Financial News
- 8 October 2012, 3:04
Watchdog Warns Of Power Shortages By 2015
A report by the energy regulator warns of the prospect of higher bills and the potential for power shortages because of falling spare capacity in electricity generation.
Ofgem's first Electricity Capacity Assessment for the Government forecasts a reduction in generation margins over the next four years, falling from 14% to 4% over the winter of 2015/16.
One reason for the deterioration is that coal-fired power stations are closing earlier than expected under EU environmental legislation, forcing the UK to import more gas to compensate and therefore risk costs rising.
The watchdog had already identified the major challenges in a previous report in 2009: that Britain faced an unprecedented combination of the global financial crisis, tough environmental targets and the closure of ageing power stations.
The latest study showed those risks, and the possibility of higher bills as a result of the constraints, had not gone away.
Ed Davey, Secretary of State for Energy and Climate Change, said he would respond to the report before the end of the year with the forthcoming Energy Bill aiming to secure supplies.
"Security of electricity supply is of critical importance to the health of the economy and the smooth functioning of our daily lives," he said.
Ofgem's Chief Executive, Alistair Buchanan said: "Ofgem is playing its part by helping Britain to attract nearly £30bn of network investment.
"Ofgem is also seeking sweeping reforms to the retail market to ensure a simpler, clearer and fairer energy market for consumers," he said.
what do you think?
Christopher Hodson
I new the EU had something to do with it lets get out of this fiasco
Eric Coster
let private industry sort it out, what did nationalisation do apart from, roads, rail, communications, hospitals, armed forces, education, post etc, privatise the lot quick and lets see how quick we get to the bottom. Will other Countries give us aid when we hit rock bottom.
gengisken1227
This problem has been coming down the track for 10 years - government is well aware power stations will be decommissioned starting 2015 with one quarter of the nuclear power stations requiring replacement from 2022. But of course it's easier to duck politically sensitive issues and wait to blame someone else. Buy carrots folks - and be prepared for 3rd world type black-outs.
john
The Russians wanted to sell gas direct to Great Britain but David Milliband blocked the deal, he probably didn't want to upset his yank masters.
shirley sutton
think you'll find power supply companies are owned by germans and other european countries not the yanks
Dave Harrison
Surprise surprise. This is what happens when those who believe the global warming scam get their way. We are to close an efficient cleaner coal fired power station at Didcot and the same day the chinese will open 2 more polluting stations. Do the maths and tell me how this will reduce these allegedly climate changing emissions.
Chris Carr
Have you notoiced the weather lately? Climate change is not a myth or a scam. I do howver agree that while we in the West (who have been so far responsible for most of the pollution) can't be expected to take the hit when China and India are now amongst the biggest polluters. World wide action is needed but won't happen as long as politicians and short termist thought holds sway.
Mikel roi
Dear Chris, throughout 3/4 of a century I have lived the climate has constantly changed. I remember dreadful Winters year on year, like 1947 and 1963 where everything froze for weeks. I remember previous drab, wet Summers and SNOW blizzards in June and August. I remember really hot Summers from the 1940's upto the sizzler in the South of 2006. The East coast floods, the Lynmouth disaster and many overseas flooding, hurricane, drought and blizzards too, down through the decades. Mankind does not control this planet's fragile atmospherics more than the natural relationships of planetary tilt, spin, oscillation and solar orbit, solar activity and allied to Moon gravitational pull etc. The most important "greenhouse effect" gas is just high altitude water vapour. But the whole system is so vast and complex and CO2 is estimated to be just 1/400th of one percent of the whole atmospheric gas mix. CO2 is also consumed by plant life and is present in most living things, it is not a pollutant and it has only been proven to have greatly increased in the past - AFTER global warming had been accelerating some time. There is no known natural temperature for our planet. Just be thankfull we are not heading into a global ice age!
Chris Carr
I am well aware, as a historian, that the planet's climate has changed on numerous occasions. I also conceed that the current period is probably one of the earth's natural wobbles but it is happening faster than ever before. We are having an affect. Even if we aren't we are using up non renewable resources at a cataclysmic rate, foir instance the fab for helium filled balloons means world reserves are critically low. We have to change the way we consume those resources or there will be nothing left for our grandchildren. Simply arguing that it is a very big ecosystem and we are too small to change it is wrong. Once we were too small now thee are so many of us that we have upset the balance.
