Ofgem Warns to Brace for Higher Prices
The Chief Executive of energy watchdog Ofgem has warned that Britain’s reliance on fossil fuels is at the peak of it’s ‘roller-coaster’ this winter – and will plunge fast over the next few years. Writing in the Daily Telegraph, Chief Executive Alistair Buchanan warned both public and business energy consumers to brace for higher energy prices as fossil fuel supplies begin to dwindle.
Ofgem predicts higher energy bills
Buchanan said that as other countries (as well as Britain) downsize their production of fossil fuels, the market supply will outstrip demand as power plants are decommissioned and overseas gas supplies dwindle. We have to face the likelihood that avoiding power shortages will also carry a price.
“If you can imagine a ride on a roller coaster at a fairground, then this winter we are at the top of the circuit and we head downhill fast”. “Within three years we will see reserve margin of generation fall from below 14% to below 5% – that is uncomfortably tight.”
Ofgem Warns to Brace for Higher Energy Prices