The Big Six Urges TheUK To Support Gas Fired Power Stations
By Cynthia Taylor
Representative of the Big Six energy companies says that the UK could face a shortfall.
The Big Six companies feel that government needs to ‘get behind’ gas fired power stations if they want to ensure that energy security is safe and prevent lights going off in households. This is according to Energy UK who represents the Big Six energy companies.
Chief Executive of the energy industry trade body, Angela Knight, said that judging from feedback from the Big Six, they have indicated that the ministers will need to increase their plans for the introduction of a capacity market, that could encourage investments in the new gas fired power stations.
Urgent action needed
Energy UK, who represents NPower, EDF, E.ON, British Gas, SSE and Scotish Power as well as many smaller energy companies, said that the UK cold be facing a shortfall in energy generation capacity if they don’t back the gas fired power stations.
Ms. Knight has written to the energy secretary, Ed Davey urging him to consider the capacity mechanism, and that it was urgent, she claims that it was the only way to eliminate the uncertainty and risks in the energy sector, and also to ensure that consumers will not have ‘the plug pulled on them’.
Ms Knight continued that it was essential for the market participants to be given clarity on arrangement for the future market, and that the rules that apply to define them should reach an agreement as quickly as possible.
The future for UK energy generation is set to drop by about 20% over the next 10 years as older power stations are closed down,
And uncertainty of the governments policies with regard to their plans of replacing the old plants with nuclear and wind has seen delays.
This will result that fewer plants will have to produce more energy, this could create a situation where the current reserve generaion capacity could fall from 15% by about 5% by the year 2016.
The argument, Ms. Knight says, that this is a very tight margin which could plunge the country into darkness, should there be a squeeze on the supply of gas, and the industry needs to avoid this at all costs. However, she said that this may only be possible, if he government takes action now to avert it.
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