Household bills 'likely to rise sharply' as Britain comes 'd

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Household bills 'likely to rise sharply' as Britain comes 'dangerously' near energy shortage

Household bills are likely to rise sharply within five years as Britain will come "dangerously" near to an energy shortage, the chief executive of Ofgem has said.


Alistair Buchanan, the boss of Ofgem, has warned that Britain faces a "rollercoaster" fall in energy supplies that will lead to a rise in consumer bills.

Alistair Buchanan, the outgoing head of the regulator, would not say how much bills will rise but pointed out that gas prices are 60 per cent higher in countries such as Japan, which is reliant on the fuel but has no supply of its own.
He also predicted there will be a "near-crisis" between 2015 and 2018, as Britain has to replace its old coal stations with new forms of electricity supply.
Speaking to BBC Radio Four's Today programme, he said there would be a "double squeeze" on both prices and availability of energy at around this time. The UK will have to use more foreign gas to keep the lights on, because many coal stations have to close down under EU pollution laws. At the same time, global gas prices are expected to be be high.
Mr Buchanan said the financial crisis is largely to blame for the squeeze on energy supplies. This is because companies have been less keen to invest in costly new power stations such as nuclear plants and "clean coal" technology, leaving Britain more dependent on expensive gas.
“No new nuclear, no new clean coal, no new carbon capture this side of 2020," he said. "So we’ll lean on gas and gas will account for about 60 per cent of our power station needs instead of 30 per cent as it does today.

"And in order to get hold of that gas we’re going to have to go shopping around the world. And just at the time that we’re tight on power stations, the world is going to go tight on energy gas prices. So you’ve got a double squeeze.”
The energy boss said it is very important for the Government to persuade people to use less energy.
"We simply know what the dynamics are at the moment, and that leads us to be very concerned about this double squeeze in 2015 to 2018," he said.
"Now what the Government is doing is setting in place, through it’s energy bill, the promotion of gas-fired plants, so they’re acting on the gas-fired side, but their also putting a huge promotion and push onto energy efficiency, which is where all of listeners and all consumers can get involved, in looking at how they take advantage of the energy efficiency promotions from government, particularly for the vulnerable customers."

http://www.telegraph.co.uk/finance/news ... rtage.html

[Malogg Profile]

Energy Bills ‘Set To Rise’ Ofgem Warns



Britain’s fossil fuel energy supplies are on a “rollercoaster” and heading “downhill fast”, according to the head of industry regulator Ofgem.

Chief executive Alistair Buchanan issued the stark warning to consumers and businesses to prepare for higher prices as power plants close, foreign gas supplies shrink and increasing demand tightens the British energy market.

Mr Buchanan, writing in the Daily Telegraph, said: “We have to face the likelihood that avoiding power shortages will also carry a price.

“If you can imagine a ride on a rollercoaster at a fairground, then this winter we are at the top of the circuit and we head downhill – fast.

“Within three years we will see reserve margin of generation fall from below 14% to below 5% – that is uncomfortably tight.”

Mr Buchanan also said that in addition to o new nuclear or so-called clean coal increase, there would be no new “carbon capture” before 2020.

As a result gas will increase as an energy source for power stations from 30% now up to a possible 70% the next seven years.

He said Ofgem would not let companies take advantage of consumers.

“Just when we need more gas, would demand for gas is set to rise while our own supplies are predicted to fall by another 25% by 2020,” Mr Buchanan explained.

The Government said it was acting to prevent any possible “looming energy gap”.

But a spokesman for the Department of Energy and Climate Change (DECC) said: “Our energy system faces significant challenges over coming years, including the closure of around one-fifth of our ageing power stations.

“So as Ofgem highlights, we cannot afford to be complacent and may face a looming energy gap.

“The reforms we are making to the electricity market through the Energy Bill and through our gas generation strategy are aimed at plugging this gap in order to keep the lights on.

The DECC spokesman added: “We have legislated to introduce a capacity market that will help guard against blackouts and ensure there is sufficient supply when margins get tight.

“We are opening up the electricity market to incentivise a record £110bn of private sector investment in new clean power generation – in renewables, new gas, nuclear and carbon capture and storage.

“We can’t put all our eggs in one basket, we need a diverse energy mix – this is the best solution to guard against high price of wholesale gas which drives up consumer bills.”


http://politicsuk.eu/archives/16058

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britian is already crippled