Reuters: UK could overpay for energy if shale ignored - report

British households are in danger of overpaying for their energy bills as government policy has ignored the potential emergence of cheap shale gas, a report by the Policy Exchange think-tank said on Friday.

Given recent developments in the shale gas sector, which have sharply reduced household energy bills in the United States, the report said gas prices could also fall in Britain.

"No one can predict future gas prices, but shale gas developments suggest prices may be lower than previously assumed."

Citing figures published by Department of Energy and Climate Change, Policy Exchange said Britain could end up overpaying for electricity by 22 billion pounds ($34.4 billion) if future gas prices fell.

The government suspended shale drilling activity by Cuadrilla Resources last year after exploration work triggered small earthquakes near Blackpool in northwest England, and it is reviewing the incident.  MORE