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Ofgem warns of Energy Bill rises

Energy watchdog Ofgem has issued a warning to consumers that energy prices may well be set to rise again.

Decreased production capacity of energy within the UK is leading to an increased need for more expensive imported energy. Ofgem have predicted that there could be as much as a 10pc fall in production in April alone, due to power station closures, and that the UK will need more gas suppliers to make up for the shortfall. The warning has come in what is considered a transition period between older power stations closing and newer renewable energy systems still looking to be properly established.

Longer term solutions such as new nuclear power stations and shale gas reserve tapping are still awaiting approval from the government, but in the meantime the UK is planning to decommission a series of ageing power stations over the next few years, meaning there will likely be a drop in production.

While this drop in production can be combated by simply importing foreign energy, this is likely to cost suppliers more, and in the end this will be passed on to consumers.

Alaister Buchanan, chief executive at Ofgem, said: “We are going to have to go shopping in the world markets at a time when they will be very tight (on supplies) themselves”

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