UK faces power shortages, warns Ofgem

by Alasdair 3. February 2010 13:49
UK faces power shortages, warns OfgemThe UK could be hit with power shortages in the future as providers struggle to deliver sustainable energy supplies, it has been claimed.

Energy regulator Ofgem said the electricity generation sector needs £200 billion of investment, but added companies are unlikely to provide this level of funding without stronger incentives for them to do so.

Furthermore, it warned that the higher utilities prices which would result from these shortages would leave some consumers struggling to pay their bills.

Chief executive of the regulator Alistair Buchanan told BBC News that the energy sector is faced with "the unprecedented challenge of carbon prices, the unprecedented challenge of the credit crunch and the unprecedented challenge of maintaining international supplies".

This warning comes after research from Moneysupermarket, carried out earlier this week, revealed that winter energy bills have almost tripled since 2003.

The price comparison website discovered that average power costs during the cold winter months stood at £616 this year, a 20 per cent rise on 2009 levels.ADNFCR-2539-ID-19594948-ADNFCR

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