Ofgem says action needed to ensure Britain's energy supplies remain secure

worldtraveller

Ofgem recommends far reaching energy market reforms to consumers, industry and government.

The unprecedented combination of the global financial crisis, tough environmental targets, increasing gas import dependency and the closure of ageing power stations has combined to cast reasonable doubt over whether the current energy arrangements will deliver secure and sustainable energy supplies.

Prompt action will reduce risk to energy supplies, help lower costs to consumers and help progress towards climate change targets.

Key Issues:

1. There is a need for unprecedented levels of investment to be sustained over many years in difficult financial conditions and against a background of increased risk and uncertainty.

2. The uncertainty in future carbon prices is likely to delay or deter investment in low carbon technology and lead to greater decarbonisation costs in the future.

3. Short-term price signals at times of system stress do not fully reflect the value that customers place on supply security which may mean that the incentives to make additional peak energy supplies available and to invest in peaking capacity are not strong enough.

4. Interdependence with international markets exposes GB to a range of additional risks that may undermine GB security of supply.

5. The higher cost of gas and electricity may mean that increasing numbers of consumers are not able to afford adequate levels of energy to meet their requirements and that the competitiveness of industry and business is affected.


Ofgem Press Release

markharding557

even higher priced energy that may black out cheers goverments of the last 30 years:beer:

Dave_save

We closed the coal mining industry. What do you expect?

C_Mababejive

http://www.guardian.co.uk/business/2010/feb/03/energy-bills-unaffordable-system-overhaul

The Headline should read "OFGEM finally admits it has failed..."

Remember the days of the British Gas Corporation and its electrical counterpart, The Central Electricity Generating Board.

Everything was oh so simple...one number to ring,one concern responsible for gas,one for electric. Subsidised and special offers for consumers,a fully integrated gas and electric generation,transmission,and supply industry.

What do we have now? A massively fragmented industry,all sold off for corporate profits and many owned by non UK concerns. They cannot invest in infrastructure purely because they have no security,must prioritise shareholders and are hamstrung by OFGEM policy which dictates how much they can spend,reviewed periodically,and inevitably cut at every review. A recipe for disaster. Meanwhile in OFGEM quangoland,they help themselves to fat pay packets and fat pesnion allowances whilst holding directorships in other private companies,thus ensuring that they make even more money.

And what does OFGEM do? tell us they we face higher bills and that energy producers must invest....as if it all has nothing to do with OFGEM when,in fact,it is THEY who have brought about the whole situation.
They even lied to us. A few weeks ago in the bad weather,they told us how secure energy supply was despite several balancing alerts being issued. Now that crisis has passed,they admit that in fact there is a crisis.

albyota

On monday at midday the government announced the feed in tariffs for Microgenerating Solar PV..... Brilliant........and as of today at 5pm the government closed the £2,500 grant from LCBP for installing this technology,......joined up thinking there then!!!

Gareth56

OFGEM.......the energy suppliers friend the consumers foe.

rhiwfield

albyota wrote: »

On monday at midday the government announced the feed in tariffs for Microgenerating Solar PV..... Brilliant........and as of today at 5pm the government closed the £2,500 grant from LCBP for installing this technology,......joined up thinking there then!!!

Yes it was! Why should the govt pay twice for people to install solar pv? Now that FITs are definite, you know the investment return. Those people who gambled on FITs and committed before 3/2/10 get both grant and FITs, those who wanted certainty have got it, but with a lower return.