Ofgem's proposals

Ofgem recommends far reaching energy market reforms to consumers, industry and government

The unprecedented combination of the global financial crisis, tough environmental targets, increasing gas import dependency and the closure of ageing power stations has combined to cast reasonable doubt over whether the current energy arrangements will deliver secure and sustainable energy supplies

Prompt action will reduce risk to energy supplies, help lower costs to consumers and help progress towards climate change targets

Ofgem today published its Project Discovery conclusions after extensive consultation and analysis. They confirm the need to act to deliver both security of supply and environmental objectives at affordable prices beyond the middle of this decade. Prompt action will ensure that consumers do not pay more than is necessary and also allows time for a wider range of reforms to be considered.

Ofgem’s Chief Executive, Alistair Buchanan, said: “The overwhelming majority of responses to Ofgem’s October consultation show that there is an increasing consensus that leaving the present system of market arrangements and other incentives unchanged is not an option. Ofgem has therefore put forward a range of possible options to unlock the up to £200 billion of investment Britain may need. We are keen to work with Government to find the best way forward.”