UK warned over energy price rises
HOUSEHOLDS are bracing for further energy bill hikes after regulator Ofgem warned Britain was heading for a “horrendous” supply crunch.
Alistair Buchanan, its outgoing chief exec, said the UK was facing an “uncomfortable” squeeze in energy reserves over the next three years as ageing power plants close and the country is forced to import gas at a time of tight global supply.
With coal and oil-fired power stations closing earlier than expected to meet environmental targets, 10 per cent of current generation stock will go by April.
Mr Buchanan said it was inevitable that prices will rise as supply struggles to keep up with demand.
He added: “It’s just horrendous serendipity that as we have a squeeze on our power and turn to gas, the global markets have a squeeze.”