Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Ofgem head warns of energy price rises

Ofgem’s chief executive has warned of gas and electricity shortages in three years, increasing household bills.

Speaking at a conference in Amsterdam, Alistair Buchanan advised that a shortage of supply would have a detrimental effect on price by 2015.

Mr Buchanan advised the situation will be made worse by the end of the decade due to delays in building nuclear power plants and wind farms.

“Frankly if I took a vote in this room, I don’t think we’d see any hands expecting Hinkley Point nuclear station this side of 2020,” Mr Buchanan said.

Britain’s first new nuclear power station was meant to be built at Hinkley Point by 2017 to help offset the effect of closing coal stations.

Britain is currently closing a number of coal fired power stations to comply with EU pollution requirements, leading to a possible incremental price rises as gas-fired power stations have to be built to replace them.