OFGEM warns of dwindling UK power capacity

It has been said in a report on Friday that Britian faces a potential shortfall in electricity generation in the next three to four years.

Ofgem said spare generation capacity in the system, called the margin, could fall to 4 percent by 2015/16 from 14 percent today.

Ofgem’s Chief Executive, Alistair Buchanan has saidBritain’s energy industry faces unprecedented challenges…to attract the investment to deliver secure, sustainable and affordable energy supplies for consumers.

The decline in generation capacity is largely due to the closure of coal and oil-fired plants under the EU legislation aimed at limiting the amount of greenhouse gases emitted in the bloc.