Brian Holmes
Whatever the cause, it is clear that the UK's contribution to world pollution is paltry and so it is extremely irresponsible of our unpatriotic leaders to place the future of this nation in jeopardy for the sake of appeasing demands by foreign, competing, countries in the EU and elsewhere.
davenlesley
Brian. Absolutely spot on sunshine. How many times have we heard politicians tell us that we must not follow others we must lead by example. Meanwhile as we burden our industry with carbon capturing schemes etc the Chinese are P ing themselves laughing at this self imposed uncompetitiveness
shirley sutton
Bound to happen when they privatised it all sold to foreigners who only want to take out money not invest it
davenlesley
Shirley Privatisation has got nothing to do with the lack of generating capacity. That was down to stupid politicians trying to outdo each other with their green credentials and postponing decisions which should have been taken years ago..
Windows Live User
If it's going to affect us badly then we got to ignore EU environmental legislation and keep warm and lit Silly when legislation is going to make us suffer instead of doing us good.
Mikel roi
Silly? It's downright ludicrous! The EU has been crippling and taking over this country for far too long. Most of our young whipper snapper politicians have lost the plot of who they are working for and who pays their basic salary and pensions. (Some don't even know anything about their own nation's history or music!) We are a floating Island of energy, coal, and we by now should have the brains to make far better and safer use of it. Getting more energy per tonne than ever before - while re-working emissions. Why do we grovel to these EU dictators, handing them control over us?
davenlesley
France is covered with nuclear power stations so they aren't bothered. It is only the stupid British who take any notice and start putting up windmills.
Name witheld
This comment has been removed for violations of our Terms and Conditions.
Chris Carr
by burning witches???
Mikel roi
We could always make desk workers, MP's and Ministers, etc., pedal dynamos to create extra power supplies for the national grid - while keeping them fitter and cutting obesity at the same time! This common sense proposal would also save on energy too. Because all the pen and pedal dynamo pushers would stay warm with less heating! Come to think of it, we could also carry the principle on to public transport too! Those lucky enough to get a seat, could also pedal away to generate energy to top up the bus, train or tram batteries. Those standing, could use their arms to push and pull reciprocal dynamo drives. (Wonder if I will win a Nobel prize for this ingenius suggestion?) Us dyslexics have such nuf!
davenlesley
Mikel. The only thing dafter than your suggestion is thinking wave power & windmills can meet our future eneergy needs
Chris Carr
perhaps we could just turn a few things off and use less power??
Eric Coster
As the Chinese are still building coal power stations, we should sell our thousand year coal reserves to them. as we cannot use it. Thanks EU.
Michael Hawkins
Eric China have plenty of their own coal - as a polluter we are a non starter compared to the USA, China and India Cut out all pollution and we would not even scratch the surface
IRONSTINE
And where do the obscene profits from energy companies go?
Michael Hawkins
To me in share dividends - thank you very much
bjnk
Ed Davey is on the ball he's going to respond to this report before the end of the year(so quick).He's going to secure and increase energy supplies from abroad lining the pockets of other Countries and placing the burden on the consumer. Do we not put these politicians in place to look after our interests,well do it you sc um bags. I know lets have a state owned company to recruit, manufacture and build the power stations we need for the coming generations,in fact build excess. The EU energy policy is only there to look after the interests of France and Germany,and Russian gas supplies could be stopped at their whim.
davenlesley
What a disgrace. Successive govts have played roulette with our power supplies by playing up to the green lobby and postponing decisions on new nuclear power stations. Instead we have been fed a diet of wave power and windmills as the answer to our energy needs. Ever been had people? Remember this when the lights start going out.
andy johnson
thats ok because by 2015 noboddy will be able to afford it
David Wragg
Dave (below) is right. Labour ignored this problem while subsidising wind power, which is never around when there is no wind or even when the wind is very strong as the turbines overheat. This government is no better - 2 1/2 years in office and not a single new power station authorised.
Eric Coster
Before they where privatised, all utilities had 20% spare capacity. Land sold off, workers sacked, no apprentices. But as they are owned by the French and Germans (Waterloo & WWI & WWII) they are now fighting us by steath. They will sell us energy but at a high price, don't worry, The Gov will hike all taxes, shut schools, hospitals etc etc etc to pay for it. As the Germans often say, Lions led by DONKEY's.
snape
power shortages, water shortages, nhs shortages, millions of immigrants ? now let me think !
Gordon Wright
3:27pm on 5/10/2012
This is what comes of building more and more windmills instead of proper power stations. Even if we carpet the entire country and coastline with these eyesores, they would not even cover our present needs, let alone our increased needs in the future. Perhaps now we will see a return to sanity................
Mikel roi
7:28pm on 7/10/2012
I agree your comment ... but faint chance for your final hope. There are not many of us sane ones left in the World now!
Michael Hawkins
8:26pm on 3/1/2013
It is also a result of permitting uncontrolled immigration with out the infrastructure to support those who come here More people equals more demand on services and resources