Friday, 5 October 2012

Blackouts + higher prices

If you want to get alarmed about the squeeze on electricity supply and the possibility of power cuts today's report from the energy regulator, Ofgem, will give you plenty of ammunition.

The risk factor is rising rapidly. Blackouts affecting up 1.5m households are rated as a one in 3,300 year event at the moment (i.e. close to no risk at all), but as a one in 12 year event in 2015/16.

This is because of the decommissioning of coal power stations, in line with environmental rules, something successive governments have been well aware is set to happen.

It's not just your electricity supply which is at risk, the squeeze will cause prices to jump yet again, according to Ofgem.

"Tough environmental targets and the closure of ageing power stations would increase the risk to consumers’ energy supplies and could lead to higher bills," says Ofgem in its statement.

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