Consultancy and business services firm LogicaCMG has issued a stark warning that serious power shortfalls are just around the corner for the UK.

According to Logica, by 2015, the energy demand in the UK could exceed supply by 23% at peak times and the impact of the ‘real’ energy gap on GDP will be equivalent to GBP108 billion a year.

While the government’s Energy Review indicated that, by 2025, energy demand in the UK may exceed the available supply by 30%, Logica’s research suggests that a decade earlier the energy gap could already be a major problem at peak times. This shows that the gap is widening far more quickly than anticipated, and will have a significant impact on UK businesses and households, the firm argues.

Kieron Brennan, managing director of Logica’s energy and utilities business, said: Action needs to be taken now to reduce the energy gap. We all need to use energy more efficiently and the government will have to take steps to resolve this issue. If this doesn’t happen, it is almost certain that the power will go off and businesses will lose money.

In response, the Association of Electricity Producers reiterated the need for government action, particularly on reducing construction red tape, although it also pointed out that over 17GW of new generation capacity is planned by UK power companies, with investment amounting to at least GBP7 billion. The majority of investment is in clean coal, gas and renewables.