lets go green
Energy regulator Ofgem has warned that the UK faces a number of challenges to its power supplies over the next ten to fifteen years with existing power stations coming to the end of their lives and an increasing need to import gas via volatile global markets.
“These are big challenges. Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets,” said Ofgem chief executive Alistair Buchanan.
Ofgem believes that an investment of £200 million will be needed to maintain supplies at the current level for the future and warned that ‘there is a high likelihood of rising consumer bills’ in order to find that investment.
Customers could face increases in domestic energy bills of between 14 and 25 percent by 2020, while wholesale price spikes could lead to temporary increases in bills of up to 60 percent in the interim period, says Ofgem.
Ofgem will complete its report following consultations with the various energy suppliers and will forward proposals as to how the industry can meet the challenges in the new year.
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