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BRIEF-OFGEM estimates tightening margins for electricity generation

LONDON, Oct 5 (Reuters) - OFGEM:

* OFGEM-analysis based on joint modelling with national grid shows tightening

margins for electricity generation over next 4 years

* OFGEM-margins are projected to fall from 14 per cent in 2012/13 to 4 per cent

in 2015/16

* OFGEM- challenges identified in ofgem's project discovery remain, but

coal/oil stations now set to close before end of 2015

* OFGEM-coal fired-generation likely to close earlier than expected under EU

law,risk of electricity shortfall highest in 2015/16

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