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Ofgem Warns Of Power Shortages

Thursday, June 27, 2013

GMB Accuse Government Of Dithering Over Energy Investment As Ofgem Warns Of Increased Dangers Of Power Shortages

The government has consistently talked about job creation in the energy sector - it just isn't happening says GMB.

GMB, the union for energy workers, responded to the warning by Ofgem that danger of power shortages has increased. See notes to editors for report of Ofgem warning.

Gary Smith, GMB National Secretary for energy, said “Government dithers over energy policy. There is still no go ahead for new nuclear whilst the lights threaten to go out.

In Danny Alexander’s statement this morning there was no change and no progress on new nuclear in this statement.

We believe a deal could and would have been done but from interventions by the Treasury who blocked a deal.

The government has consistently talked about job creation in the energy sector - it just isn't happening.”

End

Contact:  Gary Smith 07710 618 909,  Phil Whitehurst 07968 338810 and David Hulse 07971 266 157 or GMB press office 07921 289 880

Notes to Editors

Report on BBC news website 27th June 2013.

Ofgem warns danger of power shortages has increased

The danger of power shortages in the UK by the middle of the decade has risen, according to industry regulator Ofgem.

Spare power production capacity could fall as low as 2% in two years' time, increasing the risk of blackouts.

More investment in power generation and other action is needed to protect consumers, Ofgem said.

"Ofgem's analysis indicates a faster than anticipated tightening of electricity margins toward the middle of this decade," it said in a report.

Andrew Wright, the regulator's chief executive, said: "Britain's energy industry is facing an unprecedented challenge to secure supplies."

The global financial crisis, tough emissions targets, the UK's increasing dependency on gas imports, and the closure of ageing power stations were all contributing to the heightened risk of shortages, Ofgem said.

It suggests that - should power shortages become critical - National Grid could be given powers to negotiate with major users about coming offline "during times of stress".

"Preventive action taken now will help protect consumer supplies," the report said.

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