Energy analyst David Hunter: power warnings have come too late
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by
business editor Trevor Sturgess
Official warnings about energy shortages and soaring prices have
come too late, according to a Kent expert.
David Hunter, energy analyst for McKinnon & Clarke, based at
Oad Street, near Sittingbourne, said the Government had lost a
decade of energy planning and shared concerns that without urgent
action, the UK lights could go out by 2015.
It should have invested more in new power generation facilities
well before now.
The report by OFGEM, the industry regulator, casts doubt on on
the industry’s ability to deliver sufficient power by 2015. It
recommends far-reaching reforts of the energy market to ensure
plentiful low carbon energy supplies well into the future.
Its proposals were wide-ranging and radical but rather late, he
said. "OFGEM is effectively admitting that it, and the Government,
have lost a decade of energy planning. The country needs to find
£200billion - at least - to invest in its energy infrastructure by
2020 to meet the UK’s energy needs."
There should have been more investment in nuclear and renewable
generation, capacity payments to secure power station availability,
and a reasonable floor on the carbon price to create a level
playing field for low carbon generation.
Mr Hunter blamed the watchdog for overseeing low investment and
creating market conditions that are "clearly not working". No
wonder our power stations are on their last legs, he says.
By 2015, there would be a worrying dependence on foreign gas to
generate power - as much as 75 per cent - because new nuclear, wind
and clean coal facilities would not be ready in time.
Mr Hunter believes it is inevitable customers will have to foot
the bill.
"Consumers, who are already paying near-record prices for their
gas and electricity, will have to stump up for further increases in
order to pay for the belated response to what has been a glaring
shortfall in future supplies."
The CBI employers’ organisation echoed Mr Hunter’s fears. John
Cridland, deputy director-general, said: "This report serves as a
stark warning existing policy will not deliver the balanced energy
mix needed to provide security for the UK, help cut carbon
emissions, and maintain competitive prices."
Thursday, February 04 2010
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