Ofgem warns of power shortage risk

Written By Unknown on Kamis, 27 Juni 2013 | 19.12

27 June 2013 Last updated at 07:24 ET

The danger of power shortages in the UK by the middle of the decade has risen, according to industry regulator Ofgem.

Spare power production capacity could fall as low as 2% in two years' time, increasing the risk of blackouts.

More investment in power generation and other action is needed to protect consumers, Ofgem said.

"Ofgem's analysis indicates a faster than anticipated tightening of electricity margins toward the middle of this decade," it said in a report.

Andrew Wright, the regulator's chief executive, said: "Britain's energy industry is facing an unprecedented challenge to secure supplies."

The global financial crisis, tough emissions targets, the UK's increasing dependency on gas imports, and the closure of ageing power stations were all contributing to the heightened risk of shortages, Ofgem said.

It suggests that - should power shortages become critical - National Grid could be given powers to negotiate with major users about coming offline "during times of stress".

"Preventive action taken now will help protect consumer supplies," the report said.


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