Concerns over domestic and international gas prices – exacerbated by this week’s dispute over Russia’s withdrawal of supply to Ukraine – along with company take-overs and nuclear energy – are likely to be the preoccupations of UK utilities executives in 2006.

UK wholesale gas prices shot up in 2005, making it more expensive to generate electricity and supply retail gas customers. This may have caused problems for companies that are heavy energy users, but it also led to a revival in the fortunes of companies owning coal-fired power stations, such as Drax, which suddenly became more competitive.