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Energy boss warns higher bills to stay

BBC . Oslo
17 Jan 2023 00:00:00 | Update: 17 Jan 2023 00:20:13
Energy boss warns higher bills to stay

The boss of Norwegian energy giant Equinor has said he does not expect gas and electricity bills to return to the levels they were before Covid.

Anders Opedal told the BBC the transition from fossil fuels towards less damaging sources of energy meant costs would remain high.

Mr Opedal also said that windfall taxes on energy firms were affecting investment in projects in the UK.

Energy companies have reported record profits because of higher gas prices.

Equinor, which makes most of its money producing oil and gas, is one of Europe’s biggest energy companies, with operations in 36 countries around the world including the UK.

In its most recent financial results, it reported pre-tax profits of $24.3bn (£19.8bn) between July and September compared to $9.7bn in the same period the year before.

Wholesale prices rose as Covid restrictions began to ease but soared higher after Russia invaded Ukraine and countries targeted the Kremlin with sanctions.

In recent weeks, in part due to warmer than usual weather across Europe, gas prices have returned to where they were before the Russian invasion of Ukraine.

However, gas and electricity bills for households and businesses remain elevated and are squeezing living costs for many.

Mr Opedal said it was doubtful that gas and electricity bills would return to a time when the typical UK household was paying around £1,300 a year. The typical annual bill for homes is currently around £2,500 which includes help from the UK government.

Mr Opedal said there is “a kind of re-wiring of the whole energy system in Europe particularly after the gas from Russia was taken away”. He said huge investment in renewables was needed, including using more hydrogen for example.

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