Consumers face continued lack of cheap energy with grid problems - 20/02/2009
Ofgem, the energy industry regulator, has warned that consumers could face increased prices from energy suppliers as the result of potential grid problems.
The regulator has written to National Grid requesting a review into the danger of so-called bottlenecks on the network that could result in higher consumer prices, according to New Energy Focus.
National Grid is under particular pressure to improve connections to remote renewable energy projects and there are concerns that this could exacerbate the problem.
According to the website, Stuart Cook, director of transmission for Ofgem, told National Grid in a letter: "Given the significant level of forecast costs and the fact that the rate at which constraint costs are incurred will increase significantly in the next few weeks, we consider this matter requires your immediate attention."
Increasing capacity on the grid is currently thought to carry costs of up to nearly £300 million over the course of the next 12 months or so.
Many renewable energy projects are yet to contribute to the grid as the infrastructure does not facilitate connections to more remote locations.
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