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UK faces a "rollercoaster" energy market says Ofgem (Energy Global)

    CPS Director Tim Knox was quoted in Energy Global on Wednesday 20th February 2013, discussing the energy crisis affecting the UK.

    To view the full article, please visit the Energy Global website

    "Alistair Buchanan, the outgoing head of the UK’s energy regulator, Ofgem, has warned that the country faces escalating electricity prices and a dependency on imported gas for up to 60 – 70% of its electricity needs by 2020.

    In a letter to the Daily Telegraph, Buchanan highlighted the fact that National Grid would find it increasingly difficult to meet the UK’s energy needs as older coal- and oil-fired power plants close: “On Wednesday January 16, due to unplanned outages and cold weather, National Grid had to find power to supply roughly a million homes to keep the lights on. Fawley, an oil-fired plant in Hampshire, was one of the power plants that responded. Next winter Fawley will not be there. Indeed, about 10% of our current generation stock goes next month as coal and oil-fired power stations close earlier than expected to meet environmental targets.”

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    The Centre for Policy Studies (CPS), a conservative thinktank, also called for an “emergency power reserve” made up of older coal- and oil-fired power plants. It also highlighted the potential political impact: “For the first time since the 1970s, energy policy could influence the outcome of the next general election,” the CPS said in a statement.

    “Politicians have kicked the energy can down the road for too long. That can is now going to blow up: households will end up paying the price in higher energy bills and maybe even energy outages. This was both predictable and unnecessary. We now urgently need a clear policy designed to meet the twin aims of lower energy costs and greater security of supply,” added Tim Knox, director of the CPS."

    To view the full article, please visit the Energy Global website

    Date added: Wednesday 20th February 2013