Ofgem warns of higher energy prices - Gas and electricity - News - Moneyfacts

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Ofgem warns of higher energy prices

Ofgem warns of higher energy prices

Category: Gas and electricity

Updated: 19/02/2013
First Published: 19/02/2013

MONEYFACTS ARCHIVE
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The owner of the energy watchdog, Ofgem, has claimed household energy bills could increase as a result of power shortages and the UK becoming more dependent on imported energy.

Alistair Buchanan warned that the closure of oil and coal power stations to meet Government environmental targets, despite high demand, could spell a 10% drop in energy capacity by April this year, and would stretch energy supplies even further.

Under the Energy Bill, the Government is aiming to review the UK' energy needs, by reforming the electrical energy market and supporting methods of renewable energy.

Mr Buchanan stated that whilst he fully supported the Government's targets, more focus was needed to guarantee effective results.

"We may well be able to rely on renewables, clean coal and nuclear, but the Government wants to ensure we can get to this vision in an orderly way," he said.

"No-one doubts that there is plenty of gas out there, but what is critical to Britain is how much will be available over the next five years and how much will we have to pay for it to ensure it comes here."

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