New report warns of massive increase in energy bills
October 9, 2009
The U.K.’s energy regulator, Ofgem has warned that the country’s energy bills could sky-rocket unless action is taken immediately. The regulator has put together four possible scenarios of how the country’s energy demands are going to be met over the next ten to fifteen years. The best of the scenarios indicates that by 2020 domestic fuel bills will have risen across the country by fourteen percent. A slightly worse scenario says that this will already have happened by 2014.
Ofgem illustrates that the U.K.’s dependency on imports of gas leaves it vulnerable to unpredictable price fluctuations in the market. The U.K. is also vulnerable to supply cuts and shortages.
Chief executive of Ofgem, Alastair Buchanan said that it is going to be difficult for the U.K. to come up with reliable energy solutions whilst maintaining a commitment to environmental targets. He pointed out that the public were already paying high prices for energy and that those prices were certain to rise. At the beginning of next year Ofgem will be sending proposals on how to best tackle the challenges of energy supply to U.K. energy companies.
Ofgem’s report suggests that a huge amount of investment is going to be needed to develop a reliable energy infrastructure for the future.
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