Households will face yet more energy hikes over the next three years as ageing power plants close and the country is forced to import fas at a time of tighetening global supply, it has been claimed by the energy watchdog.
Outgoing chief executive Alistair Buchanan said Britain was set for an "uncomfortable" squeeze as energy reserves dry up.
With coal and oil-fired power stations closing earlier than expected to meet environmental targets, around 10% of current generation stock will go by April. And within three years, the reserve margin of generation will fall from around 15 per cent to below 5 per cent.
Mr Buchanan, who steps down in June after 10 years in the post, said it was inevitable that prices will rise as supply struggles to keep up with demand.
"We've got to go shopping around the world for our gas," he said.
"It's just horrendous serendipity that just as we have a squeeze on our power and turn to gas, the global markets have a squeeze," he added.
He called on the Government to deliver on its energy bill, which is going through Parliament and is designed to encourage investment in low-carbon generation, while saying consumers will have to better manage their bills through energy efficiency.
Energy providers will also be watched closely by the regulator to ensure they do not "take advantage" of the situation to try to raise prices by more than necessary, said Mr Buchanan.
Which? executive director Richard Lloyd said consumers will be "alarmed" at Ofgem's price warnings.
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