I got a bit of a shock this morning when I switched on to watch the morning news, the BBC reported that UK utility bills could rise by as much as 60% over the next 10-15 years according to UK government regulator Ofgem (Office of gas and electricity markets) in their “Energy Market Scenarios” report.
This maybe a UK story but the implications are that worldwide everyone faces the same problem and it highlights how all of us, households as well as commerce and industry need to act now to become more energy efficient. This is one aspect that Ofgem, at brief review of their report, do not seem to have factored in to possible outcomes.
The report considers four scenarios that the UK could face over the next 10-15 years. The worse case scenario, and the headline grabbing one at that, is a 60% rise in utility prices but what seems the more likely scenario is somewhere between 15-25%!
That’s better than 60% but still a huge jump.
The problem is being able to supply what is needed, the same situation faced by practically every nation, with many countries facing the problem already.
Energy efficiency can have a major impact on reducing the impact of these challenges.
Ofgem claim that the UK will need to invest £200bn in power plants and other energy infrastructure over the next 10-15 years to avoid energy supply shortages and meet climate change goals. Consistencies of supply and energy security form the major concerns.
The UK and many other countries rely on importing energy, gas and electricity, as well as, at times, exporting the same. This means that supply is reliant on other nation’s willingness to keep the flow going. This exposure meant that supply disruptions across the world could affect prices.
Ofgem highlighted that the UK's main energy suppliers faced the dual challenge of renewing old power stations near the end of their life span, while coping with increasingly volatile global gas markets, and would likely have to raise bills in order to meet future energy supply demand and carbon targets.
One way to impact on these scenarios, almost immediately, is by becoming more energy efficient. Becoming energy efficient eases demand, reducing the urgency for new power plants, allows a more consistent supply and reduces carbon emissions.
Energy efficient technology is also a far cheaper than building more power-plants, substantially reducing that £200bn.
We can all become more efficient, just switch off that light and turn down (or up in warmer climes) the thermostat but to make real impact we need to know what we are doing.
Hence the importance of smart meters, particularly with visual displays that help you to see what you are doing, why you are doing it and what you are achieving.
For commerce and industry our Eniscope takes it a stage further, allowing for very precise decisions to be made on what to do and where efficiencies can be made to reduce the spiralling energy bills.
By seeing what is going on with energy use businesses can make sound financial decisions which will help with the bottom line and reach green house gas targets.
It would appear whatever we do, energy prices will rise, but what we can do is become more energy efficient and by so doing, despite the base price rise, we can reduce our energy spend and help towards a more stable energy future and a greener planet.
Comments