In a report to the UK government, utility giant RWE warned that unless the government provided greater clarity going forward on emissions regulation, the nation will face the possibility of an electric power shortfall in the next few years:
And once they get that clarity, what source of electrical generation needs to be part of the solution?
Andy Duff, RWE npower's chief executive, told a conference in London on energy organised by the union Amicus: "These uncertainties are undermining industry confidence with the result that no one is investing. It is not yet too late, but the Government must act fast to set out the ground rules for the ongoing running of our fossil fuel plant. Otherwise, over the next few years, we will see Britain's capacity margin dwindle to a level where security of supply is in real jeopardy."
And once they get that clarity, what source of electrical generation needs to be part of the solution?
Turning to the first phase, which runs from 2005 to the end of 2007, Mr Duff said: "We are the only country in Europe to put the entire burden [of emissions reductions] on the power sector. That is a big risk to take on something as important as electricity supply." Derek Simpson, the general secretary of Amicus, called for an "urgent" review of energy policy that would consider building nuclear stations.
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