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Energy supplies 'will be squeezed in 2015'

Energy supplies 'will be squeezed in 2015'

Energy supplies 'will be squeezed in 2015'

With consumers and businesses feeling the squeeze from rising living costs in the current economic climate, it seems that many of us are reaching breaking point with our bills.

Unfortunately the situation is expected to deteriorate further, according to Ofgem boss Alistair Buchanan, who has warned that "tightness" in the UK's electricity supply could coincide with a "squeeze" on gas by 2015, leading to even higher bills for the country's population.

Giving a speech at an Amsterdam conference, the chief executive said within three years the average annual cost of energy for a household could rise significantly higher than the £1,310 being shelled out currently.

Tom Pering, energy analyst at Inenco, told the Telegraph that a problem with energy supplies will become apparent in 2015 or 2016.

"We're going to have to find something to replace coal or it is
inevitable we will face higher prices," he said. "Delays to nuclear will definitely prolong the duration of time that we have supply issues and we'll have to find something in its place."

Meanwhile, the government has unveiled plans to simplify the energy market for consumers, meaning those investing in a new electrical consumer unit will find it easier to switch suppliers or deals if they come across a cheaper electricity package.

An Ofgem spokesperson commented: "Our retail market review showed that the energy market is too complex and that further action is needed to make sure it works in the interests of consumers.

"Ofgem's reforms include proposals to open up the electricity market, and to make it easier for consumers to choose the tariff that is right for them. They also set out tougher standards of conduct so that suppliers treat customers fairly. We urge suppliers to back our reforms as a first step in re-building customer trust in energy suppliers."

Between the Big Six energy providers there are more than 100 price plans to choose from. Deputy prime minister Nick Clegg recently said that these utility companies will be required to write to their customers every year to offer details of the cheapest deal available, which could go some way to negate the bad news surrounding the escalating energy crisis.