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Ofgem chief executive warns of rising energy bills

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Date posted: 19th February 2013

Low UK energy production

Alistair Buchanan, chief executive of Ofgem, has stated that due to an energy deficit the UK will need more gas supplies through the importation of fuels such as gas. As such, this will likely mean that consumers will be faced with higher energy bills.

Due to UK power station closures, the energy watchdog estimates that there could be a 10% fall in energy production by April 2013. With renewable energy power stations still in their infancy and older power stations closing, this, according to Mr. Buchanan, concludes that the UK will need more gas supplies to balance the reduced energy production.


Overcoming the shortfall

There is the possibility to replenish dwindling gas supplies by increasing gas imports, although this will inevitably cost more to the end user, the consumer. Also, with old power stations closing at the moment and minimal renewable energy plants to fall back onto, serious thought needs to be taken to help support our situation.

How can we, the consumer, help ourselves? Can businesses and homeowners reduce their energy usage? However small our efforts, if everyone does a little bit could we generate some dramatic changes?


Longer term solutions

Ideas such as new nuclear power stations or tapping domestic shale gas reserves could aid the UK’s energy requirements, but these ideas have yet to be given the green light by the government.

In this situation, Mr. Buchanan confirms that the forthcoming closure of old power stations will make it fundamental to invest more in securing gas supplies. He believes that is important due to the reduction in energy supplies, commenting that: ‘If you can imagine a ride on a rollercoaster at a fairground, then this winter we are at the top of the circuit and we head downhill – fast.”

“The big worry about gas for all consumers is what price will we have to pay to get it?

“Because just when we need more gas, world demand for gas is set to rise while our own supplies are predicted to fall by another 25% by 2020.”


What can you do?

As part of RPSs environmental policy (available to download in our audit pack), our business continually looks for ways in which we can reduce our dependency on fuels and energy. Our environmental awareness campaign, ‘power unplugged’ encourages our employees to perform simple checks around the office and operations, such as keep unused equipment unplugged, close unnecessary windows and doors and turn off any optional heaters or lights.

These small steps in one business can reduce energy bills and more importantly our reliance on energy. If all businesses and home consumers can perform some simple energy checks too, it could help reduce your energy bills and also reduce our nation’s energy demand.


Are you concerned about potentially higher energy bills? Please leave us your comments below to let us know how your thoughts.

For more information please contact our Environment Manager Thomas Hudson on 01642 469322 or

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