Electricity regulator ‘Ofcom’ announced this week that there is doubt over the energy market delivering sustainable electricity supplies for British needs.
Ofgem blames the global financial crisis, tough environmental targets, increasing gas import depency and the closure of ageing power stations.
In response to this discovery the Regulator recommends ‘far reaching energy market reforms’. Reform options have been put forward for further consultation and include a centralised renewable energy market and a central buyer of energy.
Ofgem’s Chief Exec Alistair Buchanan said “Our evidence shows that Britain has a window of opportunity to put in place far reaching reforms to meet the potential security of supply challenges we face beyond the middle of this decade. We do not advocate change lightly, but all the facts point to the need for reforms now to provide resilient supply security. Acting earlier will also help keep costs as low as possible for consumers and business.”
Secretary of State for Energy & Climate Change Ed Miliband said he had confidence in supply requirements being met.
The Ofgem report comes at a time when environmental groups are threatening to challenge new planning documents designed to fast track energy infrastructure through the planning system. Friends of the Earth believe there are serious legal flaws with the documents. The government contend that its energy policy has already been decided and that as much energy infrastructure as possible from a diverse range of energy sources is required.
