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Growing threat to security of supply

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The security of Europe’s electricity supply is facing a growing threat from demand. According to a report from consulting group Cap Gemini, the margin between supply and demand fell to 4.8% in 2005, 0.1% below the 2004 figures.
“This low-power margin is a wake-up call for the industry, government and regulators that the security of the supply is under severe pressure,” commented a spokesperson for Cap Gemini.
Britain has been attempting to tackle the issue and has raised its generating capacity by 13% this winter. However industry experts have underlined the need for continued investment to replace coal-fired power plants that do not meet new European regulations, as well as ageing nuclear reactors.
“The UK is looking at around £20bn worth of investment in power stations, this side of 2020,” commented David Porter, chief executive of the Association of Electricity Producers.

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