Energy bills could rise to more than £2,000, says Ofgem


UK Peak Energy Demand May Outstrip Supply Capabilities By 2017: Douglas-Westwood

John Westwood, chairman of Douglas-Westwood, said: “The rising amounts of required energy capacity will place considerable pressure on the UK economy, the entire energy supply chain and it is the consumer who will ultimately have to pay the price of indecision.

“Considering successive governments have had 30 years notice of the present serious decline of UK oil & gas supplies and full knowledge of generation plant lifetimes there is no excuse for allowing the development of the pending problem. A balance will need to be struck quickly between energy security, the intermittent nature of renewable energy generation, climate change mitigation targets and potentially volatile public opinion.”



Energy bills could rise to more than £2,000, says Ofgem

Rowena Mason and Harry Wallop, The Telegraph

Alistair Buchanan, the chief executive of Ofgem, just two months after predicting bills could increase by 60 per cent by 2016, has now admitted he had not been gloomy enough.

Speaking at a House of Commons Energy select committee he said Ofgem had look again at its findings after energy companies told the regulator that it may have underestimated the scale of problems facing the UK.

Bills have already increased by much more than inflation, climbing from below £600 five years ago, and are now – especially for pensioners – many households’ biggest monthly cost.

Ofgem in October warned that rising demand, an increasing reliance on imports from uncertain sources, a lack of storage facilities and the fact Britain had too many ageing coal-fired power stations, would force up bills by between 14 per cent and 60 per cent above inlfation by 2020.
In the worst case scenario, this would inmply bills would increase from the current average of £1,300 for each household to £1,950.
However, Ofgem now believes bills could go considerably higher…
(3 Dec 2009)
The original Ofgem (Office of the Gas and Electricity Markets) report can be accessed
here. The Telegraph article concludes with a quote from Mr. Buchanan, “It is absolutely incumbent on us to represent clearly to consumers what it is costing them, so they fully understand what the cost is to make Britain a nicer place to live in for our children and grandchildren.” My emphasis. I leave the reader to draw his own conclusions. -KS




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