The energy regulator said that the need for this investment arises at a time of volatile world energy prices and Britain’s increasing dependence on gas imports. There is a high likelihood of rising consumer bills, especially if oil and gas prices continue their underlying rise since 2003.
Alistair Buchanan, chief executive of Ofgem, said: “Our scenarios suggest that Britain faces a tough challenge in maintaining secure supplies whilst at the same time meeting its climate change targets. However, there is still time to act. Ofgem will be putting forward proposals in the New Year based on today’s consultation to ensure that Britain’s energy industry can meet the challenges ahead.”
As reported, customers could see increases in domestic energy bills of between 14% and 25% by 2020, with the possibility that wholesale price spikes could lead to an increase in domestic energy bills of up to 60% in the interim period.
