Additional electricity storing facilities problems, predicted by Ofgem

Recently, a report from the Ofgem raised some interesting questions about the level of electricity storing facilities in the UK market, in their own words is "“set to end quite rapidly over the next few years.”  The margins of spare electricity are possible to be reduced from the present 14 percent on average to only 4 percent by 2016. Sounds pretty scary, huh?

 Things get scarier, the analysis predicts that there will be dark, I mean that in the future some of the power grid customers will experience blackouts, Ofgem also said that : "The risk of electricity disconnections will appreciably increase from near zero levels.”

 We all remember the 2009 predictions, now revised, in the Project Discovery, which stated that old technology  , like coal and oil power stations, will be history until 2015 (when is the deadline for these major polluters) .

 The major risk factors to energy supplies are the global economic crisis, the environmental program and the old and aging energy infrastructure, all summed up can trigger unpleasant events in the near future.

 Mr. Alistair Buchanan, Chief Executive of Ofgem made the following comment:

 “The unprecedented challenges facing Britain’s energy industry, identified in Ofgem’s Project Discovery, to attract the investment to deliver secure, sustainable and affordable energy supplies for consumers, still remain. Ofgem is working with Government on its plans to reform the electricity market to tackle these issues.

“Ofgem is playing its part by helping Britain to attract nearly £30 billion of network investment thorough its RIIO price controls. Ofgem is also seeking sweeping reforms to the retail market to ensure a simpler, clearer and fairer energy market for consumers. This is vital as if consumers are going to be expected to pay for this investment, it is only right that they see a complete change in the way suppliers treat them. Encouragingly, we are increasingly seeing evidence that suppliers have got the message and we will be publishing our next reforms proposals shortly.”

 Mr. Edward Davey, secretary of state for Energy and Climate Change (DECC) made a declaration following the Ofgem report:

“I am grateful to Ofgem for providing to Government their first annual Electricity Capacity Assessment. It provides a comprehensive analysis of the security outlook and Government will consider carefully the implications. We will respond formally before the end of the year.

“Security of electricity supply is of critical importance to the health of the economy and the smooth functioning of our daily lives. That is why the Government is reforming the electricity market to deliver secure, clean and affordable electricity.”

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