World gas prices surge
Business Daily
BBC
4.4 • 816 Ratings
🗓️ 21 September 2021
⏱️ 17 minutes
🧾️ Download transcript
Summary
Today small energy firms among those struggling to stay afloat as world gas prices spiral. Ed Butler hears from Peter McGirr, who runs Green energy, a UK gas and electricity firm supplying about a quarter of a million households. Higher energy prices could lead to all types of additional business challenges. Sven Holester is the Norwegian President and CEO of Yara, Europe's second largest producer of commercial fertiliser. He says the spike in energy prices has already affected his firm's production. The cost of higher gas is affecting food prices, fertiliser, even abattoirs. But is it all Russia's fault? We ask Dieter Helm, professor of economic policy at the University of Oxford.
Producer: Benjie Guy
(Picture: The Slavyanskaya compressor station, the starting point of the Nord Stream 2 offshore natural gas pipeline.)
Transcript
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| 0:00.0 | Hi there, I'm Ed Butler. Welcome to Business Daily from the BBC. Today, small energy firms, among those struggling to stay afloat, as world gas prices spiral. |
| 0:12.5 | Can they blame the market, though? Shouldn't they have saved for a rainy day? |
| 0:17.3 | It's rained several times through the past two years with the pandemic, with individual |
| 0:21.6 | black swan events. And, you know, we've boughted the salon well when it's rained. You know, |
| 0:25.3 | we've put our brolleys up and we've stayed dry. What we've had here, it's not a rainy day. It's a |
| 0:30.1 | tsunami. Yes, the cost of higher gas is affecting food prices, fertilizer, even abattoirs. |
| 0:36.7 | But is it all, in in fact Russia's fault? |
| 0:39.3 | Well, this crisis doesn't need to really exist in the first place. It could be over really |
| 0:43.7 | quickly, but it would take Russia to act. Pipeline politics. That's Business Daily from the BBC. |
| 0:51.9 | Peter McGur sounds like an exasperated man. |
| 0:56.1 | I'm disappointed, disappointed, and the business secretary has not reached out. |
| 1:00.2 | We've been in crisis as an energy sector with the prices rising, you know, |
| 1:03.6 | if not for weeks, for months in that sense, and nothing has been done. |
| 1:06.9 | And only when there was going to be no fit on the table have they thought, |
| 1:10.1 | oh, hold on a sec, |
| 1:11.3 | we should maybe step in and do something. |
| 1:13.1 | Peter runs a firm called Green Energy. |
| 1:15.6 | It's a UK gas and electricity company supplying about a quarter of a million British households. |
| 1:20.8 | It's one of dozens of energy firms now looking at potential collapse, with a global gas price spiraling, but with its income from |
| 1:29.5 | customers fixed by tariffs and government price caps. |
| 1:33.4 | We still have cash in the bank, but unfortunately we know that we will hit an iceberg, you know, |
| 1:38.9 | in the coming months. And I believe that most small suppliers or medium-city supplies |
... |
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