Ofgem Calls for Reform to Secure Energy Supplies

Posted under Blog by Ruth

According to Ofgem, Britain needs to make urgent reforms to its energy market if it is to secure sustainable energy supplies at prices we can afford to pay.

A new Project Discovery report, released by the regulator, has claimed that a combination of financial crisis, a dependency on imported gas, and closing down of power stations means that there is ‘reasonable doubt’ over the ability to meet energy demands from the latter half of the decade.

As a result, Ofgem have proposed a number of reforms, including to put stronger obligations on suppliers to create a centralised renewable energy market.

Chief executive of Ofgem, Alistair Bachanan, said that ‘We do not advocate change lightly, but all the facts point to the need for reforms now to provide resilient supply security’.

A result of this report is that energy costs may see dramatic rises for residential property owners, who are already struggling to pay bills. As costs increase, it may be that some householders can’t afford to pay for the energy they really need.

Measures such as double glazing can help to reduce this risk in the long term. By keeping homes naturally warmer, thermostats can be turned down and energy bills will become cheaper.

Last year it was also reported by energy adviser Professor David McKay that there is a risk that our energy supplies will fall short, simply because renewable energy is not being developed fast enough.