on Forbes.com that the Bill was blocked by the Senate last Thursday. It seems the politicians, law-makers and energy industry just can’t agree on a final outline and the Bill is being whittled down to such a degree that one wonders if by the time it gets to President Bush’s office for signature it will be worth having at all?  It seems there is strong opposition to a tax package favouring investment in energy efficiency but coming down heavily on the oil industry. To bring the Bill to a vote Democrats were forced to drop a provision that required utilities to obtain at least 15% of their electricity from renewable sources such as wind and solar power. The Bill now goes to a third reading – albeit watered down – hopefully to be passed before the end of 2007.