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Government Must Rule Out Gazprom Takeover Of British Gas On "Exceptional Public Interest" Ground Says GMB
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Date: 08 February 2006
Government urged to use blocking powers under the 2003 Enterprise Act
Commenting on reports – see note 1 – that Russian state owned energy supplier Gazprom was analyzing and investigating British Gas with an eye to a takeover Paul Kenny Acting General Secretaryof GMB – the main union in the energy sector – called on the UK Government to use it’s powers – see note 2- to stop the takeover.
Paul Kenny said “GMB is calling on the UKto say that this takeover will not be allowed. The Government has powers under the 2003 Enterprise Act to block mergers where there is an “exceptional public interest”. There is no way the British public would tolerate the ownership and control of British Gas being allowed to pass into the hands of those who recently switched the supplies to Ukraine and Georgia.
Since privatization the UK Government has followed a “hands off” energy policy. The consequent lack of any central planning or controls leaves UK consumers totally at the mercy of global forces. With consumers currently being softened up for huge price rises in gas and electricity prices the government is nowhere. GMB considers that energy is too important to be regulated by a quango. The Government itself must be the regulator and be accountable to Parliament for that role.
The UK Government needs to take the first step in this direction by ruling out the takeover of British Gas by Gasprom.
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Contact: Steve Pryle, GMB Press Officer on 07921 289880 or Gary Smith, GMB National Officer, Energy & Utilities on 07710 618909
Notes to Editors
Note 1 The prospects of a merger were first raised in the Guardian in January in 2006 when the deputy chairman of Gazprom, Alexander Medvedev, told the paper that he was looking closely at
various UK firms with an eye to acquisition. The Guardian subsequently reported that on Friday 3rd February Mr Shkuta went further when he was quoted by Reuters as saying: "As far as acquisitions go, the acquisition of the company Centrica in Britain is possible. This question is currently being analysed and investigated. A decision has not been taken." The Guardian also reported that a spokeswoman for Gazprom initially said the comments, carried by both the local Interfax and Reuters, were made during a conference call with investors. She later claimed Mr Shkuta had been misquoted but declined to say what he had really said.
Note 2 Under the 2003 Enterprise Act Government can intervene in mergers if there is an "exceptional public interest" to stop a possible takeover.
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