UK power industry ‘needs £200bn of investment’

The UK could face power shortages in the coming years unless there is heavy investment in the industry, according to energy regulator, Ofgem.

They also warn that many consumers may struggle to meet the rising prices they will have to face.

Ofgem say that there is “reasonable doubt” over the UK’s ability to maintain sustainable supplies over the next decade.

In order to combat the problem, Ofgem believe investment to the tune of £200bn is required.

In its report, Ofgem says it believes that energy companies  may need larger incentives to commit to that level of funding.

In turn, they believe that the UK’s open, competitive energy market could fail to deliver secure supplies.

The regulator suggests a range of solutions, including  requiring companies to deliver more generation capacity and gas storage.

It also suggest centralising the industry’s market control, which would represent its biggest change since privatisation.