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Ofgem calls for "far reaching" reform to secure energy supplies
03/02/10
Edited by Sophie Griffiths. Britain needs to consider urgent and "far reaching" reforms on its energy market if the country is to secure sustainable supplies at affordable prices for consumers beyond the middle of this decade, Ofgem has said.
The regulator's Project Discovery report has warned that the combination of the global financial crisis, more stringent environmental targets, an increasing dependency on imported gas and the closure of several ageing power stations has cast "reasonable doubt" on the ability of current energy arrangements to meet demand.
It has proposed a number of reforms, including putting stronger obligations on suppliers to help meet carbon reduction targets and carrying out structural changes ranging from creating a centralised renewables market to establishing a central energy buyer.
Ofgem chief executive Alistair Buchanan said: "We do not advocate change lightly, but all the facts point to the need for reforms now to provide resilient supply security."
He added acting early will help to keep costs down for residential property owners and business customers.
Last year, the government's newly-appointed energy adviser Professor David McKay told BBC News Britain risks a shortfall in energy supply because renewable sources are not being developed fast enough to replace the coal and nuclear power stations being phased out in 2016.
