We seem to be facing daily cries of outrage in the tabloids as they warn of a return to the 1970?s with the prospect of imposed power cuts and energy rationing to prevent blackouts. This raises intriguing questions of whether this is simply news-selling scaremongering or whether the threat is real, and if so, who is ultimately responsible for finding a fix and what is it?
No government that is approaching a general election would want to be held accountable for allowing blackouts or electricity rationing to happen ?under their watch?.?It is something the public simply would not stand for given the amount of money they spend every year on energy bills.?That same public has become used to a consistent, uninterrupted power source.?When they flick a light switch or turn on the kettle, the corresponding light comes on and the kettle boils.?If, somewhere in the perhaps not too distant future, huge swathes of the nation were unable to enjoy this basic staple of comfort, then accusing fingers would no doubt be pointed at those in charge of the country.
The ongoing lack of assertion we have witnessed over strike prices for nuclear as well as subsidies for renewables may be a source of frustration now for the public and industry?this is destined to develop into a source of genuine anger if what is increasing in threat level should manifest into reality.?Read bluntly, Ofgem?s ?state of the nation? findings seem to imply a distinct lack of confidence about the current system?s ability to generate enough power by 2020 to sustain British businesses and meet consumer demand.
So what or whom is to blame for landing us in this predicament? There are several factors that could be held responsible ? the general state of the economy and the ever-tightening margins facing energy companies which has led to a lack of investment in new plants??Is it a lack of incentives from government and a constant shifting of goalposts that has led to confusion and uncertainty, or is it environmental factors such as the anti-pollution measures and the proposed costs to modernise existing plants?
It could simply be that these plants have been so heavily relied upon that they have burnt so much coal, so quickly, that they are destined to close far quicker than first predicted. The blame list could go on, and seems to evolve and adapt depending on the paper you pick up in the morning.
What I find increasingly worrying is that very few companies possess a bank balance that can invest in new equipment or ?clean? alternatives to these ?dirtier? models given the current financial squeeze and lack of time ahead of impending deadlines. Surely in this age of fibre optic, hi tech advances, we can find a path that will help us navigate forward instead of regressing?
From a consumer?s perspective, it appears bleak. Ofgem wants state intervention but claims that introducing a sustainable, green network, to the tune of ?200bn, would push up domestic energy bills. They originally predicted that these rises would be between 15 and 60 per cent, however, uSwitch.com forecast that by 2020 an average domestic bill could reach a whopping ?4,733 a year ? is this realistic or sustainable? As a consumer, it is tough to stomach, however it begs the question of whether there is any awareness about the impact of increases in energy costs, or if there is any appetite from consumers to understand the implications and act on it?
Michael Fallon and Ed Davey have reiterated their commitment to ?keep the lights on? and The National Grid proposes a curfewed rationing system as a solution to alleviate demand. This feels inefficient and wasteful to keep generators on all day. Not only that but this would need to be funded from somewhere - most likely it will be the consumer who foots the sizeable bill generated by this and with domestic energy prices being as high as they are; is not a realistic solution.
So, do we turn to the implementation of a capacity market or reopen ?mothballed? power stations to pick up demand? The battle lines are currently being drawn on this matter and watched with great scrutiny.
I believe that amidst all the debate and conjecture, the only tangible hope is for British businesses and consumers to work harder to improve their own energy efficiency.
This means an honest audit of existing energy usage to see what can be fixed in the home or around the workplace, and what needs modernising and improving.?This renewed responsibility and scrutiny would allow more control of energy constraints and a greater empowerment to ask responsible, financial motivated questions ? like how much am I spending on my energy??
It would seem that the only viable option is to try and eradicate energy wastage and reduce costs so the entire supply and demand chain becomes more economical and responsible for their own future-proofing.?Ofgem?s warning is real and the issue isn?t going anywhere.?The headlines aren?t yet to be believed but do paint a sombre picture for the future of the energy industry if the wastage and shirking of responsibility continues at the same pace.
For further information please visit www.schneider-electric.com/uk.
Source: http://www.pandct.com/media/shownews.asp?ID=37742
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