Menu
09/10/2009
Ofgem Highlights Energy Challenges
Energy regulator Ofgem has today highlighted the challenges to Britain's gas and electricity supplies.
Ofgem has drawn up four energy scenarios to assess the energy security risks over the next 10-15 years. They reveal a range of potential risks to supplies when exposed to shocks.
Further, Ofgem identifies the need for investment of up to £200 billion in power plant and other infrastructure over the next ten years to secure both energy supplies and climate change targets.
The need for this investment arises at a time of volatile world energy prices and Britain's increasing dependence on gas imports.
Ofgem Chief Executive Alistair Buchanan said: "Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets. However, there is still time to act. Ofgem will be putting forward proposals in the New Year based on today's consultation to ensure that Britain’s energy industry can meet the challenges ahead."
Ofgem's four scenarios highlight a number of risks: Britain will face significant levels of gas imports, in particular for gas power plants to replace lost nuclear and coal-fired capacity. This increases our exposure to uncertainties in the global gas market, supply disruptions and potential price increases.
Significant changes in the way in which we generate and consume power may be needed to manage the variability associated with increasing reliance on wind power.
Given the massive levels of investment needed, there is a high likelihood of rising consumer bills, especially if oil and gas prices continue their underlying rise since 2003.
"These are big challenges. Consumers are already enduring high energy prices," said Mr Buchanan. "This is why we are consulting with consumer and environmental groups, the academic community and industry to ensure any policy proposals we make are grounded on the best evidence available. Early action can avoid hasty and expensive measures later."
(CD/GK)
Ofgem has drawn up four energy scenarios to assess the energy security risks over the next 10-15 years. They reveal a range of potential risks to supplies when exposed to shocks.
Further, Ofgem identifies the need for investment of up to £200 billion in power plant and other infrastructure over the next ten years to secure both energy supplies and climate change targets.
The need for this investment arises at a time of volatile world energy prices and Britain's increasing dependence on gas imports.
Ofgem Chief Executive Alistair Buchanan said: "Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets. However, there is still time to act. Ofgem will be putting forward proposals in the New Year based on today's consultation to ensure that Britain’s energy industry can meet the challenges ahead."
Ofgem's four scenarios highlight a number of risks: Britain will face significant levels of gas imports, in particular for gas power plants to replace lost nuclear and coal-fired capacity. This increases our exposure to uncertainties in the global gas market, supply disruptions and potential price increases.
Significant changes in the way in which we generate and consume power may be needed to manage the variability associated with increasing reliance on wind power.
Given the massive levels of investment needed, there is a high likelihood of rising consumer bills, especially if oil and gas prices continue their underlying rise since 2003.
"These are big challenges. Consumers are already enduring high energy prices," said Mr Buchanan. "This is why we are consulting with consumer and environmental groups, the academic community and industry to ensure any policy proposals we make are grounded on the best evidence available. Early action can avoid hasty and expensive measures later."
(CD/GK)
Related UK National News Stories
Click here for the latest headlines.
24 September 2008
EDF To Takeover British Energy
The Government welcomed EDF's proposed £12.5 billion takeover offer for British Energy Group and the British Energy Board's recommendation of the offer to its shareholders. The Government has committed to accept the cash offer of 774p per share for its 36% stake held by the Nuclear Liabilities Fund (NLF), subject to certain conditions.
EDF To Takeover British Energy
The Government welcomed EDF's proposed £12.5 billion takeover offer for British Energy Group and the British Energy Board's recommendation of the offer to its shareholders. The Government has committed to accept the cash offer of 774p per share for its 36% stake held by the Nuclear Liabilities Fund (NLF), subject to certain conditions.
31 July 2008
Centrica Posts £1 Million In Profits - To Consumers Anger
British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
Centrica Posts £1 Million In Profits - To Consumers Anger
British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
10 April 2014
British Gas Business To Pay £5.6m Fine
Corporate customers are to be compensated by British Gas Bussiness for a series of failures that prevented them from getting cheaper bills or blocking firms to change to other suppliers. The regulator, Ofgem, said British Gas Business would pay a total penalty of £5.6m, with £800.000 of that sum in fines, on top of the £1.3m already paid to 1.
British Gas Business To Pay £5.6m Fine
Corporate customers are to be compensated by British Gas Bussiness for a series of failures that prevented them from getting cheaper bills or blocking firms to change to other suppliers. The regulator, Ofgem, said British Gas Business would pay a total penalty of £5.6m, with £800.000 of that sum in fines, on top of the £1.3m already paid to 1.
04 December 2014
British Gas To Pay £11.1m For Failing To Meet Environmental Obligations
An energy firm has been ordered to pay £11.1m to Ofgem to benefit vulnerable consumers. British Gas failed to meet its environmental obligations under the Community Energy Savings Programme (CESP) and Carbon Emissions Reduction Target (CERT) by the 2012 deadline, according to an Ofgem Investigation.
British Gas To Pay £11.1m For Failing To Meet Environmental Obligations
An energy firm has been ordered to pay £11.1m to Ofgem to benefit vulnerable consumers. British Gas failed to meet its environmental obligations under the Community Energy Savings Programme (CESP) and Carbon Emissions Reduction Target (CERT) by the 2012 deadline, according to an Ofgem Investigation.
22 February 2008
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
Ofgem To Investigate Energy Suppliers
Energy regulator Ofgem has launched an investigation into the markets in electricity and gas for households and small businesses. Ofgem's inquiry follows a series of inflation-busting price hikes announced recently by big energy firms. The regulator has no strong evidence of failure in the gas and electricity market.
-
Northern Ireland WeatherThis Evening and Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 7 °C.
