The British regulator is warning of shortage risks (very real in my opinion), and steep rate hikes (less real I believe). Like many jurisdictions, the UK is struggling to find a formula where dispatchable generation gets constructed despite intermittent non-dispatchable renewables being awarded top priority on the grid.
Britain risks running out of energy generating capacity in the winter of 2015-16, according to the energy regulator Ofgem.Continue Reading at BBC News:
Its report predicted that the amount of spare capacity could fall from 14% now to only 4% in three years.
Ofgem said this would leave Britain relying more on imported gas, which would make price rises more likely.
The government said that its forthcoming Energy Bill would ensure that there was secure supply.
Ofgem blames the risk on coal-fired power stations being closed sooner than expected and EU environmental legislation.
