Energy shortage will lead to bill rises, says Ofgem

Pressures on UK energy supplies are likely to lead to bill rises for many people, it has been warned.

Speaking to BBC Radio 4, Ofgem's Chief Executive Alistair Buchanan revealed that price rises of between 14% and 25% could be seen over the next ten years.

This is due to a combination of problems faced by the energy market, including the global financial crisis and difficult environmental targets.

"Our evidence shows that Britain has a window of opportunity to put in place far-reaching reforms to meet the potential security of supply challenges we may face beyond the middle of this decade," Mr Buchanan revealed.

He said that although changes would not be taken lightly, reforms will be needed to guarantee the security of the UK's energy supplies.

The government recently announced that the country is so far exceeding its carbon reduction targets, as set out by the Kyoto Protocol.

Posted by Ruth Bradshaw