Huge Investment Needed for Britain's Energy Supplies

Ofgem has said far ranging energy market reforms are needed to ensure Britain's energy supplies remain secure.

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.

Around £200 billion of investment will be needed in the energy industry over the next 10 years - which will inevitably lead to significant increases in electricity and gas bills.