Energy supplier Scottish Southern Energy said it will increase its prices for domestic electricity and gas customers on 1^st April 2008.  Prices for electricity customers will increase by 14.2% on average and prices for gas customers will increase by 15.8%.  Energy supply in the is changing dramatically, with companies having to operate in volatile markets, which reflect depletion of North Sea oil and gas fields, soaring global demand for all types of energy and over $100 a barrel for oil. Wholesale energy prices have been stubbornly high,” said energy supply director Alistair Phillips-Davies.  “You cannot resist indefinitely the impact of these issues and I am sorry that all of this has culminated in the price rises we are announcing today,” he added.  Scottish and Southern are the last company to increase prices with British Gas increasing their standard tariffs on the 18^th January and Npower raising its pricing book on the 5^th January. 

The 13th March saw oil prices reach a new record in the seventh sucessive day of trading as prices touched $111 a barrel before easing off to close at just over $110.  OPEC is presently refusing to increase output as it is expected that the slowdown in the US economy will reduce the US's oil demands over the coming year.  US inventories also showed an increase of 6.2M barrels which was significantly more than expected.

At the end of February the energy regulator Ofgem fined National Grid £41.6M for breaches of competition law that has restricted the development of competition in the domestic gas meter market.  Ofgem’s Chairman, Sir John Mogg, said: “Ofgem has imposed a substantial fine on National Grid for a serious breach of competition law. National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers with Sir John Mogg adding “The abuse has prevented suppliers from contracting with other companies for cheaper metering deals and could discourage suppliers from installing smart meters.”.