UK consumers face hike in energy bills-Ofgem
By johnbscot. Filed in Climate Change, energy-saving |
Energy regulator Ofgem said on Friday the investment would be needed to pay for new power plants and other infrastructure.
“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,” Ofgem said, following a review of Britain’s energy supplies.
The regulator said 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. Ofgem said Britain faces a number of challenges to its gas and electricity supplies over the next ten to fifteen years including power stations nearing the ends 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.
Energy Secretary Ed Miliband said that Britain could balance the need to tackle climate change with energy security.
“The most important thing about Ofgem’s report this morning is that it emphasises the need to, as we are doing, get on with new nuclear power, new renewables, including wind which is unpopular with some people, and clean coal and we’re doing all of those things,” he told BBC Radio 4.
Miliband noted that the government planned to source 40 percent of its energy from low carbon by 2020.
“Most of that is home-grown energy and that helps us to stabilise gas imports rather than just increasing them,” he said.
Tags: energy, Nuclear, RED alert!, renewables
